Hero MotoCorp expects double-digit growth in the two-wheeler industry FY2023

Hero MotoCorp, the country’s largest two-wheeler maker, expects the two-wheeler industry to return in the current financial year as economic activity picks up and high grain prices boost rural incomes, according to a PTI report.

With good macroeconomic indications, the company expects double-digit growth in the current financial year.

“The macro indicators are looking really good. The GST collection we’ve all seen is the highest ever in April, with e-way bills rising. I would say all sectors of the economy are open,” said Niranjan Gupta, CFO of Hero MotoCorp.

According to PTI, grain prices are high, they are boosting rural incomes, monsoon forecasts are modest, and much more, and it is clear that even if Kovid is not gone, everyone is now learning to move forward with their livelihoods and therefore consumer confidence and cost easily and realistically. Coming back strongly, he added.

“Already, we are seeing signs in April and we have no reason to believe why the two-wheeler industry will not double-digit in FY2023,” Gupta said.
Commenting specifically on the company’s growth prospects, he noted: “We will have multiple product and variant launches in our fiscal year and added to all the steps already taken, we are confident in gaining market share and therefore move ahead of the industry.”

Hero MotoCorp recorded a consolidated profit of Rs 2,329 crore in FY 2021-22, down 21% from Rs 2,936 crore in FY 2020-21. According to PTI, the revenue from the activity fell to Rs 29,551 crore in FY21 from Rs 30,959 crore in the previous year.

According to Gupta, the entire two-wheeler industry would like to return to the top of FY2019 as soon as possible.

“We need to look at the underlying factors that contribute to the long-term growth of the two-wheeler industry. Those factors are intact and I will repeat them. Happened, the big pool that is developing, which in fact should now drive the demands for replacement to be even bigger, “he said.

He added that the choice of better financing could also help increase sales in the future, PTI said.

“So I think the basic growth levers are intact. We have to see how fast this happens,” Gupta said.

Listing the challenges, he noted: “One of the concerns for industries across the board is cost inflation, which is now due to the geopolitical situation as we all know. Of course, this will be a precaution. But we are not unfamiliar with commodity inflation. , We’ve seen cycles in the past as well as recently. “

He said the company will continue to navigate this space by combining cost-saving and, of course, premiumization of some models with broad-based portfolio development, with smart price increases, PTI reported.

In the wake of the company’s electrical product rollout, Gupta said the first model would be unveiled on July 1, 2022, PTI reported.

“We want to make sure that the product we put on the market through rigorous testing is of the right quality and safety standards that we have done before. For us, the customer comes first and the business will follow,” he added.