Hero Honda posts highest-ever May sales of 22.5%
Hero Honda Motors Ltd (HHML), the world's largest two-wheeler manufacturer, keeps consolidating its market leadership. The company today reported sales of 3,82,678 units in May 2009 - its highest-ever sales for the month of May. This is a 22.5 per cent growth over the corresponding month in 2008, when it had sold 3,12,317 units.
This comes close on the heels of a 30 per cent growth in Hero Honda's April sales, when the company sold 3,70,575 units of two-wheelers. With this, Hero Honda's cumulative sales in the new financial year (April-May, 2009-10) goes up to 7,53,253, a growth of 25.8 per cent over the corresponding period last year when the company sold 5,98,569 units.
Hero Honda has been consistently building on its strong 58 per cent share in the domestic motorcycle market in the country, even as the uncertainty over interest rates and an overall credit squeeze continues to impact the industry adversely.
Mr. Anil Dua, Sr. Vice-President (Marketing, Sales & Customer Care), Hero Honda Motors Ltd said, "The strategic building-blocks that we put in place in the past couple of years have been key to our consistent growth month after month. Consistent product refreshes, aggressive network expansion, exploring new markets, clutter-breaking communication and ground activation have been the hallmark of this strategy. We have also built an extensive network of over 3500 touch-points across the country, which will be taken up to 4000 by the end of this year.
"Going forward, we will therefore also keep up our relentless effort to reach out to customers spread across the semi-urban and upcountry markets," he added.
Most of the new launches such as the Passion Pro, Splendor NXG self-start, the special edition Hunk, the new Pleasure, in addition to the trusted Splendor + and Passion Plus, have been share-and-volume drivers for the company.
Hunk and CBZ X-treme continue to help build on Hero Honda's steadily growing share in the premium segment. Hero Honda was given the "Trusted Brand" (Motorcycles) Award 2009 by Reader's Digest magazine in the month of May.
[Via: infibeam]
Hero Honda posted its highest net profit in five quarters
Racing ahead of main rival Bajaj Auto, Hero Honda continues to record an amazing performance this year, despite the overall recession in the Indian automotive market.
In fact, Hero Honda posted its highest net profit in five quarters, with a 50% increase in profit after tax (PAT) at Rs 306.3 crore for the quarter ended September 30, 2008. The company clocked Rs 204.3 crore in the same period last year, and Rs 298.7 crore in the fourth quarter of FY 2007.
Due to better cost control, more efficient work practices and higher sales, Hero Honda's operating profit margins also improved to 15.26% during the quarter, against 14.06% in the same period last year, and 12% in the first quarter.
Hero Honda's motorcycle and scooter sales went up by 29% during the quarter to 972,000 units, against last year's 756,000 units. The company sold 537,000 vehicles during the Diwali month in 2007, and aims to cross that mark this year with 600,000 units.
'We have posted the best-ever sales in the fiscal and are aiming to net the highest-ever sales in October. Our margins grew as a result of good sales volume and strong fiscal discipline. Cost-control and greater penetration in the market also helped bring in better profits. We have built a huge stock to attain the highest volume growth in the festive season. To meet the liquidity crunch in the market, we have entered into tie-ups with regional, rural and co-operative banks to meet customers' credit needs,' said Pawan Munjal, MD, Hero Honda.
Hero Honda, which currently has a 55% market share in the two-wheeler segment in India, recently launched four new variants of its existing bikes, and is expected to launch more variants and perhaps two or three all-new bikes by end-2009.
According to analysts and industry experts, Hero Honda's fundamentals are strong and it has posted impressive volume growth, outperforming the entire two-wheeler industry. The company improved its realization on the back of shifting bulk production to the tax-free zone in Haridwar, and its bottom line has grown with effective cost control management.
[Via: indiaautomotive]
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