Tuesday, 24 April 2018

Hero, Honda may hike bike, scooters prices


24/4/2018

PUNE (MUMBAI): Two of India’s biggest two-wheeler makers, orp aHero MotoCnd Honda Motorcycle & Scooter India (HMSI), may hike prices of their motorcycles and scooters to offset the impact from a rise in raw material costs.

The possible hike comes shortly after TVS Motor Company and Bajaj Auto, the country’s third and fourth largest two-wheeler firms respectively, raised prices earlier this month. Hero had earlier raised prices in January by an average of Rs 400 per model across motorcycles to partially offset rising input costs.

“There is pressure from commodity prices. We are closely watching the rise in prices," said YS Guleria, Sr. VP Sales & Marketing, HMSI. Chennai-based TVS Motors had cashed in on the new found success of the Apache RR 310 to raise its prices by around Rs 8000. The motorcycle is the costliest product from the company at Rs 2.13 lakh (ex-showroom, Mumbai).

At the same time, it had reduced the prices of its struggling product Wego by Rs 2,000 in the hope to position it more competitively. The company had merely stated that the hike was not across all products but only select models.

Pune-based Bajaj Auto raised its prices by a maximum of Rs 2,000 which was seen on the Dominar. This was followed by a hike in prices of the Pulsar RS 200, Avenger 220, Pulsar NS 200, V15 and Platina.

Two-wheeler companies are finding it difficult to contain raw material costs which have been steadily rising since the past few quarters. In addition the robust rise in volumes in recent months has given the confidence to these companies to initiate a hike.

As per data supplied by the Society of Indian Automobile Manufacturers (SIAM) two wheeler volumes jumped 15 per cent last year to cross 20 million for the first time ever as compared to 17.58 million units clocked in 2016-17.

A stronger ramp up in production aided by steady introduction of new and updated models has helped the industry clock healthy volume growth. Other two-wheeler makers such as Royal Enfield, Yamaha and Suzuki will likely follow suit and raise prices accordingly.

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