India’s largest two wheeler manufacturing company Hero Motocorp, aims to sell 7 million units in the financial year 2012-13. In order to achieve the target the company has up its production capacity to 800 units an hour which is production capacity of the 7 million units a year. The company has also asked its dealer to up the capacity for the financial year 2012-13. The company has sold 6.2 million units worldwide in the last financial year.
Hero Motocorp. has registered 15% growth in the last financial year in the market of 13.43 million units. This year the market is expected to be about 15 million units with the growth of 11-13%. By targeting 7 million units sells, Hero Motocorp is targeting growth of 13% which is in line with the industry growth.
Hero Motocorp’s 7 million targets looks ambitious considering the way growth of industry is slowing down. It is also to be noted that HMSI is increasing production capacity very fast and it’s Dream Yuga will directly compete against Hero‘s bestseller Splendor. However, it is also fact that Hero Motocorp has never missed its sales guidance till the year. In fact it has over achieved its sales target.