Hero MotoCorp Sales Drop in November 2024: What’s Next for the Giant?

Hero MotoCorp, India’s largest motorcycle manufacturer with a 31% market share, faced a significant sales decrease in November 2024. The company’s total sales dropped by 6.36% year-over-year (YoY), selling 459,805 units compared to 491,050 units in November 2023. The month also saw a 32.29% drop in sales compared to October 2024, where 679,091 units were sold. This represents a reduction of 219,286 units.

Sales Breakdown (November 2024):

What are the Key Factors Behind the Decline?

• Market Saturation: India's two-wheeler market is increasingly competitive, with a growing number of players competing for market share. As of January 2024, the number of electric two-wheeler companies in the country has increased to 152, up from 124 in June 2023.

• Economic Slowdown: Economic challenges due to geo-political issues and reduced consumer spending have negatively impacted sales.

• Product Mix: A major decline in scooter sales, which dropped by 31.79% YoY, heavily affected overall sales.

• Seasonal Factors: November typically sees slower sales due to the festive season and year-end financial planning.

What is the Impact on Different Segments?

Motorcycle sales declined by 3.49% YoY to 425,856 units, while scooter sales faced a more severe drop of 31.79% YoY, with only 33,949 units sold in November 2024. Despite the introduction of new models like the Hero Destini 125, delays in the Hero Xoom 125R and Xoom 160 have disturbed growth in the scooter segment.

Year-to-Date (YTD) Performance (April-November 2024)

​Despite the setback in November, Hero MotoCorp has shown strong growth over the first eight months of FY2025. From April to November, the company sold a total of 4,193,736 units, marking a 9.35% increase from 3,835,080 units in the same period last year. This growth was mainly driven by motorcycles, which saw a 10.69% increase, while scooter sales declined by 6.71%.

Here is a breakdown:

What can be the reasons for Ups and Downs?

​Hero MotoCorp's sales performance has been influenced by various factors:

1. New Model Launches: The launch of new models like Hero Xpulse 210, Karizma 250, Xtreme 250, and Vida Z at the 2024 EICMA Show in Milan is expected to boost sales in the coming months.

2. Product Portfolio Expansion: The company plans to strengthen its premium and scooter portfolio with new models in both ICE and EV segments.

3. Export Market: While domestic sales have declined, exports have shown a 35.65% improvement YoY, indicating strong international demand.

4. Economic Recovery: As the economy recovers, consumer spending is expected to increase which ultimately impacts sales positively.

What is the Strategy of Hero MotoCorp’s Recovery?

​The company remains optimistic about its future performance, thanks to new model launches such as the Hero Xpulse 210, Karizma XMR 250, Xtreme 250, and Vida Z, all showcased at the 2024 EICMA show. These new launches, along with a planned expansion of their premium and scooter portfolios, are expected to drive sales in the coming months. 

Hero MotoCorp is also diversifying into electric vehicles (EVs), with plans to strengthen its presence in the electric scooter segment. Additionally, the company showcased sketches of the Hero Surge S32 Convertible Electric Scooter/Rickshaw, slated for launch in 2025.

Exports Showing Positive Growth

While domestic sales have faced challenges, Hero MotoCorp has seen a strong 35.65% growth in exports YoY, reaching 20,028 units in November 2024. This reflects solid international demand, particularly as the company continues to expand its global footprint.

Conclusion

Hero MotoCorp’s sales decline in November 2024 is largely attributed to market challenges, economic factors, and weaker scooter sales. However, the company is set for recovery with its upcoming product launches and plans to diversify further into the electric vehicle market. Strong export growth and a solid performance in the first eight months of FY2025 offer hope for better sales outcomes in the coming months.

Also, have a look: Sales Report of India's Electric Two-Weeler Industry