The two-wheeler maker reported a 35% rise in its domestic wholesales at 7.91 lakh units
'A positive turnaround in customer sentiments have enabled the company to achieve record numbers during the auspicious festive period,' the company said
Hero MotoCorp Ltd on Sunday reported a 34.77% year-on-year rise in its domestic wholesales for October to 7,91,137 units due to robust recovery in sales of entry-level motorcycles in rural and semi-urban markets after the easing of lockdown measures. Overall, HeroMotoCorp registered its highest ever monthly sales of 8.06 lakh units in October 2020.
The country's largest two-wheeler maker also increased inventory at dealerships expecting good retail sales during the Diwali festival.
On a sequential basis, the company's dispatches were higher than 6,97,293 units in September and 5,68,674 units in August. The New Delhi-based manufacturer restarted operations at its Haryana and Uttarakhand factories from 5 May, selling 1,20,000 units in the month.
In October, dispatches of motorcycles, including exports, increased 32.5% to 7,32,498 units while that of scooters rose 59.6% to 74,350 units.
Hero’s exports jumped by 28.14% to 15,711 units during the month.
“A positive turnaround in customer sentiments – particularly for motorcycles across markets, continued government policy support and a credible resumption of supply chain, logistics and business operations have enabled the company to achieve record numbers during the auspicious festive period," the company said in a statement.
To offset the increase in commodity cost the company has raised prices of its vehicles by 2%, across the product portfolio.
In July, Mint had reported that expecting sales recovery to continue, especially in rural and semi urban markets, during the upcoming festival season, Hero plans to increase production to 6.5 lakh units or more from September.
Investors have been bullish about near-term prospects of the Pawan Munjal-led company since it is likely to benefit from a shift in preference to entry and executive segment motorcycles because of a quicker recovery in demand in rural areas and increasing preference for personal mobility on fears of contracting infection.
Despite witnessing decent recovery in retail sales, automakers like Hero MotoCorp are struggling to ramp up manufacturing due to disruption in supply chain network. Regional lockdowns due to rising covid-19 cases and increased inspection of imported parts from China have also added to their production woes.
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