Hero MotoCorp’s sales drop 14% in July; attributes decline to incessant rains

Hero MotoCorp has reported its sales for July 2023 and the company sold 391,310 units last month. The manufacturer witnessed a stark drop of 14.41 per cent in year-on-year volumes when compared to 421,288 units sold in July 2022. The world’s largest two-wheeler maker by volumes said that the low numbers were “reflective of the inclement weather conditions" last month.

Unprecedented rains and floods in several parts of the country, prompted a sharp decline in customer footfalls, Hero MotoCorp said in a statement. The incessant rains and floods damaged crop in several states, majorly affecting the rural economy. Hero has a stronghold in the rural sector with the 100-125 cc segment being its major growth driver.

The previous month also saw Hero divert focus attention on premium offerings with the launch of the Harley-Davidson X440, the first offering to come from the Hero-Harley collaboration. The company announced that it received a strong response for the most affordable Harley and the booking window is set to close on August 3, for the first batch of customers. Furthermore, Hero expanded its premium product range with the launch of the Xtreme 200S 4V towards the end of July. The new 4-valve Xtreme 200S packs more power and new colours.

Hero is optimistic about August with the advent of the festive season in the coming weeks. The company is all set to launch the Karizma XMR 210 towards the end of the month, while attractive finance schemes and offers for its existing product range should help improve market demand in the coming months.

On a related note, the Enforcement Directorate (ED) raided the residence of Hero MotoCorp’s Executive Chairman Dr Pawan Munjal on August 1. The officials also “visited two of Hero’s offices in Delhi and Gurugram," the company informed in a regulatory filing. Hero further said that it will “continue to extend all cooperation to the agency."

Reportedly, the Ministry of corporate affairs (MCA) ordered an investigation against Hero MotoCorp in June this year over allegedly breaching the corporate governance norms. The raid was carried out in accordance with provisions of the Prevention of Money Laundering Act (PMLA).

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