India's largest two-wheeler maker Hero MotoCorp reported a 26% increase in total sales in October 2023 to 574,930 units, compared to 454,582 units in the same month last year. This strong growth comes as a relief for the company after two consecutive years lacklustre sales due to the pandemic and high inflation.
Most of the sales continue to be in the form of motorcycles. The company sold 529,341 motorcycles in October 2022, a 26% increase over 419,568 motorcycles sold in October 2021. Scooter sales saw an even larger 30% growth to 45,589 units compared to 35,014 units in the same period last year.
The October 2023 sales growth indicates stabilizing demand. The company has been hit by volatile demand and sales due to an economic slowdown that has gripped rural India ever since the pandemic as well as financial stress in lower middle class income groups in urban areas.
High fuel prices and uncertain rainfall has also been weighing on consumer sentiment.
To boost demand, Hero MotoCorp has refreshed its product portfolio over the past year with the launch of new premium offerings such as the XTEC variant of its popular Splendor motorcycle, the new Xoom scooter and the Harley Davidson-Hero X440 premium bike. The company is also accelerating its electric vehicle plans, with the first model expected to hit showrooms next year.
The company said it started deliveries of Harley-Davidson X440, on the first day of the Navratri festival. Under the mega deliveries drive, 1,000 units were sold across 100 dealerships in India, it said.
The positive October sales momentum sets the tone for a recovery in demand during the festive season that accounts for a large chunk of annual two-wheeler sales. With inflationary pressures easing and rural sentiment also showing signs of improvement, Hero MotoCorp will be hoping to sustain this sales growth over the coming months.