Is Hero Honda recession proof?
Hero Honda's strategy to maintain its position in the ongoing economic slowdown seems to be paying off. The world's largest two-wheeler manufacturer has registered an increase in sales by 12% or 33 lakh units in the first 11 months of this fiscal year. It is the company's best sales performance in its 25 years manufacturing history. Hero Honda's profit margins for the December 2008 quarter were the highest ever in the past three years with its net profit rising by 9.24% and total turnover increasing by 5%.
According to Pawan Munjal, MD, Hero Honda, the company always manufactures products that the customer wants and that are driving sales. He also commented that it's the manufacturer's single-minded focus to drive volumes which automatically leads to higher profits. Other two-wheeler manufacturers like Bajaj Auto and TVS Motor Co have not been fortunate enough and have registered negative growth.
Hero Honda has been the world's largest two-wheeler manufacturer for the past eight consecutive years. The company's focus on maintaining its market lead in the entry-level segment, which is the country's largest two-wheeler market segment, has ensured it remains unaffected in the ongoing economic slowdown.
[Via: BIKE]
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