Hero MotoCorp Sales Contracts At 12.9%, Lowest Sales In 20 Months

Hero MotoCorp reported sales of **479,856 units in November, 2016 against 55,0731 units **during the same time last year resulting in a contraction of 12.9%.

The company said in its press release:

Hero MotoCorp, which posted record festive sales this year, saw a drop in retail sales after the demonetisation initiative when the entire industry also witnessed decline in sales. With the slew of measures being implemented by the government, and several initiatives immediately undertaken by Hero MotoCorp to support its dealers and consumers, the Company expects the situation to steadily improve.

Continuing to target the African market, Hero MotoCorp unveiled the new Dawn 125 that has been developed specifically for the Africa region. The motorcycle will be made available across major African markets including Kenya, Uganda, Ethiopia, Tanzania and Mozambique.

Hero felt the demonetization pinch as its dealership witnessed footfall of just 15% in the first two days reaching close to 50% over the next few days. Pawan Munjal hopes to that the levels will be back to 100% over the next few days.

Rohit Gaur, General Manager, Jasodha Auto (an authorised dealership of Hero MotoCorp) said,

We used to sell 20 vehicles per day earlier, and since the demonetisation move, sales have fallen to 2-3 units per day. The footfalls for enquiry have also drastically dropped.

Mr. Pawan Munjal, Chariman said,

While there was a steep drop in foot falls at our dealerships in the first two days of currency ban, we are already seeing steady improvement in the situation with footfalls having gone up to almost 85% of the normal level. With the slew of measures being implemented by the government, we expect the situation to return to normalcy sooner than later

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