HERO MOTOCORP RIDES ON ROBUST SALES TO CLOCK 10% GROWTH IN Q1 OF FY’15

On Jul 2, 2014

Riding on sustained robust sales in the first quarter of (April-June) fiscal 2014-15, Hero MotoCorp Ltd (HMCL), the world’s largest two-wheeler manufacturer, today reported 10% growth over the corresponding quarter of the previous fiscal (FY’14).

Hero MotoCorp sold 17,15,129 units of two-wheelers in Q1 of this fiscal compared to 15,59,282 units sold in the corresponding quarter of the previous fiscal, thereby clocking a 10% growth.

Hero MotoCorp closed the quarter with robust sales of 541,594 units in June, 2014 – thereby registering a growth of 8% over the corresponding month in the previous year, when the company had sold 502,279 units. The company had sold 571,054 units and 602,481 units of two-wheelers respectively in the months of April and May this year.

In the month of June, Hero MotoCorp commenced production at its fourth manufacturing plant at Neemrana in Rajasthan and also started despatch from the plant to the market. With the commissioning of the plant, which has an installed capacity of 750,000 units, Hero MotoCorp now has a total annual installed capacity of 7.65 million units of two-wheelers.

Last month, the company also made its Global Parts Centre (GPC) at Neemrana operational. The state-of-the-art GPC has automated systems of storage and retrieval, automated packaging and sorting, on-line tracking of parts through Warehouse Management System (WMS), lean manufacturing and most importantly, the Green Building Concept.

Since the beginning of FY’15, Hero MotoCorp has sustained robust volume sales despite the overall sluggish industry environment. The recent extension of the current excise duty rate is expected to act as an impetus for the auto sector and hopefully, it will lift the industry sentiment. However, a sub-normal monsoon is likely to dampen demand both in rural as well as urban markets. The need of the hour, therefore, is a long-term, consistent and uniform excise policy for the benefit of customers and sustainable revival of the industry.