Hero MotoCorp set to hike prices of entire bike and scooter range
Hero MotoCorp on Thursday informed it will hike prices of its motorcycles and scooters with effect from Monday, September 20. Hero MotoCorp has attributed the decision to hike prices to increase in commodity prices.
Hero MotoCorp motorcycles and scooters will be more expensive to buy from Monday, by up to ₹3,000. The exact hike in prices would depend on the model of product selected.
While the price hike is expected to have an impact on demand, also because electric two-wheelers have started making presence felt in the market, Hero MotoCorp says it remains optimistic about the festive season bringing cheer. Sales in August for the world's largest two-wheeler manufacturing company had dipped by 22% compared to figures from the same month in 2020. This is despite a better April-August FY22 figures than the same period in the last fiscal although repercussions of Covid waves have varied. (Read full report here)
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A number of OEMs in the Indian automobile sector have recently hiked prices of products offered, primarily blaming the steady rise in input costs. This includes companies playing in both passenger vehicle as well as two-wheeler segments.
While demand for vehicles has been on an upswing, there is a sense of caution in the industry and some even go to the extent of predicting that demand this festive season may not be on the lines of what has been witnessed previously.
A global shortage in semiconductor chip means that supply is a big concern as well. And this is not restricted to India but the world over. The onmipresent threat of a third Covid-19 wave in the country also remains.
The Union Cabinet on Wednesday approved a ₹26,058 crore production linked incentive (PLI) scheme for auto, auto-components as well as drone-manufacturing companies. The move has mostly been well-received in the automotive industry even if there are some who point out that it is primarily focused on the emergence of advanced automotive technologies' global supply chain in India.