The homegrown two-wheeler manufacturer sold more than 5.5 lakh motorcycles and 77,000 scooters in June 2017; wedding season sales attributed to the success
Hero MotoCorp has seen its sales increased by 14% to 624,185 in June 2017, while in the brand sold 549,533 units in the same month last year. The company says that last month it sold more than 5.5 units of motorcycles and 77,000 units of scooters. Despite the uncertainty over GST, the homegrown two-wheeler manufacturer managed to keep its sales figure increasing positively.
The company attributes this success to the strong demands for of two-wheelers during wedding season. Not only in June this year, during the April – June period also, Hero managed to sell the highest number of two-wheelers in any quarter as it retailed 18,49,375 units. Earlier, it best quarterly sales performance was between July-September in last financial year, when it retailed 18.23 lakh units of two-wheelers.
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Interestingly, scooter sales have been increased by a very impressive 22% in June this year compared to the corresponding month in 2016. The success has been attributed to the motorcycles like Glamour, Splendor, Passion, HF Deluxe and Achiever, while in the scooter segment the Maestro Edge, Duet and Pleasure also done pretty well.
Now with the GST kicked in from 1st July, Hero MotoCorp is expecting its sales to grow further as the company has already slashed pricing of its products to pass on the benefit of the new tax system to the customers. Hero has reduced pricing of its popular products by up to Rs. 1,800, while the premium models have become cheaper by up to Rs. 4,000.
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Under the GST, the two-wheelers with sub-350 cc engines draw a total tax amount of 28% compared to pre-GST 30% total tax incidence. On the other hand, the motorcycles with engine displacing more than 350 cc draws 3% cess over and above 28% GST leading the total tax incidence to 31% hiking the price of these products marginally.
Hero Splendor iSmart 110 Gallery