Hero Motocorp has now announced that there will be a hike in the prices of its motorcycles and scooters. The company intends to partially offset an increase in input costs.
The price increase will be effective from January 4, 2022.
Hero MotoCorp Announces Price Hike In Two Wheelers
The price hike will be applicable on ex-showroom prices of the company’s motorcycles and scooters up to Rs. 2000; the exact quantum of increase will be variable as per the model and the market.
As per the statement by the world’s largest two-wheeler manufacturer, “The price revision has been necessitated to partially offset the impact of steadily increasing commodity prices.”
Two wheeler sales are already under pressure because of the rise in acquisition costs, which is due to the transition to BSVI emission norms. The sales in the local market last month went down by 6% to 9.1 million units till November this fiscal year.
Maruti Suzuki too had said that the new year will bring with it a hike in prices, which is the fourth time the price will be increased by the company. MSIL had previously increased the prices in September, April and January 2021.
Price Hiked Due To Commodity Costs?
The prices of steel have increased to Rs 77 per kg in the third quarter of this fiscal, up from Rs 38 per kg in April/May 2020. The prices of copper have risen to $9,700 per tonne, from $5200 per tonne in May 2020. Aluminium prices have increased up to $2700-2800 per tonne from the earlier $1700-1800 per tonne.
Last year, we had reported to you that 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. 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, aluminum, plastics, and precious metals.
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.