The wholesale is not as much as the previous year, but we have been doing much better on retail sales, says Pawan Munjal , chairman and MD, Hero MotoCorp
Hero MotoCorp, which posted its lowest domestic sales during August in almost two years, said on Wednesday that it expects to make a strong comeback in the upcoming festive season. The market leader in the two-wheeler space will launch two new scooters in a few weeks time.
“In our case, clearly we have been trying to balance out the inventory in the market place. The wholesale is not as much as the previous year, but we have been doing much better on retail sales,” Hero MotoCorp chairman and managing director Pawan Munjal said, in response to queries on the company’s performance in terms of despatch sales in August.
Hero MotoCorp saw a sharp decline of 14% in its domestic sales for the month of August.
“Starting this month, we will start stocking up for the festive season. We are confident we will do very well in the festive season,” he said, adding that the company will launch two new scooters in a few weeks time.
Hero MotoCorp has faced strong competition from Honda Motorcycle and Scooter India which has emerged as the market leader in the scooter segment. “We would have liked to do much better in scooters but we haven’t,” Munjal said.
On the outlook for the industry, Munjal said the monsoon has been good in some parts and some parts haven’t had enough rains. “It will be a concern going forward,” he said. Since Hero MotoCorp is well spread out throughout the country in terms of sales, the company hopes to balance out the impact, he said.
On slowing sales, he said that with already six months gone it is “unlikely to look for a double-digit growth”.
On export strategy for the company, Munjal said the company is looking to enter new markets. “Over the next few months we are hoping to also get into some large markets, we are close to finalising distribution in Nigeria, Mexico and Argentina,” he said.
On the impact of Eric Buell Racing filing for bankruptcy, Munjal said that the process has started to bring back the product development of models that were underway.