Hero MotoCorp share price touched a 52-week low of Rs 2,409, falling 1.5 percent intraday on December 2, after the company posted weak sales numbers for November.
Hero MotoCorp sold 3,49,393 units in November 2021 as against 5,91,091 units a year ago, registering a de-growth of 40.89 percent.
The company has sold 3,29,185 units of motorcycles in November 2021 against 5,41,437 units and sold 20,208 units of scooters in November 2021 as against 49,654 units YoY.
In the domestic market, the company sold 3,28,862 vehicles – down from 5,75,957 units – during the period.
However, exports increased to 20,531 units versus 15,134 units in the last one year.
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Delay in harvesting due to the late withdrawal of monsoon in many parts of the country impacted the demand after the festive season. With the economy gradually opening up and with positive indicators such as encouraging farm activity, confident consumer index, and marriage season, a swift revival in sales is expected in the fourth quarter, Hero MotoCorp said in its release.
Additionally, commodity prices showing some signs of softening aided with the reduction in excise duty on fuel and increased spending on capex programmes by the government is likely to bring back the momentum in the two-wheeler industry, the company said.
The company’s electric vehicles (EV) project is progressing as per plans, and the Chittoor manufacturing facility in Andhra Pradesh is geared up to produce the green products, it said.
“Auto sales in November 2021 were impacted by chip shortage in passenger vehicles, light commercial vehicles, and the domestic premium motorcycle segment,” said Arun Agarwal, Deputy Vice-President, Fundamental Research, Kotak Securities.
“The passenger vehicle segment saw healthy inquiries and booking in the festive season and thereby volumes in this segment are expected to improve once the chip shortage situation gets resolved.”
In the commercial vehicle space, the medium and heavy commercial vehicle segments continued their gradual recovery supported by improved fleet utilisation levels. The tractor industry and domestic two-wheeler industry sales volumes declined in November 2021 on account of delays in kharif crop harvesting and channel destocking.
At 11:50am, Hero MotoCorp was quoting at Rs 2,449.40, up Rs 3.50, or 0.14 percent, on the BSE.