Weak demand, intense competition may dent Hero MotoCorp's margins

Lacklustre wedding season, intense competition likely to dampen sales

A muted wedding season, coupled with increasing competitive intensity and market share loss, is expected to weigh on Hero MotoCorp’s sales and margins. India’s largest two-wheeler maker is expected to report a 13 per cent year-on-year fall in volumes this month, the highest decline as compared to peers. Bajaj Auto and TVS Motor are expected to register sales growth of three to 15 per cent. 

After weak sales in the December quarter and in January, retail sales (barring South India) continues to fall, by 8 to 10 per cent, believes Motilal Oswal Securities. The two-wheeler segment has the highest inventory