Friday, 22 July 2011

Hero Honda Motors India reports record sales of 1.52 million units for June quarter of 2011




Hero Honda Motors total income has increased 32% and stands at Rs 5,683 crore for the June quarter of 2011 as compared to Rs 4,296 crore for the corresponding period last year. Two wheeler sales recorded a 24% increase fuelled by the Splendor and Passion portfolio. The April-June quarter of 2011 saw Hero Honda Motors launch refurbished Glamour and Karizma variants which contributed to their record sales of 1.52 million units.
MD and CEO of Hero Honda Motors, Pawan Munjal said, “Our performance has set the outlook for coming quarters and we are confident of achieving initial guidance to sell over six million units this fiscal. On an immediate basis, the thrust is on to maintain operational excellence in light of volatile costs of commodities such as steel, aluminum and rubber.” “We are also aggressively expanding our distribution network, and we will soon be crossing 5,000 customer touch points by end of the year.”

Hero Honda Motors India raised two-wheeler prices by Rs 500 to Rs 700 on 24th June 2011 across all models to cover costs of key components and raw materials. Previosuly the company had increased prices by 1.5-2% in April 2011.
As per the new licensing agreement Honda Motor until 2014, Honda gives Hero Honda many licenses under the intellectual property rights and resultantly the company’s depreciation and amortization costs have increased significantly. Hero Honda Motors India will be spending Rs 100 crore on re-branding, and is awaiting approval from the BOD regarding a company change of name to Hero MotoCorp. The company looks at launching 7-8 models to its product portfolio in India, and export strategy for Africa, Latin America, and South East Asia will be divulged in the months to come.

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