Hero MotoCorp records a marginal decline in sales in January

Hero MotoCorp has registered a 0.4 per cent decline in sales in January 2015, as compared to the same period in 2014. The decline in the numbers has been attributed to the two-day long transporters’ strike, which had affected the company’s deliveries across the country. 

Despite the setback, Hero MotoCorp sold over 5.58 lakh two-wheelers in the last month, helping it maintain its position of the top two-wheeler manufacturer in the Indian market. The Delhi-based manufacturer had a good run in 2014 as it recorded its highest ever sales for any calendar year, by selling over 66.45 lakh two-wheelers. Of these, Hero MotoCorp shipped off over two lakh two-wheelers to its other global markets in the calendar year 2014, which is 50 per cent more than the company’s exports in 2013. 

Yesterday, Hero MotoCorp also released their financial data for the third quarter of this financial year. With an overall sale of 16.48 lakh units, Hero MotoCorp reported a total turnover of Rs 6,839 crore in the October 2014 to December 2014 period. While this turnover was less than the Rs 6,876 crore the company had managed during the same period in 2013, the company’s vice chairman, CEO and MD, Mr Pawan Munjal continues to maintain a positive outlook for 2015. 

Speaking about their performance in the previous quarter, Mr Munjal said, “As always, it was yet another action-packed quarter for us. We continue to make investments as we pass through a phase of global expansion, capacity enhancement and brand building and these added expenses have impacted our margins in the third quarter. We believe that these are investments which will yield the desired results in the long term as we relentlessly strive to consolidate our leadership. While sentiments are already high with the central government expected to revive the economy, the other factors such as interest rates, retail inflation and the likely changes in global economy will also play a role in determining the industry growth in the coming quarters.”