Hero MotoCorp has reported negative growth for December, a 3.9 per cent decline in its total sales at 453,985 units. In comparison, the company sold 472,731 units in the corresponding month last year. The two-wheeler brand blamed the increased two-wheeler insurance cost as the reason behind the fall.
Speaking about the year-on-year sales performance for the month of December, Pawan Munjal Chairman, Hero MotoCorp said:
The increased cost of two-wheeler insurance ahead of the Diwali festive season and the prevailing liquidity crunch in the market impacted the overall momentum of growth in the industry during the entire third quarter.
Meanwhile, the year to date cumulative sales of the company during the April-December 2018 period rose to 6,037,901 units. In the calendar year 2018, Hero MotoCorp crossed the 8 million sales mark, clocking 8,039,472 units of motorcycles and scooters.
The Splendor continued to outperform the Honda Activa as India’s highest selling two-wheeler for the third consecutive month in November. The Splendor registered sales of 2,25,536 units in November 2018 while the Honda Activa clocked 2,18,212 units.
The company hopes to boost sales in the scooter segment with two new launches this year. The Destini 125 has already arrived at an ex-showroom, Delhi price tag of INR 54,650 for the Lx variant and INR 57,500 for the Vx variant while the Maestro Edge 125 will follow in a few weeks. Hero MotoCorp has planned to challenge Honda's dominance by doubling its scooter portfolio to six models by the end of 2019, so a third new scooter is set to follow.
The company is looking for better results in the premium motorcycle space and has launched the Xtreme 200R at competitive prices in the Indian market. Hero MotoCorp will within 3 months launch the Xpulse 200 duo to expand its offerings in the segment.