Hero MotoCorp Q2 Profit Declines 22 Per Cent, Confirms EV Launch By March Next Year

Hero MotoCorp reported a 22.4 per cent decline in consolidated profit to Rs. 747.79 crore for the second quarter of the 2022 financial year. In comparison, the manufacturer had reported a profit of Rs. 963.82 crore in Q2 FY2021, the company said in a statement. The company's revenue from operations stood at Rs. 8538.85 crore in the quarter between July and September 2021, as opposed to a figure of Rs. 9473.32 crore during the same period last year. Hero MotoCorp sold a total of 14.38 lakh units during the previous quarter. The company also announced that its first electric offering will arrive by March 2022.

Also Read: Two-Wheeler Sales October 2021: Hero MotoCorp Sales Skid 32%

Niranjan Gupta, CFO - Hero MotoCorp, said "Hero MotoCorp expects a build-up in demand over the coming quarters as the economy continues to show recovery and improvement. Positive economic signs, encouraging farm activities and increased need for personal mobility is likely to restart the momentum in the two-wheeler industry and we expect positive sentiments both in the rural and semi-urban markets."

Hero MotoCorp's first EV will be an electric scooter that will be launched in March 2022

"Commodity prices, which have been impacting the industry margins so far, are showing some signs of softening as we move from here. Through accelerated Leap-II savings program, overheads management, and judicious price increases, we have been able to improve our margins sequentially and expect further recovery moving forward," he added.

Also Read: Hero MotoCorp Teases Upcoming Electric Scooter At Its 10th Anniversary Celebrations

Confirming details about the upcoming EV, Hero MotoCorp said that the electric vehicle is in the advanced stages and the product will be manufactured at its Chittoor plant in Andhra Pradesh. Dubbed as the garden factory for its eco-friendly and sustainable manufacturing process, the company says the facility will provide an integrated ecosystem for battery pack manufacturing and testing, vehicle assembly and vehicle end of line testing (EOL).

Hero MotoCorp has partnered with Taiwan's Gogoro to accelerate its EV development. The company is also working with Ather Energy for its connector tech. The manufacturer's first offering will be an electric scooter and the company teased the model earlier this year.