The world's largest manufacturer of two-wheelers, Hero MotoCorp has announced that it will increase the prices of its product range by up to ₹ 1,500 with effect from January 1, 2021. The announcement comes a day after automaker Mahindra & Mahindra announced it will be hiking prices across passenger and commercial vehicles. The two-wheeler company further stated that the decision to hike prices has been taken to partially offset the impact of the commodity costs. Hero becomes the first two-wheeler maker to announce a price hike for the new year.
In a regulatory filing, Hero MotoCorp said, "In order to partially offset the impact of the commodity costs, we will be increasing the prices of our products by up to Rs 1,500, with effect from January 1, 2021. The price hike will vary across models, and the exact quantum will be communicated to our dealers in due course."
The company further added, "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."
Cyclical revisions are common around the new year amidst automakers for two-wheeler and four-wheelers. With respect to quarterly results, Hero MotoCorp reported a standalone net profit of ₹ 953.45 crore, an 8.99 per cent year-on-year increase when compared to ₹ 874.80 crore in the corresponding quarter last year. The revenue from operations stood at ₹ 9367.34 crore, registering a growth of 23.7 per cent from ₹ 7570.70 crore from over a year ago.
Hero MotoCorp sold 18.22 lakh units between July and September 2020, as demand recovered post the lockdown across the country. The two-wheeler maker also rolled out a number of offers and special edition models to revive sales further and registered its best-ever sales of over 8 lakh units during the festive period.