Shares of the world’s largest two-wheeler manufacturer Hero MotoCorp rose 9.2% to hit an all-time high of Rs 555 after the company reported a 22% year-over-year growth in its two-wheeler sales. The company sold 433,598 units against the 356,690 units sold in the same period a year ago, according to a press release.
The motorcycle sales contributed the most to the growth. The company sold 402,056 motorcycle units in January.
The company’s shares in the last five days have risen 5.66%, 57.52% in the last six months, 77.34% in the last year, and 60.45% in the last five years.
The sectoral index Nifty Auto has gained 5.4% in the last 30 days, 25.5% in the last six months, 46.2% in the last year, and 130% in the last five years.
“India’s leading carmakers reported their best-ever monthly sales in the local market…,” said Elara Capital in a research note.
“The overall auto wholesales have registered an increase in volumes in January 2024 on a monthly basis. The recovery appears to have been significantly high in the passenger vehicles (PV) segment due to a low base, strong growth in SUV volumes, and a revival in the entry-level segment for Maruti. Post the festive season, the OEMs had focused on cutting down dealer inventory in November and December, and hence there was adequate room to replenish dealer stock from January 2024 onwards. Two-wheeler OEMs showed robust growth owing to the premiumization trend and an uptick in rural sales driven by the wedding season,” said Dhruv Mudaradi, research analyst at StoxBox.