Hero Splendor was the no 1 selling two wheeler in the company line-up for Sep 2020
Hero MotoCorp reported sales of 7,15,718 units in September 2020, its highest in a year that’s been unprecedented, and like never before. Sales grew at 16.91 percent having gained volume of 1,03,514 units from 6,12,204 units sold in September 2019.
Of this motorcycle sales takes the lion’s share of 6,60,948 units. Hero offers a range of mass market commuter motorcycles, and given the current unavailability of public transport, a small cc motorcycle seems a good bet. Sales grew 18.30 percent at volume gain of 1,02,252 units from 5,58,696 units sold a year earlier. Splendor was once again the no 1 selling Hero.
Scooter sales gained 2.36 percent, up at 54,770 units from 53,508 units. Hero’s domestic market sales being its stronghold accounts for 6,97,293 units at 16.12 percent growth, up from 6,00509 units. Exports growth is reported at 57.55 percent up at 18,425 units from 11,695 units.
Price Increase
Hero announced that from today, October 1, 2020, the company has made a price revision of upto 2 percent across its product range to offset rising input costs and commodity prices. At present, Hero is working at almost 100 percent production capacity and almost all its dealerships are open.
While sales is looking up, the lull experienced at the start of FY21 has created a creator that’s going to be hard to fill by the end of the FY. The only thing to look forward would be to see how much of that gap Hero MotoCorp can cover in the remaining 6 months. Being the largest two-wheeler manufacturer means the brand’s sales decline is in lakhs now at almost a third down.
April – September 2020 sales
April – September motorcycle sales decline is reported at 32.61 percent, down at 22,07,055 units from 32,75,035 units sold in the same 6 month last year. The deficit stands at 10,67,980 units. Scooter sales decline for the period is reported at 34.09 percent. Sales fell to 1,70,896 units, down 88,409 units from 2,59,305 units sold in the same 6 months in 2019.
Total domestic sales decline is pegged at 32.84 percent. Sales fell to 23,11,254 units from 34,41,517, lower by 11,30,263 units. Exports have declined by 28.15 percent, down at 66,697 units from 92,823 units. Total sales for YTD FY21 is pegged at 23,77,951 units, down 32.72 percent from 35,34,340 unit sold in the same six months a year prior. Sales is currently trailing by 11,56,389 units. Sales slowdown is attributed to total business shut down through April, and restarting of operations in May 2020 in a phased manner.
MoM Sales
Alongwith YoY growth, the manufacturer posted MoM sales growth of 16.9 percent, up from sales of 6,12,204 units the month earlier (Aug 2020). While manufacturers continues to deal with disruption in its network components supply chain owing to labour shortage, and logistics, Hero MotoCorp sold 18,14,683 units in the Q2 FY21 (July-September) at 7.3 percent YoY growth., up from 16,91,420 units sold in Q2 FY20.
Hero MotoCorp remains cautiously confident of the potential of the ongoing festive season with peak festival season in October and November. The manufacturer looks forward to yet another month of high retail sales.
