Hero MotoCorp records 12% YoY drop in Dec. auto sales

Hero MotoCorp sold a total of 394,773 units of motorcycles and scooters in December 2021, which is lower by 12% as compared with 447,335 units sold in December 2020.

However, the company's total motorcycle and scooter sales have risen by 13% over the month of November 2021 when it had sold 349,393 units.

While domestic sales fell by 12% to 374,485 units, exports declined by 9% to 20,288 units in December 2021 over December 2020.

The company said that it continues to monitor the on-ground situation, although localized restrictions imposed by certain states in the wake of rising Omicron cases will continue to restrict the customer movement.

Hero MotoCorp sold 2.89 Lakh units of motorcycles and scooters in its markets spread across Asia, Africa South and Central America and the Caribbean in calendar year 2021 (January-December), clocking a robust growth of 71% over the corresponding period in the previous year (2020) when it had sold 1.69 Lakh units in its markets outside of India.

The company will unveil its first Electric Vehicle (EV) in March 2022. The vehicle will be produced at the company's manufacturing facility at Chittoor in the southern Indian state of Andhra Pradesh.

Hero MotoCorp is the world's largest manufacturer of motorcycles and scooters, in terms of unit volumes sold by a single company in one year, the coveted position it has held for the past 20 consecutive years. The company has sold more than 100 million motorcycles and scooters in cumulative sales since its inception.

On a consolidated basis, Hero MotoCorp's net profit dropped 22.4% to Rs 747.79 crore on a 9.9% decline in net sales to Rs 8,538.85 crore in Q2 September 2021 over Q2 September 2020.

The scrip rose 0.68% to currently trade at Rs 2477.95 on the BSE.

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