Hero MotoCorp shares fall 3% after temporary production halt at four plants

Production will be temporarily paused from April 17 to April 19 at four manufacturing plants

Shares of Hero MotoCorp fell over 3 per cent on Thursday after the company halted production temporarily at four manufacturing plants. 

 

Hero MotoCorp's stock fell as much as 3.1 per cent during the day to an intraday low of ₹3,664.3 per share, the biggest intraday loss since April 7 this year. The stock pared gains to trade 2.4 per cent lower at ₹3,690 apiece, compared to a 0.02 per cent decline in Nifty 50 as of 11:13 AM. 

 

Shares of the company extended losses to their second day on Thursday. The stock has fallen 11.5 per cent this year, compared to a 1.01 per cent fall in the benchmark Nifty 50. Hero MotoCorp has a total market capitalisation of ₹73,687.9 crore, according to BSE.  

 

Production pause

 

In an exchange filing on Wednesday, the two-wheeler manufacturer said that production will be temporarily paused from April 17 to 19, 2025, at four manufacturing plants: Dharuhera, Gurugram, Haridwar, and Neemrana. This is done as the company navigates a short-term supply alignment, it said. 

 

"During this planned pause, we are taking the opportunity to carry out maintenance, upkeep, and facility enhancements to further strengthen our operations," Hero MotoCorp said in the statement. Tirupati and Halol plants will continue to operate during this time, it said, adding that the pause will not impact the ability to meet retail demand across the domestic and international markets.  

 

About Hero MotoCorp

 

Hero MotoCorp maintained its leadership in two-wheeler retail sales last fiscal with sales of over 54 lakh units amid enhanced competition in the vertical, as per the latest FADA data. Honda Motorcycle & Scooter India took second spot with sales of over 47,89,283 units.

 

Hero MotoCorp sold a total of 54,45,251 units last fiscal with a market share of 28.84 per cent as compared with a market share of 25.37 per cent for the Japanese two-wheeler maker, according to the automotive dealer body FADA. 

 

The company's profit increased 12 per cent to ₹1,203 crore in the three months to December 31. Hero's motorcycle and scooter sales grew just 0.3 per cent in the quarter, marking their weakest growth since July-September 2022. The two-wheeler maker now expects double-digit revenue growth next fiscal, riding on the back of continued investments in new products and segments.