Hero Honda Feb sales down by 5.4 per cent

Hero Honda Motors sold 265,431 two-wheelers in February, down 5.4 percent a year earlier, reports Reuters from Mumbai. Hero Honda also lowered prices of models by Rs 1,000-2,400, it said in a statement at the weekend, following a proposal in the federal budget to cut excise duty on two and three-wheelers to 16 percent from 24 percent. While lower prices would draw more buyers, interest rates remained firm and credit was still tight, MD & CEO Pawan Munjal said. “Basic factors causing the industry slowdown still remain unattended,” he said. “The credit squeeze continues to adversely impact industry growth, and we still don’t see the banks and the government of addressing this concern.”