Hero MotoCorp plant to remain closed for four days due to lower demand
In another alarming sign for Indian automobile sector, Hero MotoCorp has announced that the company will keep its plant shut for four days on account of holidays and lower demand for its two-wheelers. Hero MotoCorp has been market leader in many two-wheeler segments and the company has witnessed strong growth in profit and sales over years.
However, in the current downturn cycle for Indian automobile sector, Hero MotoCorp hasn’t been left untouched. Market leaders like Maruti, Hyundai, Tata Motors have reported decline in sales. And, a decline in automobile sales would turn into trouble for many other sectors. Four-wheeler manufacturers will face troubles as the market transitions to electric vehicles. Indian government should consider the slowdown in automobile sector seriously and announce more steps to help automobile sector.
Hero MotoCorp production was at 24,66,802 units, down 12.03 per cent from the year-ago period (April to July).
Announcing the plant shutdown, Hero MotoCorp management said, “While this has been part of the annual holiday calendar on account of Independence Day, Raksha Bandhan and the weekend, it also partly reflects the prevailing market demand scenario.”