streak
12-23-2008, 05:57 AM
The country's largest bike maker bucks the trend of market slowdown
otorcycle major arc! market leader, Hero Honda has posted the highest sales'growth for the quarter ended mendable 50 percent increase in profit after tax. During the festival month alone, the company posted retail sales growth of 12 percent to over 6 lakh units as compared to 5.37 lakh vehicles sold in the same month. This performance is even more significant if we consider that both, Bajaj Auto and TVS Motor Company; reported a heavy slump in sales month.
Elaborating on the reasons of this strong show, Hero Honda Managing Director, said, "Our margins grew as a result of good sales volume and a strong fiscal discipline. Cost control and greater penetration in the market also helped bring in better profits. We built a huge stock to attain the highest volume growth in the festive season. To meet the liquidity crunch in the market, we have entered into tie-ups with regional, rural and co-operative banks to meet customers' credit needs."
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The firm, which currently has a market share of over 55 percent, unveiled four new variants of its existing models - self start versions of its 100CC bikes, Passion (Passion Pro Power Start) and Splendor NXG; a new CBZ Xtreme (150 cc bike) as well as a refreshed Pleasure (100CC gearless scooter) - to cash in on the demand. A total of seven new models will be introduced in the coming months.
The softening in prices of commodities such as steel, aluminium and rubber has also helped improve Hero Honda's bottom line. There is tremendous potential to sustain this volume growth over the next few quarters with the commencement of operations at the company's.
otorcycle major arc! market leader, Hero Honda has posted the highest sales'growth for the quarter ended mendable 50 percent increase in profit after tax. During the festival month alone, the company posted retail sales growth of 12 percent to over 6 lakh units as compared to 5.37 lakh vehicles sold in the same month. This performance is even more significant if we consider that both, Bajaj Auto and TVS Motor Company; reported a heavy slump in sales month.
Elaborating on the reasons of this strong show, Hero Honda Managing Director, said, "Our margins grew as a result of good sales volume and a strong fiscal discipline. Cost control and greater penetration in the market also helped bring in better profits. We built a huge stock to attain the highest volume growth in the festive season. To meet the liquidity crunch in the market, we have entered into tie-ups with regional, rural and co-operative banks to meet customers' credit needs."
119
The firm, which currently has a market share of over 55 percent, unveiled four new variants of its existing models - self start versions of its 100CC bikes, Passion (Passion Pro Power Start) and Splendor NXG; a new CBZ Xtreme (150 cc bike) as well as a refreshed Pleasure (100CC gearless scooter) - to cash in on the demand. A total of seven new models will be introduced in the coming months.
The softening in prices of commodities such as steel, aluminium and rubber has also helped improve Hero Honda's bottom line. There is tremendous potential to sustain this volume growth over the next few quarters with the commencement of operations at the company's.