Hero MotoCorp has been served with a demand notice of approximately Rs 605 crore by the Income Tax Department. The notice, dated March 30, 2024, was received by Hero MotoCorp on April 3, 2024, covering six assessment years. The company disclosed this development in a stock exchange filing, stating that it is currently examining the notice and intends to take necessary actions, including filing an appeal or rectification application.
Assessment Years and Tax Details
The demand notice from the Income Tax Department relates to alleged violations for assessment years ranging from 2013-14 to 2017-18 and 2019-20. It includes a tax demand of Rs 308.65 crore along with interest amounting to Rs 296.22 crore.
Hero MotoCorp’s Sales Performance
In the financial year 2023-24, Hero MotoCorp continued its dominance as the world’s largest scooter and motorcycle manufacturer. The company reported a total of 56,21,455 units sold, encompassing both domestic sales and exports. Notably, its sales witnessed a 10% increase in the fourth quarter of FY 24, while its global business surged by 16% throughout the fiscal year.
Focus on Premium Motorcycle Segment
During the past financial year, Hero MotoCorp strategically expanded its product portfolio in the premium motorcycle segment. It introduced several new models, including the Xtreme 125R, Xtreme 200S, Xtreme 160R 4V, Harley-Davidson X440, Karizma XMR, and Mavrick 440. Additionally, the company bolstered its retail network by inaugurating 75 Premia outlets and launching over 400 Hero 2.0 stores, enhancing its reach and customer engagement.
