New Delhi, Sep 5 (IANS) Hero MotoCorp Wednesday said it expects motorcycles sales to grow during the festive season after two straight months of fall in demand in line with the economic slowdown.
"I am personally very hopeful that sales will turn positive in October after two slow months (July and August 2012)," Pawan Munjal, managing director and chief executive, said on the sidelines of annual convention of Automotive Component Manufacturers Association of India (ACMA).
Sales of the two-wheeler major fell for the first time in many years as demand at the entry-level, best selling for motorcycles such as Splendor and Passion went down.
Hero MotoCorp’s sales fell one percent in July and stood at 484,217 units from 491,036 units sold in the corresponding month of 2011. Last month, sales fell 12 percent and stood at 443,801 units from 503,654 units sold in August 2011.
The two-wheeler major is also looking to clear inventories of unsold two-wheelers during the festive period.
“We are also glad that we have managed to put out stocks that the market requires during the festive season,” Munjal said.
However, the company did not give sales forecast after the festive season.
“Thankfully, the fall in two-wheeler sales has happened much later than the rest of the economy. However, it is difficult to give a full year forecast as we have to wait and watch demand after festive season,” Munjal added.
Not just Hero MotoCorp, but other two-wheeler majors like Bajaj Auto and TVS Motor have also seen a fall in demand over the last two months.
During last month Bajaj Auto’s motorcycle sales plummeted 10 percent at 304,352 units from 338,054 units sold in the August 2011. Sales of TVS Motor have also fallen 21 percent at 154,647 units last month from 194,898 units sold in the corresponding month of 2011.
--Indo-Asian News Service