Shares of Hero MotoCorp fell more than 3% as December sales fell sharply
Shares of Hero MotoCorp fell more than 3 percent in today’s trading session after the company reported disappointing sales figures for December. The stock fell as low as Rs 4,159.90 on the BSE, reflecting investors’ concerns over declining sales of motorbikes and motorcycles.
December sales performance
Hero MotoCorp’s December sales fell 17.5% year-on-year, with total volumes falling to 3.24 lakh units from 3.93 lakh units in the same period last year. Domestic sales, in particular, were hit hard, down 22% to 2.94 lakh units. However, the company experienced a significant increase in exports, which increased by 91 percent, to 30,754 units. Despite this good export performance, the decline in domestic sales weighed heavily on the stock’s performance.
Motorcycle sales fell by 15.8%, while motorcycle sales fell by 32.8%. These reductions in key parts of the company contributed to a decline in overall sales.
Focus on the growth of the electric vehicle
In an attempt to balance the decline in conventional car sales, Hero MotoCorp has stepped up its electric vehicle (EV) efforts. The company reported that it sold more than 46,662 units of its VIDA V1 scooter in 2024. As part of its 2025 growth strategy, Hero MotoCorp plans to expand its EV portfolio, along with launching new models in the internal combustion engine (ICE) scooter. segment and develop its premium portfolio.
Analyst opinion and stock performance
Despite the recent sales dip, analysts remain optimistic about Hero MotoCorp’s future prospects. Trendlyne data shows that 23 out of 37 analysts recommend “buy” or “strong buy” on the stock, with a 12-month price target of Rs 5,307—representing an upside of around 23% from current levels.
The stock is down 25% in the last three months but has seen a 58% surge in the last three years. Investors are looking for a recovery as Hero MotoCorp continues to strengthen its export market and EV plans.
Important takeaways
Although Hero MotoCorp’s recent sales numbers were disappointing, the company’s efforts to expand its EV portfolio and focus on premium models are expected to support growth in 2025. As such, the current price decline may present a buying opportunity for long-term investors.
