Hero MotoCorp has announced sales results for March 2020 and like every other automaker in India has posted a decline in total sales. This de-growth could be seen both in terms of domestic sales and exports. This steep drop in volumes could not only to the general slow down across the auto industry over the past several months but also due to the upgrade to BS6 emission standards and could also be attributed to the coronavirus lockdown.
While total sales of Hero MotoCorp in March 2020 touched 3,34,647 units, this figure had stood at 5,81,279 units in March 2019. Taking only domestic sales into account, sales dipped 42.7 percent to 3,16,685 units, down from 5,53,302 units sold in March 2019. Exports dipped 35.7 percent to 17,962 units in the past month as against 27,977 units exported in March 2019.
Hero MotoCorp March 2020 Sales and Exports
| Hero | Mar-20 | Mar-19 | Diff | % |
|---|---|---|---|---|
| Motorcycles | 3,05,883 | 5,35,943 | -2,30,060 | -42.93 |
| Scooters | 28,764 | 45,336 | -16,572 | -36.55 |
| Total | 3,34,647 | 5,81,279 | -2,46,632 | -42.43 |
| Domestic | 3,16,685 | 5,53,302 | -2,36,617 | -42.76 |
| Exports | 17,962 | 27,977 | -10,015 | -35.80 |
Hero’s motorcycle sales dipped 42.9 percent to 3,05,883 units down from 5,35,943 units sold in March 2019. Scooter sales dipped 36.6 percent to 28,764 units in the past month, as against 45,336 units sold in the same month of the previous year. Sales volumes also dipped for FY2020 with an 11 percent decrease in sales to 64,09,719 units as compared to sales of 72,39,460 units sold in the same period of the previous year.
Naveen Chauhan, Head of Sales and After Sales has confirmed that the company has managed to liquidate most of their BS4 stocks despite challenging conditions in the country. The left over BS4 models could be exported to Latin American or African countries where emission norms are not so stringent.
Hero MotoCorp FY 2020 Sales and Exports
| Hero | FY 2020 | FY 2019 | Diff | % |
|---|---|---|---|---|
| Motorcycles | 59,90,349 | 70,80,781 | -10,90,432 | -15.40 |
| Scooters | 4,19,370 | 7,39,958 | -3,20,588 | -43.33 |
| Total | 64,09,719 | 72,39,460 | -8,29,741 | -11.46 |
| Domestic | 62,31,458 | 76,12,683 | -13,81,225 | -18.14 |
| Exports | 1,78,261 | 2,08,056 | -29,795 | -14.32 |
The company has also shut down its global operations due to the COVID-19 pandemic and has announced a donation of Rs.100 crores. Of this an amount of Rs.50 crores is to be spent on relief efforts while the balance is being contributed to the PM Cares Fund. Hero MotoCorp is also actively involved in distribution of meals to migrant workers and homeless families across the regions of Delhi-NCR, Rajasthan, Haryana, Uttarakhand, Andhra Pradesh and Gujarat. Ration kits are being distributed to families in Delhi, Maharashtra and Kerala.
The company has also assured all chain partners and suppliers of full support during this period in terms of prioritizing payment processes while Hero MotoCorp has already paid contractual workers salaries in full for the month of March 2020 despite plant shut downs.
Source: Bike - rushlane.com
