Hero MotoCorp is now banking on the upcoming festive season to register strong sales.
Hero MotoCorp has announced an increase in the ex-showroom prices of its motorcycles and scooters, with effect from September 20, 2021.
Price hike of up to Rs 3,000
Hike due to rising input prices
Hero is now banking on festive season
This is the fourth price hike by the two-wheeler market leader this year following the previous increases inJanuary (by up to Rs 1,500), April (by up to Rs 2,500) andJuly (by up to Rs 3,000). The company has cited rising input prices as the reason for the increase, similar to passenger vehicle market leader Maruti Suzuki, which has effected three price hikes in the year to date.
In a statement, Hero MotoCorp said, “The price hike has been necessitated to offset the impact of steadily increasing commodity prices. The price hike across the range of motorcycles and scooters will be up to Rs 3,000. The exact quantum of increase will depend on the model and the market.”
In August 2021, Hero MotoCorp sold a total of 4,31,137 units, down 24 percent on year-ago sales (August 2020: 5,68,674). However, the company is in positive territory when it comes to cumulative April-August 2021 sales: 18,01,052 units, which is 11.49 percent up on year-ago sales (April-August 2020: 16,15,357). These cumulative sales comprise 16,78,605 motorcycles and 1,22,447 scooters.
In terms of overall two-wheeler market share, Hero MotoCorp is the leader with 36.10 percent, ahead of Honda Motorcycle & Scooter India, which has a 25 percent share. Hero has a market-leading 49 percent share in motorcycles, ahead of next-placed Bajaj Auto (19 percent) and HMSI (16 percent). In the scooter market, Hero with an 8.68 percent market share is fourth in the pecking order after HMSI (49 percent), TVS Motor Co (19.50 percent) and Suzuki (16.34 percent).
The company is now banking on the upcoming festive season to register strong sales. Over to the price-conscious two-wheeler buyer in India.