Hero MotoCorp to increase prices of products due to high input cost1 min read . Updated: 22 Jun 2021, 07:45 PM IST
- Hero MotoCorp will make an upward revision in the ex-showroom prices of its motorcycles and scooters, with effect from July 1, 2021
Hero MotoCorp Ltd – country’s largest two-wheeler manufacturer – on Tuesday announced decision to increase prices of its motorcycles and scooters by up to ₹3000 as a result of sustained increase in prices of commodities like steel, copper and others.
The announcement of Hero comes a day after Maruti Suzuki India Ltd, country’s largest car maker, decided to increase prices of its vehicles from July.
“Hero MotoCorp will make an upward revision in the ex-showroom prices of its motorcycles and scooters, with effect from July 1, 2021. The price hike has been necessitated to partially offset the impact of continuous increase in commodity prices. The company continues to drive cost savings program aggressively, in order to minimize the impact on the customer," the company said in regulatory filing.
It also said that the price hike across the range of motorcycles and scooters will be up to ₹3,000 and the exact quantum of the increase will depend on the basis of the model and the specific market.
Earlier in March, Hero decided to hike price of its products as increase in commodity cost was adversely impacting the cost of operations.
The auto industry came under pressure from the first week of April when Maharashtra began strict lockdown measures. Delhi, Haryana, Karnataka, Tamil Nadu and others followed suit. Maruti Suzuki, Hero MotoCorp Ltd, Hyundai and others either stopped production or reduced output significantly.
Some like Bajaj Auto Ltd, however, continued to operate with limited capacity to meet export orders. With a steady drop in infections, especially in north and south India, most automakers have resumed operations from the middle of May.
The entry level motorcycle segment has already witnessed slowdown in demand in the last six months as result of increase in prices of vehicles and resumption of public transportation in the rural areas. This current price increase is expected to impact demand further.
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