Hero MotoCorp Bikes Will Be Expensive By Rs 1500; Maruti, Hyundai, Kia Will Increase Price From January
We are already in December, the last month of this unprecedented, surreal year and not pretty sure that all those of you who wanted to make a vehicular purchase in 2021 are going to like the news of price hike by various auto companies on cars and bikes.
Let’s cover the two wheeler section first.
Two wheeler Price Hike
The world’s largest two-wheeler manufacturer Hero MotoCorp has declared that it will increase the prices of its products by up to Rs 1,500, with effect from January 1, 2021. This comes just a day after Mahindra & Mahindra (M&M) announced a hike in prices of its passenger and commercial vehicles. According to the auto major, the price hike decision was taken to partially offset the impact of the commodity costs across the spectrum, including steel, aluminium, plastics, and precious metals.
The exact quantum, which will vary across models, will be communicated to our dealers in due course said the auto major.
In a filing to the Bombay Stock Exchange, Hero Motocorp said , “In order to partially offset the impact of the commodity costs, we will be increasing the prices of our products by up to Rs 1,500, with effect from January 1, 2021”.
With the objective to reduce the burden on the customers and protect its margins, the company has accelerated its savings programme under the Leap-2 umbrella and is continuously working to mitigate the impact.
They had sold 18.22 lakh units during the quarter ended September 30, 2020 as compared to 16.91 lakh units during the same quarter last fiscal. However sold only 5.65 lakh units during the June quarter this fiscal, when dealerships were closed due to COVID-19-mandated lockdown.
Price Hike on Cars
Three major car players, namely, Kia Motors India, Hyundai India and Maruti Suzuki will all hike prices of their models, starting January 2021.
Price hike is commonplace for car manufacturers at the start of the calendar year due to exchange-rate fluctuations, rising input and material costs and also to increase sales in the last month of the year.
Kia’s Price Hike
Kia will hike prices for the Seltos and Sonet model and this “upward price correction” has been conveyed to its dealers. Seltos, is currently priced from Rs 9.89 lakh to Rs 17.34 lakh whereas Sonet ranges from Rs 6.71 lakh to Rs 12.89 lakh (ex-showroom, Delhi). “The expected increase will be substantial. Exact extent of price increase will be intimated on January 1” according to the statement.
Hyundai’s Price Hike
Hyundai stated that its entire range will go through the price revision due to rise in input and material costs. However the extent of price hike, depending on model, variant and fuel type; will only be known in January 2021.
Maruti Suzuki’s Price Hike
Nation’s leading carmaker Maruti Suzuki will also hike prices across its range. Hike in price will vary as per model, and they have revealed the exact price hike. Maruti hiked the prices last year too, but this year the hike shall be more substantial in the light of pandemic.