Hero MotoCorp announces price increase for its two wheelers (motorcycles and scooters) wef July 1, 2021
With Q2 FY22 fast approaching, manufacturers are using the time to announce impending price hikes. The latest to do so is Hero MotoCorp. Starting at the fag-end of FY20, auto manufacturers found themselves slumped to zero activity. An absolute lockdown meant a majority of manufacturing activity came to an abrupt halt. For the auto industry it was an absolute end to manufacturing right until May 2020 when manufacturing resumed in a phased manner.
Following a few months of increased production and sales, the start to FY22 was yet again dampened. And while things are starting to look up, there’s no telling when the market can recover. In the meantime, manufacturing costs continue to be impacted. Given the circumstances, Hero MotoCorp has announced an upward revision to ex-sh price of its motorcycles and scooters. The announcement comes into effect on July 1, 2021.
Price revision in Q2 FY22
Price revision for its motorcycles and scooters portfolio will be up to Rs. 3,000. Exact quantum of increase varies on model, and market specifics. Price of almost all scooters and motorcycles are expected to increase, including that of their best sellers like Splendor, Passion, HF Deluxe, Destini and even of their premium portfolio like Xpulse, Xtreme.
Price hike has been necessitated to partially offset impact of continuous increase in commodity prices. And as is the norm, now some of this cost is being passed onto the customer. Hero MotoCorp’s cost savings programme continues to minimize impact on customer.
This being Hero MotoCorp’s third upward price revision in 2021, and second for FY22. Going forward, it’s most likely that further price revisions are to be announced in the current fiscal. Depending on product and city, potential hike for Hero’s two wheelers are upto over 5 grands since the start of FY22.
Resuming production after lockdown
Hero MotoCorp enjoys market dominance when it comes to sales. And two wheeler wholesales were already beginning to take a stride forward once lockdown was relaxed. With markets reopening yet again, this is what manufacturers would be looking forward to. India’s two wheeler market collectively boasts of huge numbers, thereby offering some sense of stability as operations return to normal.
In May 2021, the manufacturer reported sales of 1,83,044 units. The month prior, sales was reported at 3,72,285 units. This is attributed to production closure since end of April ‘21.
Production at its 6 plants in India resumed through the latter half of May. Earlier in the year, Hero MotoCorp had announced its plans to launch multiple new and refreshed products each year. One can expect multiple announcements regarding the same in the months to come.