Hero MotoCorp - September 2012 Sales Update - Eastern Financiers

Hero MotoCorp, the company that marked degrowth during the preceding months of July and August 2012 amid challenging environment where erratic monsoon rains, rising petrol prices and high interest rates affected retail sales in the rural and urban areas-aggravated during the month of September marking slowdown in sales, with sales of below 5 lakh units at 404787 units against 549625 units being sold in September last fiscal, observing de-growth of 26.35%. The company however clocked sales of five lakh plus units for eleven consecutive months till June 2012 before slipping below that level since July 2012.

Commenting on the sales performance, Mr.Anil Dua, Senior Vice-President (Marketing & Sales) of Hero MotoCorp Ltd said that, "The sales number of September reflects the prevailing market sentiment in the automobile industry. The upcoming festive season is expected to improve the overall disposition of the market, and they expect the industry to get back on the growth path with the festive season demand coming in." He even added that, the company has a comprehensive marketing and customer engagement plan lined up for the festive season in October and November and has ensured sufficient stocks across dealerships to meet the expected market demand.

The overall cumulative sales of the company during the April- September period of FY2013 stayed a little below the 3 million mark with sales of 2975097 units against 3073892 units in April-September FY12- impugning itself with de-growth of 3.21% over last fiscal.

Source : Equity Bulls

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