Hero MotoCorp reported positive growth in monthly and year-on-year sales in August 2020, as the industry recovers from the Coronavirus pandemic. The world's largest two-wheeler maker reported a total sale (domestic + exports) of 584,456 units last month, witnessing a growth of 7.55 per cent over August 2019. The company's month-on-month sales also increased by 13 per cent over July 2020, when the company sold 514,509 units. It needs to be noted that Hero MotoCorp and by extension the two-wheeler sector was going through a lull period last year and sales in August 2019 were already down by 20.6 per cent. However, it is heartening it to see the manufacturer reporting sales growth once again as the two-wheeler sales head towards course correction.
Hero MotoCorp's domestic sales for August 2020 hiked by 8.5 per cent with 567,674 units sold, as against 524,003 units sold in August last year. Exports for the company, however, did see a significant drop of 18.6 per cent in overall volumes. Hero shipped 15,782 two-wheelers last month, as against 19,403 units a year before.
In the motorcycle space, Hero's sales in August 2020 stood at 544,658 units, an uptick of 9.2 per cent over the same period last year. Meanwhile, scooter sales stood at 39,798 units last month witnessing a decline of 11.28 per cent, as compared to 44,859 units sold in August 2019.
That said, Hero MotoCorp said that it is witnessing a strong retail off-take and is operating in a pull market with rural and semi-urban centres driving demand. With the festive season coming up, the company anticipates a similar growth trajectory along with increasing customer confidence and government policy support. Hero says that is now operating at nearly 100 per cent production capacity while all its customer touchpoints are open amidst the new normal.