Companies

Hero MotoCorp to increase prices up to ₹3,000 from July 1

Our Bureau. New Delhi | Updated on June 22, 2021

The hikes will depend on the model and specific market

The country’s largest two-wheeler manufacturer, Hero MotoCorp on Tuesday said it will hike prices of all scooters and motorcycles up to ₹3,000 effective July 1, due to continuous increase in commodity prices.

“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 model and the specific market,” the company said in a statement.

The upward revision will be in the ex-showroom prices of its motorcycles and scooters, it said.

“The price hike has been necessitated to partially offset the impact of continuous increase in commodity prices. The company continues to drive its cost savings programme aggressively, in order to minimise the impact on the customer,” it added.

This is the second time that the company has increased the prices in recent times.

In April, the company had revised the ex-showroom prices of its motorcycles and scooters by up to ₹2,500 sighting similar reasons of increased commodity costs.

With the fluctuating economic factors, companies across industries have been working to manage costs.

Maruti Suzuki India, on Monday had said that the company's vehicles continue to be adversely impacted due to increase in various input costs, and hence, it has become imperative for it to pass on some impact of the above additional cost to customers through a price rise.

“The price rise has been planned in quarter two and the increase shall vary for different models,” it had said.

Recently, Tarun Garg, Director (Sales and Marketing) at Hyundai Motor India (HMIL) had told BusinessLine that the company has cost pressure from all sides due to various economic reasons, but the company would not make any price revisions right now.

“The cost pressures are there, everybody knows that because of the commodity prices, but at the same time we at HMIL, are trying to hold it as much as possible. We will watch the situation carefully and take an appropriate decision at the right time…as of now we are holding on to the current prices,” he said.

However, as the situation becomes tougher due to rise in costs, not only Hyundai, but other manufacturers may also announce a price revision soon.

Published on June 22, 2021

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