Hero MotoCorp has reported 17.29 percent and 2.78 percent growth in domestic sales and exports respectively for Sep 2020
Hero MotoCorp, the country’s largest two wheeler maker has noted an increase both in terms of domestic sales and exports in the past month. Domestic sales surged 17.29 percent to 6,97,293 units, up from 5,94,524 units sold in Sept 19.
The two major contributors were the Splendor and HF Deluxe motorcycles with each recording sales well over the 2 lakh unit mark. Splendor sales were at 2,80,250 units, up 14.54 percent as against 2,44,667 units sold in the same month of the previous year with a current market share of 40.19 percent. HF Deluxe sales increased 10.82 percent to 2,16,201 units in the past month, up from 1,95,093 units sold in Sept 19 while market share stood at 31.01 percent.
Besides YoY sales increase, Hero Splendor and HF Deluxe sales also noted an increase in terms of MoM sales. Splendor sales had stood at 2,32,301 units in August 2020 with a MoM rise of 20.64 percent to 2,80,250 units in the past month and likewise HF Deluxe sales increased 22.03 percent from 1,77,168 units sold in August 2020 to 2,16,201 units in the past month.
Hero MotoCorp Xtreme 160R
Every two wheeler in the company lineup noted positive growth in the past month with the exception of the Pleasure and Maestro scooters. The new comer, Hero Xtreme 160R, introduced in June 2020 contributed to domestic sales with 12,930 units. The Xtreme 160R rivals the Bajaj Pulsar NS160, TVS Apache RTR 160 4V and Honda Hornet 2.0 in domestic markets and was initially priced at Rs.99,950 but prices have been recently increased to Rs.1,20,000 for the drum variant and to 1,05,050 for the disc variant.
Xpulse 200 also got impressive response. The Hero Duet scooter of which 7,478 units were sold in Sept 19 has since been discontinued and it is estimated that Hero MotoCorp could enter the electric 2W segment with launch of Duet/Destini electric scooters sometime in the future.
Hero MotoCorp Exports
Hero HF Deluxe and Splendor also noted outstanding performance in terms of exports. The company shipped 4,054 units of the HF Deluxe in the past month, up 140.17 percent as against 1,688 units shipped in Sept 19. Splendor exports stood at 3,832 units, up 8.13 percent as against 3,544 units exported in the same month of the previous year.
The Xtreme 150 (1,105 units) and Xpulse 200 (1,011 units) also contributed to total exports which stood at 11,665 units in Sept 20 as against 11,349 units exported in Sept 19. In the scooter segment, the Pleasure and Maestro contributed 248 units and 229 units to total exports. Pleasure exports dipped 34.04 percent as against 376 units exported in Sept 2019 while export numbers of the Maestro scooter increased 7.01 percent as compared to 214 units exported in Sept 2019.
Price Hike across BS6 portfolio
Hero MotoCorp has increased prices by 2 percent across its entire BS6 portfolio that includes Xtreme 160R, XPulse 200, Glamour 125 and Passion Pro citing rise in cost of production. The price hike is marginal ranging from Rs.760 on the Passion Pro to Rs.2,050 on the Xtreme 160R.
The company is optimistic to note increased sales over the festive months of October and November, especially in rural and semi urban markets, boosted by rising consumer sentiments and policy support from the Government of India.