Hero MotoCorp, India's largest two-wheeler manufacturer, has announced an increase in ex-showroom prices of its motorcycles and scooters by up to Rs. 2,000 from April 5, 2022. In a press announcement, Hero MotoCorp as said that the price hike has been necessitated to partially offset the impact of increasing commodity prices. The quantum of increase in prices of Hero MotoCorp two-wheelers will depend on the model and the market, the company added. Earlier, in January 2022, Hero MotoCorp had announced another price hike of up to Rs. 2,000, citing the same impact of steadily rising commodity prices.
Also Read: Hero MotoCorp Net Profit Falls 36.7 Per Cent In Q3 FY 2022
The rising prices of scooters and motorcycles will affect both consumers and the industry, which is still reeling from the effects of the pandemic and market challenges due to rising commodity prices, inflation and high fuel prices.
The rising prices of scooters and motorcycles will be a hit to consumers, with the domestic two-wheeler industry yet to recover from market challenges, coupled with the rapid hike in fuel prices in recent days. The calendar year 2021 has been a year fraught with sluggish consumer demand, and in the third quarter results of FY 2021-2022 (October to December 2021), Hero MotoCorp reported a 36.7 per cent decline in net profit. The company reported profit after tax (PAT) for the quarter at Rs. 686 crore, as against Rs. 1,084 crore in the same quarter of the last financial year.
Also Read: Hero MotoCorp Announces Hike In Two-Wheeler Prices In January 2022
Low demand due to the pandemic and rising commodity prices are attributed to the impact on sales. Rising inflation, hike in fuel prices and increase in commodity prices and consequent hike in two-wheeler prices are not a good sign for an industry already reeling under the effects of the pandemic and related lockdowns and market challenges. Hero MotoCorp is getting ready to launch its first electric two-wheeler, which will be produced at the company's manufacturing facility in Chittoor, Andhra Pradesh. Through investments and partnerships with brands such as Ather Energy and Gogoro Inc., Hero MotoCorp is also focusing on building an EV ecosystem, from product to technology to sales and service, customer care, operations and innovation.
