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Hero MotoCorp’s sales drop by 4 per cent in May: Know-why?

Hero MotoCorp's sales performance in May 2024 presents a mixed picture. While there is a noticeable decline in monthly sales figures, the company's overall growth in the early months of FY25 and significant increase in exports suggest positive momentum.

Edited By: Saumya Nigam @snigam04 New Delhi Published on: June 02, 2024 15:21 IST
Hero MotoCorp, tech news, india tv tech
Image Source : REUTERS Hero MotoCorp’s sales drop by 4 per cent in May

Hero MotoCorp, a two-wheeler manufacturing giant reportedly sold around 498,123 units of motorcycles and scooters in May 2024, marking a 4.1% decline in sales, when compared to the previous year’s sales number, which was 519,474 units. The drop in monthly sales indicates a challenging period for the company in the short term.

Growth in fiscal year 2025

Despite the dip in May, Hero MotoCorp has been experiencing significant growth in the first two months of the fiscal year 2025 (FY25). The company sold 1.031 million units in total in April and May 2024, which is an increase of 12.6% from the 915,581 units sold during the same period last year. 

Hero MotoCorp stated, "The company has sold 1,031,708 units in the first two months of the financial year FY25, registering a growth of 12.6% over the corresponding months (Apr-May’23) when the company sold 915,581 units.”

Motorcycle and scooter sales

In the motorcycle segment, it was reported that the company sold 471,000 units in May 2024, which reflected around a 3.7 per cent decrease from the 489,000 units which were sold in May 2023. 

The scooter segment further faced a sharper decline, with sales dropping nearly 11 per cent to 26,937 units in May 2024, compared to 30,138 units in 2023.

Sales comparison: Domestic vs export 

Domestic sales also witnessed a downturn, with a 5.7 per cent decline year-on-year. The company reportedly sold 479,000 units in the domestic market in May 2024, down from 508,000 units in May 2023. 

However, Hero MotoCorp witnessed a substantial increase in exports, which grew by 67 per cent. In May 2024, the company exported 18,673 units, compared to 11,165 units in May 2023, which indicated strong growth in international markets.

Joining ONDC network

In a strategic move, Hero MotoCorp has also become the first automotive company to join the government-run Open Network for Digital Commerce (ONDC) Network. This initiative aims to enhance the company's digital presence and streamline its operations within the evolving e-commerce landscape as well.

Hero MotoCorp's sales performance in May 2024 showcased a mixed picture, which has a noticeable decline in monthly sales figures. The overall growth of the company in the early months of FY25 and further has a significant increase in exports which suggests a positive momentum. 

The decision to join the ONDC Network further indicates a futuristic strategy to leverage digital commerce for future growth.

ALSO READ: Hero MotoCorp becomes first automotive company to join government's ONDC network

INPUTS FROM IANS

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