Facing high inflationary costs, Hero MotoCorp on November 25 informed it will be increasing the ex-showroom prices of its motorcycles and scooters, effective December 1, 2022.
The price increase will be up to Rs 1,500 and the exact quantum of increase will vary by specific models and markets, the two-wheeler company said in a regulatory filing.
Announcing the price hike, Niranjan Gupta, Chief Financial Officer (CFO), Hero MotoCorp, said, “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."
"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 favorable to a growth in demand, and we expect industry volumes to pick up in the coming quarters," Gupta added.
Shares of Hero MotoCorp on Friday (November 25) ended 1.47 percent higher at Rs 2,711.85 apiece on BSE.
Earlier in September too, the company had raised the prices of its scooters and motorcycles with immediate effect, to partially offset the impact of cost inflation.
Meanwhile, the automaker had reported a 9 percent decline in its consolidated net profit at Rs 682 crore for the second quarter ended September 30, mainly due to enhanced expenses and a slight dip in sales during the period.
The country's largest two-wheeler maker had reported a net profit of Rs 748 crore in the July-September period of the previous fiscal.