"We have been trying to absorb rising commodity prices, but it has reached a stage where we need to pass it to the customers," Hero Honda MD Pawan Munjal said. Most of the company's models, including Splendor Plus, Passion Plus, CBZ, Ambition and Hunk will see an increase in prices. "Even when the excise duty on two wheelers was cut (from 16 per cent to 12 per cent), we had passed on the entire benefit to the customers," Munjal said. He said the recent hike in the interest rates will make it more difficult for the two-wheeler industry and the company is looking at ways to overcome challenges by tying up with more regional and local vehicle financing partners. |
High interest rates and non-availability of finance from banks for two wheelers have hurt the industry last fiscal.