Positive growth momentum is expected to continue in coming months on account of favourable economic conditions in the country
India’s largest two-wheeler manufacturer, Hero MotoCorp has reported YoY gain of 12% in the month of November. A total of 390,932 units were sold in comparison to 349,393 units sold in November last year. YTD numbers are also positive with cumulative sales at 3,663,875 units during YTD FY’23. In comparison, a total of 3,360,493 units were sold during YTD FY’22.
However, MoM growth is negative in comparison to 454,582 units sold in October 2022. October and November are usually the best months of the year in terms of sales. Most OEMs including Hero launch special schemes, discount offers and finance options to ensure max sales during this period.
Hero domestic sales vs. exports – Nov 22
Even though Hero has stepped up focus on exports, it continues to be largely dependent on domestic sales. In the month of November, domestic sales were at 379,839 units. YoY growth is positive, as compared to 328,862 units sold in November last year. Domestic sales during YTD FY’23 was at 3,539,944 units, as compared to 3,163,155 units during YTD FY’22.
Hero exports have taken a hit in November, possibly due to inflationary conditions prevailing in several overseas markets. India is among the few countries that have relatively less inflation in comparison to global average. Hero export numbers in November were at 11,093 units, a significant fall from 20,531 units exported in November last year. Cumulative numbers tell a similar story with 123,931 units exported during YTD FY’23. Exports were higher at 197,338 units during YTD FY’22.
Overall, it’s the motorcycles that continue to generate majority of sales for Hero MotoCorp. Some of Hero’s bestsellers include Splendor, HF Deluxe, Hero Passion and Glamour. Contribution of scooters in overall sales was around 10% in November 2022. Both motorcycle and scooter sales were positive in the month. A total of 352,834 motorcycles and 38,098 scooters were sold, as compared to 329,185 motorcycles and 20,208 scooters in November last year.
Growth momentum to continue
With favourable economic indicators such as encouraging farm activity, along with positive consumer sentiments and upcoming marriage season, Hero MotoCorp expects the sales momentum to continue in coming months. Sales will also get a boost from VIDA electric scooter, which is currently available in Bengaluru, Delhi and Jaipur. Deliveries are scheduled to commence from second week of December 2022.
Hero MotoCorp continues to focus on strengthening the social ecosystem, as part of its CSR program. The company recently provided 50 motorcycles and 10 scooters to Gurugram police. These will be used for patrolling to keep a check on crime and ensure safety of women.
There’s focus on promoting biking as well, via special events such as Hero Dirt Biking Challenge (HDBC). The company recently concluded the first edition of this event, which witnessed participation from riders and enthusiasts across the country. The event was spread over a period of 120 days, covered 41 cities and had 1 lakh registrations. Asad Khan was announced as the off-Road Riding Champion in this year’s event. The complete story will be aired soon on MTV and Voot.