Two-wheeler industry leader cites inflationary conditions and increased commodity costs as reason for price hikes; December 1 hike is fifth in year to date, cumulative price rise by Rs 9,500 over 11 months in 2022, varying across models and markets.
28 Nov 2022 | 10273 Views | By Ajit Dalvi
Hero MotoCorp, India’s two-wheeler market leader, announced its latest price hike on November 25. In an official statement, the company said: “Hero MotoCorp will make an upward revision in the ex-showroom prices of its motorcycles and scooters, effective from December 1, 2022. The price increase will be up to ...
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Hero MotoCorp, India’s two-wheeler market leader, announced its latest price hike on November 25. In an official statement, the company said: “Hero MotoCorp will make an upward revision in the ex-showroom prices of its motorcycles and scooters, effective from December 1, 2022. The price increase will be up to Rs 1,500 and the exact quantum of increase will vary by specific models and markets.”
The upcoming December 1, 2022 price increase on Hero MotoCorp products will be the fifth hike by the company in the year to date. It is preceded by four previous price hikes this year on January 4, April 5, July 1 and September 22, with the cumulative price increase being up to Rs 9,500 on the range of motorcycles and scooters (see price hike details below).
CY2021 saw a total of four price increases, adding up to Rs 10,000. The company has cited steadily growing overall cost inflation, including commodity prices, as the key reason for the price increases.
Prices hikes in YTD CY2022
December 1: By up to Rs 1,500
September 22: By up to Rs 1,000
July 1: By up to Rs 3,000
April 5: By up to Rs 2,000
January 4: By up to Rs 2,000
Price hikes in CY2021
September 20: By up to Rs 3,000
July 1: By up to Rs 3,000
April 1: By up to Rs 2,500
January 1: By up to Rs 1,500
In his statement on the upcoming December 1, 2022 price hike, Niranjan Gupta, Chief Financial Officer, Hero MotoCorp, said, “The upward revision of the prices of our motorcycles and scooters has been necessitated due to overall inflationary costs. We will continue to provide innovative financing solutions in order to cushion the impact on the customers. We have also put in place accelerated savings programs, which will help us to offset any further cost impact, and drive improvement in margins. Moving forward, the economic indicators are favorable to a growth in demand, and we expect industry volumes to pick up in coming quarters.”
In the first seven months of the ongoing fiscal year, Hero MotoCorp has sold a total of 3,160,103 two-wheelers, up 11.49% year on year (April-October 2021: 2,834,293). Of this, motorcycles comprise 2,950,555 units, up 12% YoY, and 209,548 scooters, up 2.66% YoY. At present, Hero MotoCorp has a 31.67% share of the overall Indian two-wheeler market – in motorcycles, it has a commanding 46% share of the motorcycle market; in scooters, it has a 6.39% market share.
Though the festive month of October saw demand revival for retail sales in the two-wheeler industry, demand from rural India for fuel-efficient, entry-level motorcycles, a key segment for the company, is yet to grow to pre-Covid levels.
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