India's Largest Two-Wheeler Manufacturer Hero MotoCorp To Hike Prices From December 1st

If you are planning to buy a motorcycle or scooter soon, you are likely to have to pay more from your pocket, as India¡¯s largest two-wheeler manufacturer, Hero MotoCorp, will raise the prices from December 1, 2022.

Hero Stock Price Rises After Price Hike Announcement

Shares of two-wheeler manufacturer Hero MotoCorp surged nearly 4% to Rs 2,804 in Monday¡¯s intraday trade on BSE after the company said that it will raise the prices of its motorcycles and scooters by up to Rs 1,500 with effect from December 1, 2022, due to inflationary cost pressures.

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Hero¡¯s stock price has surged around 14% this year to date and over 5% in the last month. Today, the stock is up nearly 2%, trading at around Rs 2,828.

"The upward revision of the prices of our motorcycles and scooters has been necessitated due to overall inflationary costs. We will continue to provide innovative financing solutions in order to cushion the impact on the customers," Niranjan Gupta, Chief Financial Officer, Hero MotoCorp, said, as per an ET report.

"We have also put in place accelerated savings programs, which will help us to offset any further cost impact, and drive improvement in margins. Moving forward the economic indicators are favourable to a growth in demand, and we expect industry volumes to pick up in coming quarters," Gupta added.

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Fourth Price Hike This Year

This will be the fourth time Hero has announced a price hike this year, as per an HT Auto report. It mentions that price hikes are common around this time of the year as manufacturers usually set up for the new calendar year. However, in the post-pandemic era, supply chain constraints still remain a reality, and input costs for raw materials have considerably gone up across the market.

According to the report, other two-wheeler manufacturers will also announce price increases.

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¡°Rate Hikes Create Negative Impact On Customer¡±

"Regular price hikes are detrimental for the market and dealers as such and create a negative impact on the mind space of the customer. They usually impact the entry level segment more where even small price hikes matter. We had decent festive retails but before going for a price hike, companies should ensure continuity of sales. It could have been better if the hikes were delayed to let's say the last quarter of the fiscal," Manish Raj Singhania, President, Federation of Automobile Dealers' Association (FADA) said, as per a Mint report.

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