Hero MotoCorp shares fall over 3% as December sales decline sharply

Hero MotoCorp’s shares fell over three per cent in today’s trading session after the company reported disappointing sales figures for December. The stock dropped to Rs 4,159.90 on the BSE, reflecting investor concerns about the slowdown in both motorcycle and scooter sales.

December sales performance

Hero MotoCorp’s sales for December fell by 17.5% year-on-year, with total volumes dropping to 3.24 lakh units from 3.93 lakh units in the same period last year. Domestic sales, in particular, were hit hard, falling 22% to 2.94 lakh units. However, the company experienced a significant increase in exports, which soared by 91%, reaching 30,754 units. Despite this positive export performance, the decline in domestic sales weighed heavily on the stock’s performance.

Motorcycle sales fell by 15.8%, while scooter sales dropped more sharply by 32.8%. These declines in the company’s core segments contributed to the overall sales downturn.

Focus on electric vehicle growth

In a bid to counterbalance the decline in traditional vehicle sales, Hero MotoCorp has ramped up its electric vehicle (EV) efforts. The company reported that it sold over 46,662 units of its VIDA V1 e-scooter in 2024. As part of its growth strategy for 2025, Hero MotoCorp plans to expand its EV portfolio, alongside introducing new models in the internal combustion engine (ICE) scooter segment and further enhancing its premium portfolio.

Analysts’ outlook and stock performance

Despite the recent sales dip, analysts remain cautiously optimistic about Hero MotoCorp’s future prospects. Trendlyne data shows that 23 out of 37 analysts recommend a "buy" or "strong buy" on the stock, with an average 12-month target price of Rs 5,307—indicating a potential upside of 23% from current levels. 

SBI Securities projects a 17 per cent decline in total monthly sales and a 22 per cent drop in domestic sales, signalling short-term challenges.

The stock has fallen by 25% over the last three months but has seen a 58% surge in the past three years. Investors are looking for recovery as Hero MotoCorp continues to strengthen its export market and EV initiatives.

Key takeaways

While Hero MotoCorp’s recent sales figures were disappointing, the company’s efforts to expand its EV portfolio and focus on premium models are expected to support growth in 2025. As such, the current price drop may present a buying opportunity for long-term investors.