Hero Moto records 15% retail sales growth in 17 days of festival season

High demand for entry-level vehicles in this period: CGO Ranjivjit Singh

Hero MotoCorp, India's largest two-wheeler maker, on Thursday said its retail sales have grown by 15 per cent during the first 17 days of the festival season this year as compared to the same period last year amid high demand for entry-level motorcycles.

The wholesales of Hero’s entry-level motorcycles (75cc-125cc) — which comprises brands such as Passion, Glamour and HF Deluxe — did not show significant growth in the first half of the financial year, according to the SIAM data.

In the 75cc-110cc segment, there was a marginal year-on-year (Y-o-Y) volume growth of only 0.34 per cent, with a total of 2.148 million units sold.

In the 110cc-125cc segment, the volume sales witnessed a notable decline of 10.46 per cent Y-o-Y.

In the post results call with analysts, Ranjivjit Singh, chief growth officer, Hero MotoCorp, said the company has prepared well for the anticipated “bounce back of demand” during the festival season. 

The festival season for auto companies commences with the first day of Navratri and culminates with the celebration of Diwali. This year, Navratri began on October 15.

The company's dealers have increased their stock levels in anticipation of high sales during the festival season. Singh said the inventory levels will come down to 4-6 weeks once the festival season is over. 

The company has been working on the strategy of “growing the core market”