Thursday, January 27, 2022

Hero MotoCorp: Hero MotoCorp announces price hike, will be expensive from this date

Hero MotoCorp, the world’s largest two-wheeler maker, on Thursday announced that its motorcycles and scooters will become costlier across the country from January 4, 2022. The company said the price hike will be up to Rs 2,000 depending on different models and markets.

As claimed by Hero MotoCorp, the hike in prices has been necessitated due to rising raw material cost. Hero MotoCorp, in a release, claimed that the hike in prices has been claimed to partially offset the impact of continuous hike in commodity prices.

Price hiked for the third time

Hero MotoCorp has increased the prices of its two-wheelers for the third time in six months. The domestic two-wheeler major had on July 1 this year increased the ex-showroom prices of its motorcycles and scooters by up to Rs 3,000.

After this, the prices were increased once again on 30 September. In a second price hike, the automaker increased the price of its two-wheelers by up to Rs 3,000. In both the previous instances of price hike, Hero MotoCorp cited rising cost of raw materials as the reason for the increased cost of production.

Many automakers announced

Among two-wheeler manufacturers in India, Kawasaki and Ducati have announced a price hike to be effective from January next year. Other automakers like Tata Motors, Toyota, Volkswagen, Skoda, Citroen, Honda Cars India, Renault, Mahindra & Mahindra have also announced price hikes for their vehicles with effect from January next year.

Beginning in 2021, several automobile manufacturers across segments increased the prices of their vehicles in an attempt to offset the impact of poor sales performance due to the COVID-19 pandemic in 2020.

raw material price

Meanwhile, raw material cost, which is believed to be the reason for the hike in vehicle prices in India, was expected to remain at a multi-year high in the first half of the current fiscal. However, according to a report by rating agency ICRA, the forecast was that raw material prices would soften in the second half of the current fiscal.

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