No excessive discounts on Hero motorcycles and scooters. Company expects festive demand to take care of its (currently) swollen inventory…
Hero is facing a big backlog of its scooters and motorcycles inventory at its dealerships. According to unconfirmed reports, the stock could be as big as 60+ days. Add to this Hero’s dilemma with its 97cc engine which could be its biggest Achilles heel during this transition to Bharat Stage VI regime.
To pump up its dealers during this downturn, Hero organised an event for them which had ‘Brave the Wave‘ as predominant theme according to a report at Economic Times. Indian Cricket Team captain Virat Kohli was the star attraction at the show.
The report adds that Hero will not dole out excessive discounts and expects the demand to pick up during this festive season due to the recent measures taken by the government. This was revealed by a dealer attending the event. It must be noted that Rajiv Bajaj had said that Hero will have to announce a ‘mother of all discounts‘ to clear its inventory before April 2020 (more details).
Pawan Munjal, chairman of Hero MotoCorp, who presided over the function said that when other makers are holding back their investments, Hero went ahead and launched as many as five new products within the first part of this financial year which include three new motorcycles (Xpulse 200, Xpulse 200T and Xtreme 200S) and two scooters (Maestro Edge 125 and Pleasure 110). He also said that the response to these new products has been ‘encouraging’.
Hero has streamlined dispatches to its dealerships and is expecting to bring the inventory levels to about 30 days which is considered as the safe zone, after this festive season.
Source – Economic Times