 "Hero, Honda hike product prices")
Hero MotoCorp increased prices in the Rs 250-550 range with effect from
September 22 on some products, except for its top-selling scooter, Maestro. The Delhi-based company attributed the price rise to rising input and transportation costs.
“We have raised the prices of some of our models by Rs 250-550. This has been done to partially to recover input costs and offset the cascading effect of the consistently-rising diesel costs, which have impacted costs of in-bound and out-bound logistics, power generation and overall transportation,” said a senior Hero MotoCorp official.
HMSI followed with a raise of up to Rs 450. However, prices of volume-driving scooters such as Activa, Dio and Aviator have been changed in the band of Rs 100-200.
Thus, HMSI increased prices of motorcycles such as Shine, Unicorn, Trigger and the Dream series with effect from September 22. Motorcycles generate half of the company’s sales, while Activa, India’s top-selling scooter, constitutes two-third of HMSI’s domestic scooter sales. While the company did not elaborate, sources say the increase in input costs and freight costs led to the increase in prices. The rise was brought into effect during the shradh period during which generally Hindus avoid new product purchases. Other two-wheeler makers like Pune-based Bajaj Auto, Chennai-based TVS Motors and Delhi-based Yamaha have so far not raised product prices.
Bajaj Auto, the country's third largest two-wheeler maker, which added a new Discover powered by a 150cc engine recently said it will not hike prices at least till Dussera. "We have not increased prices. No plan to do so till Dussera", said Eric Vas, President, (motorcycle business), Bajaj Auto.
Two-wheeler sales during the nine day Hindu festival of Navratri that began on September 25 has been 'encouraging' say dealers. A Mumbai-based dealer of Hero MotoCorp stated that 'barring a few models demand for products has been very good'.