GST Boost: Hero MotoCorp Anticipates Record Sales As Festive Season Begins| Profit Exclusive

Hero MotoCorp Ltd. expects the current festive season to be record-breaking. To be sure, in the festive season of 2024, the company's sales in the 32-day period rose by 13% to 15.98 lakh units.

The start to this year’s Navratri and festive season has been momentous for the entire auto industry, India's largest two-wheeler maker's Chief Business Officer of the India business unit Ashutosh Varma told NDTV Profit in an interaction.

We have witnessed a very strong start to the festive season with a significant uptick in activity across our dealerships – about double the showroom traffic of last year. There is a massive surge in consumer sentiment, enquiries and bookings," said Varma.

Hero Moto's outlook for Navratri and the rest of the festive season remains positive. Varma also told NDTV Profit that the strong traction began during Onam in Kerala and Ganesh Chaturthi in Maharashtra.

"Starting Navratri, footfalls and enquiries have seen a sharp surge, with day-on-day bookings higher compared to last year. The digital traction and enquiries too have been remarkable, surging to all-time high numbers, jumping up to times, and it gives us the confidence of a record festive season ahead," added Varma.

The GST Council earlier this month rejigged GST slabs for two-wheelers. Bikes under 350 cc engine will attract a GST of 18%, while bikes bigger than 350 cc will be charged with 40% GST. The GST cut, which coincides with the festive season, has had a major impact on the commuter segments, like 100cc and 125cc.While Hero is passing on 100% GST benefits, first-time buyers are also being given extra benefits up to Rs 15,000.

Hero Moto is seeing good demand for both entry-level and higher-segment bikes. Varma told NDTV Profit, "We have witnessed unprecedented interest and enquiries across our festive range, including the recent launch of the HF Deluxe Pro and other new launches such as the Destini 125, Xoom 125, Glamour X and Xpulse 210."

Varma also added that scooters are seeing a strong demand. "Commuter motorcycles in the 100cc and 125cc segments are showing very strong traction, thanks to the GST-led price benefits and the positive rural sentiment. At the same time, our premium range is also witnessing heightened interest, particularly in urban centres, supported by income tax benefits and lower interest rates," added Varma.

While the company is witnessing strong demand in both urban and rural markets, rural demand is expected to get even better as harvesting season concludes.