Shares of Hero MotoCorp and TVS Motor surged in early trade on Friday, a day after the two-wheeler manufacturers recorded robust sales in May, which beat analysts' estimates.

Shares of Hero MotoCorp surged as much as 3.95% to hit an intraday high of ₹2,911.65 apiece on the BSE on Friday, a day after the company reported an increase in sales by 7% to 5,19,474 units May as against 4,86,704 units sold in the same period last year.

On Friday, the scrip opened at ₹2,827.05, up 0.93%, as against the closing price of the previous session at ₹2,800.95. At present, shares of Hero MotoCorp are trading 1.7% lower than the 52-week high that, the company touched on August 18 last year. The share price is trading 28.5% higher than the 52-week low of ₹2,246.75, which the company touched on March 28, this year. During the session on Friday, the company’s market capitalisation stood at ₹57,754.24 crore with 48,992 shares exchanging hands on the BSE as against the two-week average of 0.76 lakh shares.

Meanwhile, shares of TVS Motor surged 2.9% to hit an intraday high of ₹1,309.85 apiece on the BSE, a day after the company registered a 9% YoY increase in sales to 3,02,982 units in May as against 3,30,609 units in the same period last year.

Hero MotoCorp's domestic sales in May grew by 8.9% year-on-year to 5,08,309 units as against 4,66,466 units in May 2022. However, the exports witnessed a de-growth of 44.8% YoY to 11,165 units as against 20,238 units in the same period last year. In the motorcycle segment, the company witnessed a marginal increase in sales by 8.2% YoY to 4,89,336 units as against 4,52,246 units in May last year. In the scooter segment, the company’s sales, however, declined by 12.5% to 30,138 units as against 34,458 units in the same period last year. During the month, Hero MotoCorp introduced the OBD-II & E20 compliant XPulse 200 4V. This is in line with the company's commitment to bring cleaner and technologically advanced mobility solutions.

"The momentum is expected to continue in the coming months, driven by an uptick in customer sentiments, forecast of normal monsoon and a host of new launches in the premium segment," the company said.

In line with its plan for global business expansion, the company announced Motosport SA as its partner in Costa Rica – a key market in Central America. As the exclusive distributor for the sale and service of Hero MotoCorp, Motosport SA will play a key role in the rapid expansion of Hero’s network in Costa Rica.

Meanwhile, TVS Motor registered a growth of  32% in domestic sales increasing from 191,482 units in May 2022 to 252,690 units in May 2023. Total two-wheelers sales registered a growth of 11% with sales increasing from 287,058 units in May 2022 to 319,295 units in May 2023. TVS motorcycle registered sales growth of 9% with sales increasing from 148,560 units in May 2022 to 162,248 units in May 2023. Scooter sales registered a growth of 3% with sales increasing from 100,665 units in the month of May 2022 to 103,203 units in May 2023.

In the electric vehicle segment, TVS iQube electric recorded sales of 17,953 units in May 2023 as against sales of 2,637 units in May 2022. TVS iQube has a healthy booking pipeline of over 30,000 units. The company has hiked the price of TVS iQube by ₹17,000-22,000 from June 1, following a reduction in FAME-II (Faster Adoption of Manufacturing of Electric Vehicles in India) subsidy for electric two-wheeler makers.

Meanwhile, the total sales of Honda Motorcycle & Scooter India stood at 3,29,393 unitsThis includes domestic sales of 311,144 units and 18,249 units in exports.

"The segment has outperformed the overall auto sector in May’23 with retail growth of 3-5% YoY. This is attributable to healthy demand in urban and the low base of last year. The marriage season demand, which contributes 20-25% of the sales in key regions of UP, Bihar, MP, etc., has not been effective this month," Motilal Oswal said in a statement.

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