Hero is offering exchange bonus, cash discount and low rate of interest to attract new customers during this festive season
The sales crisis continued last month as the two-wheeler industry saw another massive decline of 22.24 per cent in August 2019. The overall sales volumes stood at 15,14,196 units as against 19,47,304 units during the same month last year. As for the motorcycles, the sales dropped to 22.33 per cent with 9,37,486 units as compared to over 12 lakh units during the corresponding month in 2018.
The scooter sales, on the other hand, did not see any improvement either as 22.19 per cent volume drop was encountered. A total of 5.2 lakh units were retailed in August 2019 as against 6.69 lakh units twelve months ago. The largest two-wheeler manufacturer in the country, Hero MotoCorp, registered 20.97 per cent slump in August 2019 with 5,24,003 domestic two-wheeler sales.
Hero MotoCorp is aiming for a 10 per cent sales growth in this festive season. It comes on the back of reduced corporate tax rates to boost volumes across the industry enabling increased cashflow and incentives for companies to instigate more investments locally. Reports suggest that Hero is expecting the inventories to return to the normal state of one month following this festive season.
To capitalise on the positive purchasing sentiments that generally exist among customers, Hero is offering discounts and benefits across its range. The cash discount of Rs. 2,000, exchange bonus of Rs. 5,000 and an interest rate of 6.99 per cent are part of the offer package. Along with that, Paytm also offering benefits worth Rs. 10,000 this month making the total saving over Rs. 17,000. Hero has certainly been encouraged by the sales prospects of the recently launched products despite the sales slowdown.
Hero expanded its 200 cc range with the debut of the XPulse 200 and 200T alongside the Xtreme 200S. Moreover, the Maestro Edge 125 FI became the first fuel-injected scooter in India and it accompanied the updated Pleasure 110 Plus. Hero could further stretch its legs on the 200 cc segment in the near future but its plans beyond that remain unknown.
Back in June 2019, the homegrown manufacturer became the first in India to receive the BSVI certification from International Centre for Automotive Technology (ICAT). It will be interesting to see what Hero brings to the table at 2020 Auto Expo but as ever we hope the concepts won’t just end up being meagre design studies.