Hero MotoCorp Continues To Surge After Claiming To Sell 10,000 Units On Re-Opening

Shares of Hero MotoCorp rose as much as 7.1 percent on Wednesday to an intraday high of Rs 2,265 apiece. It is the stock's third consecutive day of gains and has surged over 15 percent from Friday's close of Rs 1,963.95.

The surge comes after the two-wheeler manufacturer on Sunday provided an update on its operations.

Hero MotoCorp: Quotes, News

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Hero MotoCorp in a stock exchange filing said that it has commenced its retail operations with the re-opening of more than 1,500 customer touchpoints including authorized dealerships and service centres.

"These outlets contribute to around 30% of the Company's total domestic retail sales," it said, adding that "10,000 units of motorcycles and scooters have already been sold since the reopening of these customer touch points."

Hero MotoCorp also said that it had started making vehicle dispatches from its manufacturing facilities for the
current fiscal year 2020-21 on 7 May.

All of its manufacturing facilities across the globe had halted operations since 22 March 22 as a preventive measure against the spread of COVID-19.

"On May 4, Hero MotoCorp became the first two-wheeler manufacturer in the country to resume operations after it reopened three of its manufacturing plants at Dharuhera and Gurgaon in Haryana and Haridwar in Uttarakhand," it said.

In an interview with Bloomberg, Hero MotoCorp chairman and MD Pawan Munjal said that the company will re-open all of its eight factories, across the globe, in the next one month. He also said that he has asked the government to reduce taxes on motorcycles to push demand.

Last week, Hero MotoCorp increased prices of all its current models by around Rs 750 to Rs 2,800 on its website.