Hero MotoCorp has gone from strength to strength this festive season despite Covid-19 pandemic related disruptions. Only in March this year, the world shut down to keep Covid-19 at bay. This meant businesses came to a standstill with no sales activity for weeks at an end.
The positive outcome of this planned slowdown meant usual sales were delayed and that has meant businesses have now had the opportunity to meet this pent up demand. Add to this, a robust festive season, and most manufacturer have been able to post sales growth.
Hero MotoCorp 2020 festive season
Hero MotoCorp being the biggest automaker in India has sold a whopping 14 lakh two-wheelers this festive season. Retail sales off-take calculated is for a 32-day festival period, starting from first day of Navratra and concluding the day after Bhai Duj.
To put this in perspective, festive season volumes in 2020 is at 98 percent of 2019, which is almost back to normal despite these strained times. This also means on a MoM basis, the company has continued to gain market share and strengthen its top position.
The recent round of hyper sales was more than necessary considering the slowdown earlier, and also the fact that there's rather little time left for the calendar year to end if the company has any hope of posting anywhere next to decent sales for the 12 month period ending in December. Sales is at 103 percent as compared to the same period in 2018.
Sales this season has helped Hero MotoCorp reduce vehicle stock at dealerships to less than four weeks, its lowest ever post-festive inventory. Festival season retails were driven by its strong line of motorcycles including Splendor and HF Deluxe, 125cc motorcycles Glamour and Super Splendor, and the Xtreme 160R, and XPulse range in the premium segment. Glamour BSVI gained volumes in new markets. Destini and Pleasure scooters too secured double-digit growth.
Hero MotoCorp MoM sales
Hero MotoCorp has consolidated domestic market share since resumption of plant operations and retail sales in early May. Market share grew by more than 500 bps in October 2020. Hero owes this to robust planning and prep across the spectrum, including dealer partners. Activity has been heightened despite disruptions in the supply chain of components, plant operations and customer touch points once business restarted in may 2020.
Hero MotoCorp has relied on strict protocols and measures to ensure safety of all stakeholder groups involved. With news revolving around rapid development of Covid-19 vaccines, the global economy could bounce back in the months to comes. Positive forecast by International Monetary Fund (IMF) projectis close to double-digit growth for Indian economy in FY'22. This could boost customer sentiments in general.