Auto Sales July 2024: Hero MotoCorp Sales Decline

Hero MotoCorp's sales performance has seen a significant decline on a month-on-month basis. The company's total sales dropped by 26.45% to 370,274 units, down from 503,448 units in June 2024. This could be attributed to the monsoons resulting in reduced footfalls at showrooms, contributing to the decline. However, the shift towards scooters is due to the practicality aspect and this has led to a relatively lesser decline of 1.11% in scooter sales, compared to a 28.07% drop in motorcycle sales. 

On a year-on-year basis, Hero MotoCorp's sales showed a moderate decline of 5.38% in July 2024. The drop is not as significant as the month-on-month decline. Exports have shown a promising increase of 13.10% compared to last year. The company's efforts to revamp its product portfolio and expand its global footprint are expected to yield positive results in the coming months. Hero recently expanded into Southeast Asia, particularly in the Philippines. Read more about it.

Hero MotoCorp's year-to-date sales for FY'25 have shown a positive trend, with total sales increasing by 9.3% to 1,905,430 units, compared to 1,743,884 units in the same period last year. Motorcycle sales have driven this growth, rising by 9.7% to 1,781,346 units, while scooter sales have also seen a modest increase of 2.9% to 124,084 units. Domestic sales have contributed significantly to this growth, rising by 8.5% to 1,831,697 units, while exports have seen a notable increase of 32.9% to 73,733 units, indicating a strong demand for Hero's products in international markets.

Also read: 2024 Hero Xtreme 160R 4V Launched At ₹1.38 Lakh

To improve sales, Hero MotoCorp needs to expand its product portfolio. The company should focus on improving its premium offering, beyond the Xpulse 200. There has been speculation about the Hero Xpulse 210 happening and a 400cc adventure bike is also on the plan. Hero should also strengthen its commuter segment with robust products. Relying solely on the Splendor may not be enough, especially with Bajaj's CNG commuter motorcycle entering the market. By addressing these gaps, Hero can better compete and attract a wider range of customers.