New Delhi, April 1 (IANS) Two-wheeler major Hero MotoCorp Monday reported a decline of 11.35 percent in its sales for March, which stood at 468,283 units from 528,290 units sold in the corresponding month of 2012.
According to the company, it sold a total of 6,075,583 units in 2012-13, from 6.2 million units off-take in 2011-12.
“Indian auto industry faced acute slowdown in FY-13. It continues to reel under the adversities of persistent inflation, firm interest rates, rising fuel prices and negative consumer sentiment,” Anil Dua, senior vice-president, marketing and sales, Hero MotoCorp, said in a statement.
“Going forward, we have planned new launches, new campaigns, capacity addition and network expansion to boost the sentiment of the domestic industry and accelerate growth.”
In another development the company commenced operations in Latin America and Africa, by shipping out its first consignments of two-wheelers Peru, El Salvador, Guatemala, Honduras, Burkina Faso and the Ivory Coast.
“We have started dispatches to our new international markets in Central and Latin America and Africa. We shall also be dispatching the first lot of our two-wheelers to Kenya later this month,” Pawan Munjal, managing director and chief executive, Hero MotoCorp, said in the statement.
The company further said that the motorcycles to be sold in these markets include a mix of 100 cc and 125 cc range. The company has also appointed new distributors and channel partners in all these markets, retail sales are likely to commence by the first quarter of 2013-14.
The company has already shortlisted as many as 30 countries across Latin America, Central America, Africa and South East Asia for sale of its products.
Currently, Colombia is the only country in Latin America where Hero MotoCorp two-wheelers are exported to. Other international markets include Sri Lanka, Bangladesh and Nepal.
The company added that it has earmarked capital expenditure worth Rs.1,100 crore, including an investment of about Rs.600 crore for the upcoming fourth plant and global parts centre at Neemrana, Rajasthan.
Another Rs.100-150 crore are slated for a state-of-the-art integrated research and development (R&D) centre at Kukas, Rajasthan.
“These initiatives are in keeping with Hero MotoCorp’s vision of reaching a total of 10 million unit volumes in a few years’ time, and garnering a million units – 10 per cent of that – from international business,” the statement added.
