 "Hero MotoCorp to hike prices of motorcycles, scooters from July 1")
Hero MotoCorp, India's leading two-wheeler manufacturer, has announced another price increase for its motorcycles and scooters, effective from July 1, 2024. The price hike will be up to Rs 1,500, with the exact amount varying based on the specific model and market.
Hero MotoCorp cites rising input costs as the main reason behind the latest price hike. The company has stated that the revision is necessary to partially offset these increased costs.
Hero MotoCorp cites rising input costs as the main reason behind the latest price hike. The company has stated that the revision is necessary to partially offset these increased costs.
This price hike follows similar revisions implemented earlier.
In October 2023, Hero MotoCorp announced an increase of around 1 per cent to offset inflation and market competitiveness. In July 2023, the company raised prices by around 1.5 per cent for similar reasons citing part of the price review that the company undertakes from time to time, keeping in mind various factors like price positioning, input costs and business imperatives.
The auto industry is facing an increase in the raw material price, since January, China’s spot steel HRC prices, a key raw material, went down by 6 per cent. However, since spot prices of aluminium, copper, zinc, and tin were up by 9.7 per cent, 12 per cent, 7.2 per cent and 28 per cent, respectively, on the London Metal Exchange (LME), input rates for the sector had gone up leading the prices to rise.
Hero MotoCorp's sales figures for the first five months of 2024 have shown an uptick in demand for most months. According to data from FADA (Federation of Automobile Dealers Associations), January to April saw a positive trend with increases ranging from 10.55 per cent in January, 5.74 per cent in February and a 24.42 per cent jump in April. However, May sales figures dipped by 16.04 per cent compared to May 2023.
Data from FADA shows the Indian two-wheeler industry witnessed a positive growth trend in the first five months of 2024. Compared to the same period in 2023, overall sales increased in all months so far. The strongest growth came in April, with a jump of 33.18 per cent reaching 16,43,510 units as compared to 12,33,763 units in April 2023. This performance can be attributed to factors like growing demand and improved market sentiment.