BackHero MotoCorp sees robust recovery in August wholesales as rural demand improves
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
PremiumNEW DELHI: Hero MotoCorp Ltd on Tuesday reported an 8.5% year-on-year rise in its domestic wholesales for August to 5,68,674 units due to robust recovery in sales of entry-level motorcycles in rural and semi-urban markets after the easing of lockdown measures.
On a sequential basis, the company's dispatches were higher than 5,14,509 units in July and 4,50,744 units in June.
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 August, dispatches of motorcycles, including exports, increased 9.2% to 5,44,658 units while that of scooters rose 12.7% to 44,859 units.
Overall exports fell 18.7% to 15,782 units during the month.
“With August marking another step forward in the market's recovery, the company cautiously anticipates sales to continue their upward trajectory with favourable factors such as the upcoming festive season, increasing consumer confidence and continued government policy support," the company said in a statement.
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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