Hero MotoCorp, India's largest two-wheeler maker, reported a 20 percent decline in domestic sales in February, with 3.57 lakh units dispatched, marking the fourth consecutive month of lower dealership dispatches. Sales had also dropped by 2 percent in January, 22 percent in December, and 8 percent in November.
- Hero MotoCorp's February sales dropped 20 percent, marking four months of decline.
- Motorcycle sales fell 19 percent, while scooter sales grew 14 percent.
- The company is shifting focus to premium motorcycles and scooters.
Hero sales decline: Details
Interestingly, retail sales of two-wheelers during the same period were on the rise, according to data from the Federation of Automobile Dealers Associations (FADA), showing growth of 16 percent, 11 percent, and 4 percent in each month. However, despite the positive retail trend, Hero MotoCorp opted to reduce its dispatches.
Automakers typically reduce dealership dispatches when their inventories exceed average levels or when the market outlook appears uncertain. Despite the declines, Hero MotoCorp remains optimistic about the long-term growth prospects of the two-wheeler industry. The company’s management confirmed that its inventory levels at the end of December were aligned with its desired target of four weeks at dealerships.
With ongoing sales pressure, Hero MotoCorp is facing increasing challenges to its market share in the domestic market. Meanwhile, Honda Motorcycles and Scooter India, has been steadily narrowing the market share gap with Hero MotoCorp in this financial year.
Hero MotoCorp’s share of domestic dispatches fell to 28.8 percent during the April-December period, down from 30.4 percent in the previous year. Data from FADA also shows a decline in market share to 29 percent in 2024, down from 31.3 percent in 2023.
Overall, Hero MotoCorp’s total two-wheeler dispatches, including both domestic and exports, fell by 17 percent year-on-year to 3.88 lakh units in February. However, exports saw a notable increase, rising by 33 percent year-on-year to 30,772 units.
The company saw the largest decline in motorcycle sales, which fell by 19 percent, while scooter sales grew by 14 percent. Traditionally strong in the entry-level motorcycle segment, Hero MotoCorp is now shifting its focus toward expanding its presence in the premium motorcycle and scooter markets.
On the electric vehicle front, Hero MotoCorp's Vida brand dispatched 6,200 electric scooters in February, marking progress in its EV efforts.
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