Hero MotoCorp, the Indian multinational motorcycle and scooter manufacturer based in New Delhi and also the largest two-wheeler manufacturer in the world and also in India is going for a price hike for its vehicles from January 2021 in India.
The decision came in the public forum by the means of a regulatory filing with BSE Limited, has been taken given the rising input costs. The two-wheeler manufacturer with a market share of about 46% detailed that the rise in costs of commodities including aluminium components has increased manufacturing costs.
However, the manufacturer has already taken other measures as well to control the impact, a price hike is still necessary to at least somewhat dampen the impact of an increase in commodity costs.
Hero two-wheeler' prices in India will go up by INR 1,500. The company explicated that the quantum of the increase will stretch across models and the specifics of this price hike will be shared with Hero MotoCorp dealers in India soon.
In a regulatory filing, Hero MotoCorp said: "There has been a steady rise in commodity costs across the spectrum, including steel, aluminium, plastics, and precious metals. We have already accelerated our savings programme under the Leap-2 umbrella and will continue to work on mitigating the impact, with the objective to reduce the burden on the customers and protect our margins. In order to partially offset the impact of the commodity costs, we will be increasing the prices of our products by up to INR 1500, with effect from January 1, 2021. The increase will vary across models, and the exact quantum will be communicated to our dealers in due course."
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