Hero MotoCorp, the country’s leading two wheeler manufacturer, has announced that it will increase the ex-showroom prices across its portfolio by up to Rs 2,000 from the beginning of new year. The actual extent of the hike will depend on the model and specific markets.
The two wheeler giant did not disclose any specific reason for the price hike but it is usual for both two wheeler and four wheeler makers to start the new year with upward revision of the prices. This year, most OEMs will be implementing a considerably steeper price hike than in the previous years as they switch to BS6 emission standards.
Hero MotoCorp has already started its update campaign by introducing the Splendor iSmart BS6. The entire portfolio will be updated before the April 1, 2020 deadline. Most of the two wheelers are expected to receive electronic fuel injection in a bid to comply with the more stringent emission regulation.
The company has already stopped production of around 50 variants of BS4 products and is set to halt production of all BS4 variants soon. Hero MotoCorp is also is in the process of ramping up the production of BS6 models.
If a recently leaked document is to be believed, TVS Motor Co. is also gearing up to increase the prices across its portfolio from January 1, 2020 but the margin of hike will be much higher compared to that of Hero Motocorp’s. For instance, the BS6 compliant version of the TVS Apache RR 310 is reported to be dearer by a whopping INR 38,870.
Owing to the poor market scenario this year in general, most two wheeler makers found themselves facing raising inventory levels at dealer level. With just about three and a half months left for the BS6 deadline, both OEMs and their dealers will be doing their best to clear the old stock before flooding the market with updated versions. Despite the price increase, we are expected to see widespread discounts and attractive offers on older versions across the two wheeler industry for the next few months.
If you are in the market for a new two wheeler, you have a decision to make. Would you rather go for a heavily discounted BS4 model now, or pay a sizable premium for an up-to-date BS6 product from next year?