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No let up on launches, ad spend despite slump: Hero Honda

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Press Trust of India New Delhi
Last Updated : Jan 20 2013 | 10:38 PM IST

India's largest two-wheeler maker Hero Honda today said it will go ahead with new launches and continuous spending on brand building and advertisements despite an overall slump in the market.

"We have had a growth in our sales as compared to the industry. We will keep on spending in brand building and advertisements to carry forward this momentum," Hero Honda Motors MD & CEO Pawan Munjal told reporters here on the sidelines of Indian School of Business function here.

There will be some more launches by the year-end, he added.

Bike sales in the country fell by 18.17 per cent in October at 5,38,353 units as against 6,57,874 units in the same month last year.

However, the company had registered a decline of 5.31 per cent in bike sales at 3,28,788 units in October compared with 3,47,216 units in the year-ago period.

Munjal said the market usually slows down after Diwali and "in the current environment the slowdown maybe a little more".

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He said the company has been putting up strong performance despite the overall slowdown in the industry.

In the second quarter ended September, the company had reported a 50 per cent jump in net profit at Rs 306.30 crore, while turnover also registered a growth of 35.6 per cent at Rs 3,202 crore. During the quarter, it had reported a total sales of 9,72,095 units, up 28.5 per cent over the same period last fiscal.

Its sales for the first half stood at 18,66,349, up 19.7 per cent from the corresponding period last fiscal, garnering over 55 per cent share in domestic motorcycle market.

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First Published: Nov 12 2008 | 5:36 PM IST

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