Hero MotoCorp sales dropped by 4.8 per cent in February 2017 as compared to the corresponding month in the last year. Neverthless, the company has managed to hold on to the first spot in the Indian two wheeler market.
Hero sold 5.24 lakh two wheelers in the last month as opposed to the 5.50 lakh units it had managed in February 2016. Given that the rural markets contribute largely to Hero's sales, demonetisation has made a big dent in the company's sales. Nevertheless, the percentage of drop in sales in the last month is lower than what the company has experienced in the last few months.
The company has rolled out finance schemes and installed POS machines at its dealerships to simplify cashless transactions to counter the cash crunch. Sales are expected to regain momentum over the next few months.