If you are planning to buy bikes and scooters of Hero MotoCorp Company, then you are going to get a big setback. The company has announced that it will increase the price of its motorcycles and scooters by Rs 3000 from July 1, 2022. The company said in a stock regulatory filing that the price hike would depend on the specific model.
Announcing the hike in the prices of its vehicles on Thursday, Hero MotoCorp said the increase in cost of production due to higher raw material prices has led to the increase in vehicle prices.
The company said in a statement that “the price revision will be up to Rs 3000. The exact amount of increase will be subject to the specific model and market. Price revision has become necessary to partially offset the ever-increasing overall cost inflation including commodity prices.
Maruti Suzuki also increased the prices
Two-wheeler maker Hero MotoCorp is not the only company which has announced a price hike. In April, the country’s largest car manufacturing firm Maruti Suzuki had announced that it would hike prices during the month to offset the increase in input cost. After this other car makers also increased the prices of their vehicles.
What is the reason for the increase in vehicle prices?
Car makers had argued behind increasing the prices of their vehicles that due to the increase in the price of raw materials, the cost of production has also increased, due to which the prices of the car have increased. The Maruti Suzuki carmaker already increased the prices of vehicles by around 8.8 per cent between January 2021 and March 2022. But in April, it had hiked prices of cars across all its models by an average of 1.3 per cent.
After Suzuki, Honda also increased the prices
Maruti Suzuki aims to sell 4-6 lakh CNG units in the current financial year depending on the supply position of essential components. In addition, several other car makers also announced a hike citing a similar issue related to higher cost of living. Similarly, Honda Cars India has increased the prices of some of its flagship models such as Honda City, Honda Amaze and Honda WR-V by around Rs 11,900 to Rs 20,000.