Hero MotoCorp will make an upward revision in the ex-showroom prices of its motorcycles and scooters, with effect from September 20. The price hike is across the range of motorcycles and scooters and will be up to Rs 3000.
The company in a press release said that the hike has been necessitated to offset the impact of steadily increasing commodity prices. It has also mentioned that the exact quantum of increase will depend on the model and the market. "With several positive indicators, the Company remains optimistic about demand as it gears up for the upcoming festive season", read the press release.
At the beginning of the month, the company reported a 22 percent dip in total sales at 4,53,879 units in August as compared with same month last year. The company had dispatched 5,84,456 units to its dealerships in August 2020.
The country's largest automaker Maruti Suzuki also increased its prices in September right before the festive season which begun with Ganesh Chaturthi on September 10.
Tata Motors, Honda Cars, Mahindra & Mahindra, Renault, and Toyota had also raised prices in the July-August period. The hikes had been exercised to negate the increase in raw material costs such as steel and precious metals.
Commodity prices are expected to remain at multi-year highs in the first half of FY22 (resulting in multi-year high average in FY22), before softening in the second half of the year, as per a report shared by rating and market intelligence company ICRA.
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