India’s two-wheeler major Hero MoroCorp sold more than 1.4mn units of two-wheelers in the 32-days festive period that ended this week. Inventories at dealerships recorded an all-time-low post the four-weeks Diwali festival season, said the company. The company on an average sold approximately 43,000 units per day during the 32-day season.
A projection of robust consumer demand in the festive season did turn true for the two-wheeler manufacturing company. The company stated that it secured 98pc of the volumes sold compared to previous year and 103pc of 2018 levels. Despite COVID-19-related disruptions faced on the supply side, especially for components since March, consumer demand was successfully met in the festive season due to planning and preparations.
The possibility of a COVID vaccine could boost global economic rebound and be advantageous for the company. Positive forecast by International Monetary Fund which forecasts a double-digit growth in FY22 for the India economy could boost consumer sentiments and aid the two-wheeler sector growth, says Hero MotoCorp. Several government measures are also likely to help in the faster recovery of the auto sector, says the company.
Low inventory levels are a good sign indicating the need for ramping production capacities which bodes well for the raw materials markets including metals, however, projection of auto demand post festive season is unspecified.