Festive season to boost sales: Hero Honda

Hero Honda Motors Ltd is planning to maintain 50 percent market share in motorcycles with improvement in sales. It also expects a double-digit growth in scooter-sales.

The expectation is fuelled by the approaching festive season and the belief that interest rates have peaked.

Sales of Hero Honda, in which Honda Motor Co has 26 percent, rose 12 percent in August 2007 after being on a decline for the previous three months.

Reserve Bank of India (RBI) raised the interest rates five times since June 2006, pushing up rates on auto loans by around 300-350 basis points.