Hero Motocorp wants government to take ‘urgent steps’ to help recover falling sales
Hero Motocorpannounced its Q1 FY20 earnings, where the company saw a net profit of ₹1257 crores, up by 38%.
- However, Hero has seen a decline in sales by 12.2% from the same quarter in FY19.
- The company’s CFO appealed to the government to reduce the GST on two-wheelers from the current 28% to 18%.
The slowing auto market has affected it sales too, which declined by 12.2% to 616,526, just for the month of June, as compared to the 704,562 units sold in the same month last year.
"The overall economic and customer sentiments continued to be soft during the first quarter of this fiscal and their impact is clearly visible in the performance of the Auto sector, The outlook for the rest of the year will be dependent on multiple factors, including the progress of monsoon and festive season offtake, as well as improvement in liquidity,” said Niranjan Gupta, Chief Financial Officer, Hero MotoCorp.
In the Q1, Hero has sold over 1.8 million motorcycles and scooters. In the same quarter of the previous year, Hero had announced its highest ever sales in a single quarter at – 2.1 million.
Hero Motocorp had recently announced its foray into the electric vehicle segment. However, according to reports, the Pawan Munjal-led company will not be able to use its legacy brand name of Hero for EVs as his brother Naveen Munjal has the rights for the brand name Hero for Hero Electric.
Gupta also said that it is important for the government to take urgent steps to boost consumption. “We would, therefore, reiterate our appeal to the government to bring down the GST on two-wheelers to 18% from the current level of 28%, in order to provide the much-needed relief to the sector. A reduction in GST will lower the cost of the two-wheeler and spur demand, with the consequent growth in volumes offsetting any impact on the government revenue,” said Gupta.
Popular on BI
- Elon Musk sparks another Shiba Inu rally ‘to the moon’ — other Shiba coins follow suit
- The best wildlife photos of the year show a curious grizzly, dueling reindeer, and fish swimming through a cloud of sperm
- Trading app Public lists shiba inu coin on its trading platform as the Robinhood rival broadens crypto offerings
- Best artificial flowers for living room decoration in India
- This Ethereum-based metaverse is letting crypto fans own land on the Red Planet, even though international space laws would disagree
- Unemployment rate in India sees a dip after a month
- L&T aims to become carbon neutral by 2040 and here's how
- Paytm may drop its pre-IPO sale as advisors recommend lower valuation