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Business News/ Auto News / Hero MotoCorp manufacturing plants to remain shut for 4 days
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Hero MotoCorp manufacturing plants to remain shut for 4 days

Hero MotoCorp has been reducing its production due to decline in sales
  • The two-wheeler manufacturer said the shutting down of production is also related to demand
  • A worker cleans a bike inside a Hero MotoCorp showroom in Mumbai. (Reuters)Premium
    A worker cleans a bike inside a Hero MotoCorp showroom in Mumbai. (Reuters)

    NEW DELHI : Hero MotoCorp, India's largest two-wheeler maker, has closed all its factories for four days till August 18. In a regulatory filing, Hero MotoCorp said its manufacturing facilities will be closed from August 15 to 18, 2019. "While this has been part of the annual holiday calendar on account of Independence Day, Raksha Bandhan and the weekend, it also partly reflects the prevailing market demand scenario," the company said.

    The shutting down of production facilities is part of an annual routine and also to adjust production in line with current market demand. Hero MotoCorp further said production planning is a matter of advance monitoring of the market dynamics and prudent demand forecasting.

    "This helps us to plan our production well in advance, thereby enabling us to stay flexible both in terms of volumes and production schedules," it said.

    Hero MotoCorp has been reducing its production due to decline in sales. In the April-July period this year, the two-wheeler market leader's production was at 24,66,802 units, down 12.03 per cent from the year-ago period. In July alone, Hero's sales dropped by 21.18% to 5,35,810, as compared with 6,79,862 units in the year-ago period.

    Other two-wheeler manufacturers have also reported a double-digit drop in sales due to sluggish demand. Honda Motorcycle & Scooter India (HMSI)'s July sales dropped by 10.77%, Bajaj Auto reported a dip of 13%, TVS Motor Company 15.72% and niche bike maker Royal Enfield 22%.

    Hero MotoCorp had earlier said that the sluggish market environment prevalent in the first quarter has continued in the beginning of the second quarter as well and its impact is visible in the dispatch volumes. On outlook for the rest of the year, it had said that things would be dependent on multiple factors, including the progress of monsoon and festive season offtake, as well as improvement in the liquidity situation.

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    Published: 16 Aug 2019, 10:28 AM IST
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