Hero MotoCorp Loses Ground in June 2023, Exports and Motorcycles Take a Hit

Hero MotoCorp, the two-wheeler market leader, ended June 2023 with negative performance. Their sales have plummeted both on a yearly and monthly basis, with YTD sales also declining. The company sold 4,36,993 units (domestic + exports) in June 2023, which was 9.87% lower than the 4,84,867 units sold in June 2022. This meant a loss of 47,874 units in volume. Compared to May 2023, when the company sold 5,19,474 units, sales dropped by 15.88% in June 2023.

| Sales (in units) | June 2023 | June 2022 | % Change ||----------------------------|-----------|-----------|----------|| Total (domestic + exports) | 4,36,993 | 4,84,867 | -9.87 || Domestic | 4,24,310 | 4,69,160 | -9.56 || Exports | 12,683 | 15,707 | -19.25 |

Motorcycle Sales:

The company reported strong growth in scooter sales, but motorcycle sales suffered a 12.34% fall to 4,04,474 units in June 2023. This was down from the 4,61,421 units sold in June 2022. On a monthly basis, motorcycle sales decreased by 17.34% from the 4,89,336 units sold in May 2023. The share of motorcycles in total sales reduced to 92.56% in June 2023, from 94.20% in May 2023. In terms of motorcycle YTD sales in FY 2024, the company registered a 3.34% decline to 12,62,640 units, compared to the 13,06,294 units sold in FY 2023.

| Motorcycle Sales (in units) | June 2023 | June 2022 | % Change ||-----------------------------|-----------|-----------|----------|| Domestic + Exports | 4,04,474 | 4,61,421 | -12.34 || Domestic | 3,91,791 | 4,45,714 | -12.10 || Exports | 12,683 | 15,707 | -19.25 |

Scooter Sales

Scooters are in high demand- Indian customers have shown a strong preference for scooters. The company sold 32,519 units of scooters in the last month, which was 38.70% higher than the 23,446 units sold in June 2022. Compared to May 2023, when the company sold 30,138 units of scooters, sales grew by 7.90% in June 2023. The company captured a 7.44% market share in scooters. In FY24, scooter sales rose by 7.19% to 89,934 units, from 83,899 units sold in the same period of FY23.

| Scooter Sales (in units) | June 2023 | June 2022 | % Change ||--------------------------|-----------|-----------|----------|| Domestic + Exports | 32,519 | 23,446 | 38.70 || Domestic | 31,836 | 22,739 | 39.98 || Exports | 683 | 707 | -3.39 |

Exports

Exports saw a sharp decline- The company faced a setback in its exports, which fell by 34.27% to 14,236 units in June 2023, from 21,657 units shipped in June 2022. However, on a monthly basis, exports increased by 27.51% from the 11,165 units shipped in May 2023. In FY24, exports dropped by 43.05% to 35,326 units, from 62,027 units in FY23.

| Exports (in units) | June 2023 | June 2022 | % Change ||----------------------------|-----------|-----------|----------|| Total (domestic + exports) | 14,236 | 21,657 | -34.27 || Motorcycle | 12,683 | 15,707 | -19.25 || Scooter | 683 | 707 | -3.39 |

New Products

The company is launching new products- The company is optimistic about the new premium motorcycle that it has developed with Harley Davidson. The new Harley-Davidson X440 neo-retro roadster will be launched in India on July 3rd, 2023. The company also introduced the new Xtreme 160R 4V in June, which comes in three variants: Standard, Connected 2.0, and Pro with Upside Down forks