Hero MotoCorp registers best ever dispatch sales in May 2013

It would be an understatement to say that Hero MotoCorp, the world's largest two wheeler maker by volumes is finding the going tough. Honda is targeting Hero MotoCorp's bread and butter entry level motorcycle range with the Dream series of 110cc commuters while Bajaj Auto is playing both ends of the market with a slew of new launches that include Discover commuter motorcycles and new motorcycles in the Pulsar series. Amid all this, Hero MotoCorp has seen its market share being chipped away. Even as it looks to export markets to hold on to its volumes, Hero MotoCorp has registered a big month in May 2013. 

The Indian two wheeler major has embarked upon a fightback and the initial results seem encouraging. In a gloomy market, Hero MotoCorp seems to be getting the equation right as it has managed to dispatch 557,890 units of two wheelers to dealerships across the country, the brand's highest ever dispatch for any month ever. Retail sales too are strong at 1.1 million units for April and May taken together, the highest ever two month sales for the company, excluding the figures clocked during the festive seasons. Hero MotoCorp attributes this success to the recently rolled out 5 year warranty scheme on all its two wheelers. 

The 5 year warranty scheme by Hero MotoCorp is an industry leading measure, and the brand has been carrying out a widely advertised campaign across media outlets to drive home the point. The coming months could prove to be happy tidings for Hero MotoCorp as the weatherman reports a good monsoon. A big chunk of two wheeler sales, especially those of commuter motorcycles, comes from the Indian hinterland, a part of the country which is highly dependent on agriculture and allied activities. With most of India being rain fed, a good monsoon is closely aligned with the fortunes of the Indian hinterland.

Good monsoons usually see higher off take of consumer durables such as motorcycles and Hero MotoCorp, being the largest player in the country with an unparalleled reach in rural India stands to gain the most. The competition though, is intensifying as Honda is establishing more dealerships in semi-urban and rural parts of India. In a country where the Honda brand name is synonymous with quality and durability, Hero MotoCorp does have its task cut out. Hero MotoCorp has tied up with Erik Buell Racing, AVL Austria and Riccardo for developing new motorcycles while it has pushed into Central America by launching motorcycles in Guatemala, El Salvado and the Honduras.