Indian automotive major, Hero MotoCorp has posted a disappointing, lower than expected fourth quarter results causing its shares to fall in the domestic stock exchange.

The company recorded a 14 per cent increase in two-wheeler sales in the fiscal year 2012, to over 13 million units. The two-wheeler sales are expected to grow to grow 11-13 per cent in fiscal 2013, according to Society of Indian Automobile Manufacturers (SIAM).

Hero MotoCorp has sold 6.24 million two-wheelers last fiscal, recording a growth of 15.4 compared to the previous year. The company has guided for 6.8 million unit sales in the current fiscal and expects 9-10% industry growth. During the month of April, the company sold 5,51,557 units, which is the highest for any month.

The largest two-wheeler company in India recently introduced a 125 cc Ignitor and a refreshed version of Passion motorcycle, the Passion X Pro in the 110 cc segment. The scooter named, Maestro with 110cc is Hero’s second offering in the segment.

The company is facing increasing competition from its former joint venture partner Honda as well as other manufacturers in the country. Experts have also expressed concerns over the increasing level of spending on R&D by the company, which has now reached 0.3% in FY2012.