Hero Honda Motors has registered a 9 per cent growth in net profit in the last quarter of 2008. The maker of the country’s most loved motorcycles, which enjoys a 56 per cent share in the two-wheeler market, benefited greatly from lowered commodity prices and the stimulus package announced by the government in December.
Unlike many other vehicle manufacturers, Hero was able to successfully use the package to its advantage even in the face of declining sales. The company did not offer any discounts and stayed away from promotional schemes in the festive season. By carrying out its manufacturing activity in the excise free zone of Haridwar, Hero Honda saved as much as Rs.277.75 crore (post excise-duty recuction).
Meanwhile, Bajaj Auto reported a drop of 22 per cent in net profit in the same period.
