Hero MotoCorp Rides High on Rural Market Growth, Achieves Record Sales During Festive Season

29 Nov 2023 , 03:01 PM

Hero MotoCorp CEO, Niranjan Gupta, notes that rural markets displayed strong growth during the festive season, with a 26% growth in the secondary network, primarily in tier II and III cities and rural areas.

The company witnessed an overall 20% YoY jump in sales, reaching a record 1.4 million units during the festive period, with positive sentiments in key urban centers.

Hero MotoCorp experienced a 10-fold increase in e-commerce sales and achieved the highest retail finance penetration at 68%.

Motorcycle, scooter, and moped sales in the local market increased by 6.6% YoY to 10.64 million units between April and October. Two-wheeler retail sales in India increased by 20% YoY to nearly 3 million units between Navratri and Bhai Dooj. The festive retail sales helped Hero MotoCorp reduce channel inventory to its lowest level in over three years.

Hero MotoCorp stock outperformed the Nifty50 Index by 22% in the past six months, reaching a five-year high of Rs 3,627.50. Hero MotoCorp CEO expects the positive trend to continue with the upcoming marriage season and a good harvest.

The company will continue to focus on expanding its core entry-level motorcycle segment and introducing new models, including electric vehicles. Gupta emphasizes the growth potential in India’s diverse markets, stating, ‘India is a story of many Indias.’

Hero MotoCorp is revamping its existing stores to ‘Hero 2.0’ format to provide a more premium experience for customers. The company is prioritizing the top 10 international markets for rapid scale-up while maintaining efficient operations in other markets.

Hero MotoCorp is currently present in over 47 countries, and international business is expected to become a growth engine for the company.

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