Hero Motors in the 2020 is penalized by the slow development of international activities. While the recent year success was based on the leading position in India, the huge difficulties imposed to the domestic market by Covid19 are now penalizing the manufacturer which lost 42% in the first four months and projects sales down 1.9 million from 2019.
Global sales are sharply declining in the 2020
Global Sales declined 42.7% in the first four months of the 2020 and the trend destiny is to be worse at the end of the second quarter.
The manufacturer is the best seller in India with near 7 million units sold last year and suffers for the prolonged shutdown imposed to the country by the covid19 spread.
In India, Hero reported no sales in April and few units in May.
Outside of the domestic market, Hero is still weak, despite having started an international project few years ago. A part the other countries within the Indian sub-continent, like Sri Lanka and Bangladesh, Hero is marginal in the rest of the World.
Actually full year 2020 sales are projected below the 5 million units, with a lost of 1.9 million units from the 2019 and 3 million down from the 2018 record.
Global sales declined in double-digit in the 2019
Hero Motor is the second largest motorcycles company in the World with a record of 8 million vehicles sold in the 2018.
Hero Motor global sales trend in the 2019 was almost negative, reporting the first drop since the 2011 divorce with Honda. Sales have been 6.9 million units, down a robust 14% from the previous year.
This negative score was heavily correlated with the lost in India. where Hero struggles with sales declined 15% and was not offset by other countries where the performance was positive, like Colombia (+15.8%) and Bangladesh (+10%).
Indeed and differently from the rival Bajaj Auto, the development of international operations is still marginal and the company destiny is still fully related to the Indian market.
Hero is the World’s second largest motorcycles and scooter company. Headquartered in New Delhi, India.
The company was established as a joint venture company between Honda Motor Company of Japan and Hero Group. In the year 1983 they signed a joint collaboration agreement and formed the company. The joint venture between India’s Hero Group and Honda Motor Company Japan has not only created the world’s single largest two-wheeler company but also one of the most successful joint ventures worldwide
In the 2011, the Munjal family holding, Indian Promoter Group, and Honda Motor Co Ltd Japan (Honda) entered into a Share Transfer Agreement to transfer the entire Honda’ shareholdings of 26% in the Company to the Indian Promoter Group bringing an end to the joint venture between the two promoter groups of the company.
The acquisition was completed on March 22 2011 and the shares held by Honda were transferred to the Indian joint venture partner. In addition to the Agreement the Indian Promoter Group and Honda also entered into a License Agreement which has given to the company the right and license to manufacture assemble sell and distribute certain products and their service parts under their Intellectual Property Rights.
In July 2011 the company changed their name from Hero Honda Motors Ltd to Hero MotoCorp Ltd.
In 2015 the company commences operation in their first ever plant outside India established in Villa Rica Colombia.
On 10 March 2016 Hero formally inaugurated its world-class `Global Centre of Innovation and Technology’ (CIT) in Jaipur Rajasthan. Built with an investment of Rs 850 crore the CIT will design and develop world-class products for global markets
On 12 January 2017 Hero launched new Glamour motorcycle in Argentina its first-ever global launch of a new product outside India.
In May 2017 Hero commenced commercial production at the second global manufacturing facility in Bangladesh. On 7 November 2017 Hero unveiled the Xpulse Concept motorcycle as a world premier at the EICMA annual trade show in Milan Italy.
In the 2017 Hero hit the milestone of 75 million motor sold since the 1984.