Hero Motocorp reported lackluster numbers for June, with sales remaining largely flat.
The company sold 5,42,362 motorcyles during the month, more or less unchanged from last year’s 5,41,594 units.
In contrast, rival Yamaha Motors and TVS Motors reported strong growth for June.
Yamaha Motor India Sales Pvt. Ltd. announced a growth of 26% in domestic sales, while TVS Motors’ two wheeler sales grew by 7% increasing to 211,002 units for the month.
The biggest rival for Hero, former partner Honda, is yet to report its numbers.
Hero Motocorp has been suffering from slow growth due its reliance on mass-market or commuter bikes. The company is not strong in the upper, or premium segment, which is ruled by Bajaj Auto. It recently launched the sports edition of its Xtreme series.
Hero blamed “sluggish market sentiment and the slowing rural economy” for the poor growth.
“As the industry had built up stocks due to the sluggish market, HMCL reduced inventories in Q1. The company’s retails are currently better than dispatches,” it said.
In the month of June, Hero MotoCorp introduced two new models in the market in quick succession – Passion Pro and Xtreme Sports. Going forward, the company has lined up a slew of launches across segments in scooters and motorcycles, leading up to the festive season.