India’s largest two-wheeler manufacturer, Hero MotoCorp has announced that it will be increasing prices of its motorcycles and scooters from December 01, 2022. Prices will be increased by up to Rs 1,500 and will vary based on the specific model and market.
This will be the fourth price hike for Hero motorcycles and scooters in 2022. The last price hike was in September, when prices were increased by up to Rs 1,000. At that time too, the reason for the price hike was stated to be rising cost inflation. Hero MotoCorp Dec 2022 price hike will be applicable to almost all their two wheelers, including top sellers like Splendor, Passion, HF Deluxe, Pleasure, Destini, etc.
OEMs usually try to absorb rising cost inflation as much as possible, since it has potential to impact sales. OEMs can optimize processes and reduce production cost to deal with rising cost inflation. Overall, the aim is to minimize the impact on consumers. However, at times it is just not possible to avoid a price increase. This is usually done to ensure business sustainability.
As a means to cushion the impact of price hike on consumers, Hero MotoCorp has said that it will continue to provide innovative financing solutions. It is likely to include option of minimal down payment and competitive interest rates. There could be some special offers available at the dealer level as well.
Hero has also launched online exchange program, which is another great way to reduce overall cost of acquisition. The exchange program covers most scooters and motorcycles that are less than 15 years old. Users just need to provide some details about the condition of their bike to get an instant quote on the exchange value. Hero’s exchange program is a great help to those looking to buy a new bike or upgrade to a larger capacity model.
To protect consumers from future price hikes, Hero has launched an accelerated savings program within the organization. It will not only help absorb further cost impact, but will also result in improved margins. In view of prevailing economic conditions, Hero expects increased demand for two-wheelers in the future. It is anticipating an increase in sale volumes in coming quarters.
Hero has already ventured into EV space with launch of Vida electric scooter. It is currently available for sale in Bengaluru, Delhi and Jaipur. Other cities will be covered in the coming months. An electric bike is also under development in collaboration with California (USA)-based Zero Motorcycles. Investments worth up to US$60 million have been allocated for Zero Motorcycles, which will be utilized for design and development of Hero’s first electric motorcycle.
In ICE segment, Hero is expected to launch Xpulse 400 and Xtreme 400S. These have been spotted on road tests. Another major project is a new 350cc bike being developed in collaboration with Harley-Davidson. The bike is currently in advanced stage of development. It will have Harley’s signature design aesthetics and sold via Harley dealerships. It will primarily rival Royal Enfield 350cc bikes.