Hero MotoCorp Ltd. reported 14 percent growth in sales in the month of June, driven by the strong pickup in demand for its scooters.
The two-wheeler maker sold 6,24,185 vehicles in June compared to 5,49,533 units in June 2016, according to its exchange filing. Motorcycle sales rose 13 percent to 5,47,185 units, while scooter sales growth outperformed, rising 22 percent to 77,000 units.
The company's marketing push, along with the introduction of new upgrades and refreshes earlier in the quarter, pushed up scooter volumes, said Hero MotoCorp. The wedding season demand supported the motorcycle segment volume growth, the company added.
The Pawan Munjal-led firm sold 18,49,375 two-wheelers in the April to June quarter, its best quarterly sales performance.
Shares of Hero MotoCorp rose as much as 1.8 percent to Rs 3,767 apiece after the announcement of the sales figures.
Racing Ahead
Rival Bajaj Auto Ltd.'s sales fell for the fourth straight month in June, dragged down by a decline in demand for its motorcycles. The Pune-based company sold 2,44,878 units in June, down 23 percent over the same month last year.
Meanwhile TVS Motor Company Ltd. saw its monthly sales rise 12 percent in June, largely led by higher scooters sales last month. The Chennai-based automaker sold more than 90,000 scooters, a jump of 34 percent, versus the same period last year.
GST Cheer For Consumers
Hero MotoCorp also announced price cuts to pass on the benefits from the Goods and Services Tax regime to its customers.
The company will cut prices on mass-selling models between Rs 400-1,800 with effect from July 1, while prices of premium models will be cut by up to Rs 4,000 in certain markets.
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