New Delhi: Hero MotoCorp, the largest two-wheeler maker in India, on Friday announced that it will increase the prices of all its motorcycles and scooters from December 1. This will be the fourth price hike in this financial year.
It is also likely that other two-wheeler makers like Bajaj Auto and TVS Motor Company will follow suit. Hero MotoCorp had last increased prices by up to Rs 1,000 in September.
The demand for entry-level two-wheelers is being negatively impacted by the continuous price hike as some customers are unable to afford the vehicles.
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While Bajaj Auto hasn't increased prices since July as it works to regain lost market share in the domestic motorcycle market, TVS Motor recently announced its latest round of price hikes in October. has announced.
Hero MotoCorp attributed the price hike to general cost inflation. The company said that depending on the model and market, the prices will be increased up to 1,500 ex-showroom.
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Future economic indicators point towards an increase in demand, hence we expect the industry volumes to increase in the coming quarters," said Niranjan Gupta, chief financial officer of the company.
Regular price hikes have a negative impact on the customer's mindset as well as the market and the dealers. They typically make more of an impact on the entry-level market, where even a small price tag adds up.
Federation of Automobile Dealers Association president Manish Raj Singhania said it would have been better if the price hike was postponed till the last quarter of the financial year.
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According to Vinkesh Gulati, president of research and academy at FADA, "The 42-day festive period was positive for two-wheelers, but it was not as spectacular as other segments."