- Hero MotoCorp has announced a price hike that will affect all motorcycles and scooters that the company offers in India.
Hero MotoCorp on Monday announced that it will hike prices of its entire range of motorcycles and scooters offered in the Indian market from July 1 onward. The price hike will impact all models offered by Hero MotoCorp, including some of the best-selling options like Hero Splendor, Hero Passion and Hero Glamor.
The decision to increase prices of all motorcycles and scooters from the Hero MotoCorp brand was communicated through an official press release issued by the company. The press statement informed that the hike in prices would be up to ₹1,500 but that the exact amount would vary from model to model. The company further explained that the decision has been necessitated ‘to partially offset the impact of higher input costs.’
Hero MotoCorp is the world’s largest manufacturer of two-wheelers and is a formidable player in the Indian two-wheeler space while also exporting from here to several foreign markets. But while India remains a huge two-wheeler market in its own right, Hero MotoCorp sales in May had come down by seven per cent (year-on-year) to 479,450 units as against 508,309 in the same month of 2023. The company made up some ground by exporting more units in May of 2024 than May of 2023 – 18,673 as against 11,165 units.
How could price hike impact Hero MotoCorp India sales?
The motorcycles in the Hero MotoCorp portfolio fare far stronger than the scooters offered by the company. The likes of Hero Splendor, Hero Passion and Hero Glamor are all power players while performance offerings like Xpulse and Xtreme are faring well too. The company also offers scooters like Destini and Pleasure+.
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But the domestic Indian two-wheeler market is quite sensitive to price changes. Earlier this month, the Federation of Automobile Dealers Associations of India (FADA) had predicted that a strong monsoon could boost rural demand which, in turn, could help the two-wheeler segment in particular. But FADA had also pointed to factors like supply constraints and lack of OEM marketing activities as hurdles.
First Published Date: 24 Jun 2024, 10:58 AM IST