India’s leading two-wheeler manufacturers Hero MotoCorp and Honda Motorcycle Scooter India have hiked the prices of their two-wheelers sold in the country. The increase in prices ranges from 0.5 to 1 per cent, though the actual amount varies according to different models. Both the manufacturers have cited the depreciating rupee and increase in transportation and operational costs as the reasons for hike.
Honda has hiked the prices of the Activa, Dio and Aviator by around Rs 100 to Rs 200 while the rest of the line-up has grown pricier by Rs 450. The 0.5 per cent price hike in Hero MotoCorp’s prices roughly translates into Rs 250 to Rs 550 per vehicle, depending on the model’s positioning.
Speaking about the hike in prices, a senior Hero MotoCorp official said, “We have raised the prices of some of our models by Rs 250-550. This has been done to partially recover input costs and offset the cascading effect of the consistently-rising diesel costs, which have impacted costs of in-bound and out-bound logistics, power generation and overall transportation.”
It has been a while since two-wheeler manufacturers increased the prices and in this instance, the hike is very reasonable. The sheer volumes that two-wheelers generate might be enough to offset the extra costs that the manufacturer has to face, especially for major manufacturers like Hero MotoCorp and Honda. Other two-wheeler manufacturers are also expected to follow the suit, and though Bajaj Motors has also hinted at a price hike, they seem to have postponed it till the end of festive season.
