Hero Motocorp, India’s largest motorcycle manufacturer, has doubled the commission of all its dealers, in an effort to boost sales volumes for the month of December.
This is also an attempt by the company keep the sales momentum that it has generated in October and November constant. The Gurgaon based manufacturer sold 1.1 million units during that period. December is usually a slow month for manufacturers as consumers mostly prefer to wait for next year’s model or have already spent heavily in the previous months.
For quite a while now, Hero dealers have been demanding an increase in their margins. However, even when Hero has finally taken the step, the dealers are still not happy as feel that the raise has arrived too late and are skeptical of higher sales because of the current market conditions.
In the month of December if the dealers are able to sell more than what they sold in December 2011, on every incremental volume, the margin will go up by over 50 per cent and this works out to about Rs 750. Usually on most models it is in the range of Rs 1200-1300.