Hero MotoCorp's entire Indian portfolio becomes costlier: What's the reason?
Hero MotoCorp has increased the prices of all scooters and motorcycles in its Indian portfolio by up to Rs. 1,000. This happens to be the fifth price revision by the brand in a span of one year. This move by the homegrown automaker is done to offset the rising input costs. The exact hike amount varies depending on the variant.
Why does this story matter?
Hero MotoCorp is one of the largest two-wheeler manufacturers in the world in terms of sales figures. The brand holds about 37% of the Indian market. In fact, the automaker is the only Indian brand to exceed 100 million units in production. However, the sales might soon be impacted by a repeated rise in costs of its motorcycles and scooters in recent months.
Rising input costs might diminish sales
Hero MotoCorp, along with every other automaker around the globe, has been bearing the brunt of recent inflation. Due to the disruptions posed by the semiconductor shortage as well as with other supply chain constraints, manufacturers are increasing the prices of their products, to partially offset the effect. Evidently, this has led to a decline in overall sales over the past few months.
Popular models of the brand will be impacted
The Splendor range of motorcycles is one of the best-selling ones for Hero MotoCorp in India and is highly sought in the rural market for its ease of maintenance and high fuel efficiency. The company averages a sale of more than 10 lakh units per year for Splendor models alone. With the recent price revisions, people might start opting for other affordable alternatives.
A look at the new prices
After the newest price revision, Hero MotoCorp's motorcycle range starts at Rs. 55,450 for the HF 100 model and goes up to Rs. 1.52 lakh for the flagship XPulse 200 4V Rally Edition. Meanwhile, the scooter range begins with the Pleasure Plus at Rs. 66,250 and goes up Rs. 85,948 for the Maestro Edge 125's top-spec variant (all prices, ex-showroom).
