Hero MotoCorp, the world's largest two-wheeler maker, has witnessed sales of 100,000 motorcycles and scooters online within five months of partnering with online retailer Snapdeal.
The online sales have come as a boost to the company at a time when its offline sales are struggling. The response is expected to motivate other automakers to sell motorcycles online.
The value of vehicles sold online by the Delhi-based Hero MotoCorp is estimated at Rs 500 crore at an average of Rs 50,000 per unit.
Hero MotoCorp sells Passion Pro, Splendor Plus, Karizma and Ignitor on Snapdeal, which sees two-wheeler sales going up in India as a result of the trend.
"We partnered with Hero Motocorp in December, 2014 to launch their motorcycles online. The response from our customers has been fantastic. I believe this hybrid model, where Snapdeal becomes the e-commerce platform for the wide dealership network will give a fillip to the two wheeler sales in India," Tony Navin, senior vice-president (electronics and home) at Snapdeal, told Business Standard.
At the time of the deal, Snapdeal had already partnered with other domestic automakers to sell brands such as Mahindra & Mahindra's Scorpio, Rodeo scooter, Centuro motorcycle.
Encouraged by the response, the company is currently working on developing its own online retail sales platform, which is expected to roll out later this year.
"This is the first time we experimented with the online platform and the response has been phenomenal. We are developing our own online channel and experimenting with setting up a virtual showroom soon," said a spokesperson for Hero MotoCorp.
Online presence will enable people to know the full product portfolio of Hero motorcycles and scooters compared to fewer options available offline, Snapdeal's Navin added.
Hero MotoCorp is also offering free insurance for those who buy its vehicles online.
The success of Hero MotoCorp may encourage other automakers to go online as the number of customers buying goods on e-commerce sites is increasing at a fast pace.
Last week, Snapdeal signed a deal with Piaggio Vehicles to its sell scooters online.
