[RedTerrano]

Indian multinational two-wheeler company Hero MotoCorp Ltd witnessed the highest-ever sales in a single month in October 2020 after the company sold over 8 lakh motorcycles and scooters in this month alone. As per a statement issued by the company, Hero MotoCorp recorded a growth of 35 per cent as compared to the corresponding month of last years. In October 2019, the company had sold 599,248 units while this month 806,848 units were sold by the company.

Source:
https://www.opindia.com/2020/11/hero...lowdown-claim/

[fhdowntheline]

It is interesting that Hero MotoCorp achieves these sales numbers with a large but low-profile portfolio of product. I guess there isnt a single standout product that they have which is significantly better than its rivals, yet they sell well. Whereas other much hyped products dont do as well. They must be doing something right.

[srini1785]

Traditionally , Oct - Nov would see good sales in 2 wheelers due to Puja season. The other reason may be that in post corona world, there would be some who would want to ditch the crowded public buses and metros and into the safety of a 2 wheeler. So we need to see if similar trend is seen at TVS, Bajaj etc.

[GTO]

My God, the sheer scale boggles my mind! I always focus on car sales, but all the manufacturers together do 2 - 2.5 lakh cars. And here is a SINGLE brand selling 800,000 2-wheelers in one month. That's like almost 40,000 every working day . I'm impressed not just with Hero, but also with the size of the Indian market . This is a large, diverse, powerful country.

In case anyone was wondering, Honda sold 5.27 lakh two-wheelers in the same month.

[Axe77]

This is also a reflection of the current situation. Owning personal transportation has almost become a must due to the pandemic, lockdown, limited public transport or the risks of public transport etc. In some cases it is almost a pre requisite to be able to stay in gainful employment.

Personal Computers are the other product that have simply boomed in this pandemic - both for work and schooling reasons. Prices due to the skewed demand supply are totally through the roof.

[Sebring]

I see a lot of unsold bikes daily at the nearest Hero dealership. Are they after records, or is the economy really bouncing back? I do understand that there are wholesale

[mmxylorider]

Mind boggling numbers!! I suppose they are exporting as well so this could be global sales. Also in current situation, the need for a reliable inexpensive 2 wheeler to run errands might have boosted sales - although an Activa is better suited for hauling stuff. It would be an interesting exercise to slice/dice this data and get some pattern out of these numbers.

[nick.cs]

Originally Posted by mmxylorider

I suppose they are exporting as well so this could be global sales.

Export numbers are marginal. If i recollect correctly in the 15-20k range

I think Hero reports sales done to dealers. The reason for such a high number could be then Hero pushing inventory as Puja fell towards the end of the Oct and Diwali is pretty much in mid Nov.

A more correct number would be the Vahan database which shows 10.5 L 2Wheelers registered in October. Considering a few states are missing(AP, Telagana) , this number will increase. However as per post mentioned above only 2 players, Honda and Hero have done 13 L (5L + 8L) sales. Sales for Nov in Vaahan is approx 3L as of now. It would be interesting then to see the sales reported by these companies in Nov and Dec as company will eventually have to run down inventory at dealers as it is not sustainable.

[mmxylorider]

I was talking to a friend of mine and he said Hero ispushing incentives like crazy during the festive season. Down payment of Rs 2000 and Rs 1000 EMI till balance paid in full. A lot of laborers might have used this to their benefit. In addition, there have been Indian Railways modified goods trains used to transport vehicles to Eastern India. Maybe there is some connection there.

[nick.cs]

Now comes the dampner in the form of FADA report for the month of October -

Dealer Inventory for both 2W and PV are at its newest highs in this Financial Year. FADA requests all OEMs with a special request to 2W OEMs to assess the on-ground inventory level and curb production accordingly.

FADA once again cautions both OEMs and Dealers to keep a check on vehicle inventory as post festivals, demand may remain subdued. Since Inventory levels are at its highest during this Financial Year, it may impact Dealers financial health thus leading closures and job losses.

Complete FADA report is available in a separate thread - Source (October 2020 : Indian Car Sales Figures & Analysis)

Interesting to note that against 8L number given by Hero, registration is only 3.33L - 41% sales whereas in case of Honda registration is 2.92L against reported sales of 5.27L - 55% sales. For the sake of simplicity i am only considering the monthly wholesale sales reported and actual registration

[Rajeevraj]

Originally Posted by fhdowntheline

It is interesting that Hero MotoCorp achieves these sales numbers with a large but low-profile portfolio of product. I guess there isnt a single standout product that they have which is significantly better than its rivals, yet they sell well. Whereas other much hyped products dont do as well. They must be doing something right.

If we actually analyze product level sales of Hero from previous months we can see that almost 80% of these mind boggling sales comes from just 2 basic entry level products. The Hero Splendor and HF Deluxe. The levels of loyalty for 20+ year brand like the Splendor is amazing!

[TusharK]

Hero MotoCorp sold over 14 lakh units this festive season

Hero MotoCorp sold more than 14 lakh units of motorcycles and scooters in the 32-day festive period.



The total sales between the first day of Navratra and Bhai Duj were 98% of the festive season volumes sold by the company in 2019 and 103% compared to the same period in 2018.

Higher sales have enabled Hero MotoCorp to reduce the vehicle stocks at its dealerships to the lowest ever post-festive inventory of less than 4 weeks.

According to the bike maker, demand for models like the Splendor+, HF Deluxe, Glamour, Super Splendor, Xtreme 160R and XPulse range was high. The Glamour gained volumes in new markets, while the scooter segment also witnessed double-digit growth.

Since the resumption of plant operations in May 2020, Hero MotoCorp's market share has grown by more than 500 bps in October.

Link to Team-BHP News

[Diesel_Drives]

Originally Posted by TusharK

Hero MotoCorp sold more than 14 lakh units of motorcycles and scooters in the 32-day festive period.

The total sales between the first day of Navratri and Bhai Duj were 98% of the festive season volumes sold by the company in 2019 and 103% compared to the same period in 2018.

God only know when will we get any correct figures in this industry! Probably finding vaccine for current pandemic is easier than deciphering the figures OEMs' keep throwing at us.

> Their October 2020 sales (factory dispatches) were about 8,00,000+ units. Assuming they have informed to the world on 18.11.20 of 14,00,000 units milestone, so they have pushed out (factory dispatches again) another 6,00,000 units already by that date.

> Their plants would have been shut on occasion of Diwali/Vishkarma for minimum of 2-3 days.

> FADA sales figures suggest HMCL sold (actual retail sales) 3,33,563 units in October 2020. Even if this figure does not include states like AP, MP, TS etc, its safe to assume their final figure could be in range of 4,25,000 ~ 4,75,000 units

> There would be spill over from previous months at Dealers end (gap between the company dispatches and FADA sales figures)

And then we have their press release saying the following:

"Despite the severe disruptions on account of the Covid-19 this year, the good retail off-take during the 32-day festival period - spread between the first day of Navratra and the concluding day after Bhai Duj – was 98% of the festive season volumes sold by the Company in the previous year (2019) and 103% compared to the same period in 2018. This has enabled Hero MotoCorp to reduce the vehicle stocks at its dealerships to less than four weeks, the lowest ever post-festive inventory "

Leaves me pondering:

- If their best ever monthly dispatch was 8L units, and still they could ship another 6L units in next 14 days period of November, from how long before were they building and stocking up units in their plants?

- How much stocks would be dealers be left saddled with?? Assuming full month of October would have yielded only 4.25 ~ 4.75L sales out of the claimed 14L units dispatched.

And yet if HMCL is to believed, this would be "lowest ever post-festive inventory"