Hero and Honda Increase the Price of their Products by a Notch

Friday 17 October 2014, 14:29 PM by

India has been a great market for motorcycles in the last few years. In this event, the number of manufacturers in this sector has grown steadily. However, this has led to Hero MotoCorp and Honda Motorcycle Scooter India increasing the price of their entire product portfolio in the two-wheeler sector. The increase is approximately in the range of 0.5 to 1 per cent. In the event the actual price difference might vary from model to model across different regions. The major contributors to this effect were the fall of the value of rupee and the increase in the transportation and operational expenditure.

Hero and Honda Increase the Price of their Products by a Notch | CarTrade.com
Hero and Honda Increase the Price of their Products by a Notch

This comes at a time when some of the popular foreign two-wheeler brands are starting to launch their products in India. An official associated with hero MotoCorp said, “We have raised the prices of some of our models by Rs 250-550. This has been done to partially recover input costs and offset the cascading effect of the consistently-rising diesel costs, which have impacted costs of in-bound and out-bound logistics, power generation and overall transportation.”

Hero and Honda Increase the Price of their Products by a Notch

The hike is however, quite reasonable and it has come after a long time. In this aspect, it might not have much of an impact on the sales of two-wheelers. Also, the companies will benefit quite a lot even if the price high is meagre. This is because of the fact that the manufacturers produce in huge numbers, which will together contribute in increased profits.

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