Sales for Hero MotoCorp Ltd., dropped 25 percent in the month of November as the Narendra Modi government’s demonetisation initiative kept consumers away. It was the first drop in sales reported by the company in 2016. The last instance of the company reporting a negative growth in sales was during August 2015, when sales dropped 14 percent.
The company sold 4,79,856 units in the month of November, as against 6,39,802 units in the corresponding month last year, it said in its filing to the exchanges.
The company attributed the drop in sales to the ban on currency notes of higher denomination but added that the situation would improve in the coming days.
With the slew of measures being implemented by the government, and several initiatives immediately undertaken by Hero MotoCorp to support its dealers and consumers, the Company expects the situation to steadily improve.Hero MotoCorp’s Filing To The Exchanges
The company, as part of its African initiative, has launched the ‘Dawn 125’ motorcycle, specifically designed for the African market.
Shares of Hero MotoCorp Ltd. fell as much as 1.26 percent to Rs 3,150.10 before recovering the losses to trade flat.