Hero Honda passes on excise duty cut benefit to customers

New Delhi - Passing on the excise duty cut benefit in Budget 2008 to customers, Hero Honda Motors Ltd (HHML), the world’s largest manufacturer of motorcycles, today reduced prices on all its models, ranging from Rs 1000/- to Rs 2400/-.

The company, which sold 265,431 units of two-wheelers in the month of February, reduced the price of Splendor+ by about Rs 1300/- (ex-showroom Delhi) and on Karizma by about Rs 2400/- (ex-showroom Delhi). Similarly, the price of its best-selling 150cc bike Hunk has been reduced by about Rs 1800/- (ex-showroom Delhi).

Mr. Pawan Munjal, MD & CEO, HHML, said “Hero Honda has taken the voice of the customer to the government, and consequently the excise duty on two-wheelers has been reduced to 12 per cent from 16 per cent. This is a welcome move, and we are happy to pass on the entire benefit to customers. The reduction in excise duty cut will enable us to draw more customers to our fold, but the basic factors causing the industry slowdown still remain unattended. Credit financing has been withdrawn in some key markets, while interest rates on consumer loans also remain very high. This credit squeeze continues to be the most critical factor adversely impacting industry growth, and we still don’t see any indication from the banks and the government to address this concern. For the industry to make a turnaround and get back on the path of growth, the government has to address these key issues.”

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• Hero Honda may give minor stake to Bain Capital and GIC           February 02, 2011
• Hero-Honda partnership ends after 26 years           December 18, 2010
• Hero To Buy Honda for $1 Billion           December 14, 2010
• Hero Honda Bikes Get Expensive in India           December 10, 2010
• Hero Honda reports sales of 421,366 units in November 2010           December 03, 2010
• Hero-Honda to File Divorce Finally?           November 24, 2010
• New Hero Honda Hunk Launched           October 30, 2010
• New Hero Honda Achiever Launched           October 26, 2010
• Hero Honda Launches Commonwealth Edition of Passion Pro           October 12, 2010
• New Hero Honda Splendour Launched           September 28, 2010
• New Hero Honda Splendour at Rs. 45,950           September 07, 2010
• New Hero Honda Hunk Coming Soon to Market           August 18, 2010
• Hero Honda Products to Cost More           June 10, 2010
• BS-IV Compliant Bikes Launched in India           April 05, 2010