Glass half full: Hero MotoCorp shows strong recovery despite 27% year on year dip in June 2020 sales

Hero MotoCorp, India's largest two-wheeler maker, on Wednesday reported that the company sold 4,50,744 units in June 2020, four times the numbers it recorded in May this year. 

The figures, however, saw a 26.88% dip last month as compared to the same period of last year.

The company had sold 6,16,526 units in June 2019 while only 1,12,682 units were dispatched in May 2020.

In the first quarter of the current financial year ending June 30, the two-wheeler major reported total sales of 5,63,426 units of motorcycles and scooters.

While the company may have suffered in Aprile-May period because of COVID-19 pandemic and lockdown imposed to stop its spread, the numbers in June points towards a recovery. 

"We have demonstrated phenomenal leadership quality and tenacity to clock a sharp vertical growth in our sales at a time of massive disruption and uncertainty," Hero MotoCorp Chairman Pawan Munjal said in a statement.

Munjal said sales of over 4.5 lakh two-wheelers in a highly disrupted month is also a clear signal of the resilience of the Indian economy to be able to revive in the face of any adversity. 

This has vindicated our strong belief in the robust fundamentals of the Indian economy, Munjal further said.

He added that a major part of the market demand is emanating from the rural and semi-urban markets, which have been helped to a large extent by the various stimulus packages rolled out by the government.

"A combination of multiple factors, including the forecast of a normal monsoon, a bumper Rabi crop and the upcoming festive season are expected to keep the momentum going over the next few months," Munjal noted.

More than 95% of its customer touchpoints have become operational with strict safety measures and protocols in place, the company said.