Hero Honda has increased the prices in India in the range of Rs. 500 – Rs. 1500 depending upon its various models in the domestic market. It stated that there has been a considerable increase in input costs constantly and the rise in prices is to partially off-set those costs.
"We have always taken a long-term view on pricing, given its strategic nature. Hence we had consciously held back price increase on most of our products despite the rising input costs and hardening commodity prices," said the company spokesperson. The lowest increase has been made on models in the entry-level segment such as the Splendor, while premium models--the Karizma and the ZMR--saw the highest increase, the executive said. Hero Honda is a joint venture between New Delhi-based Hero Group and Japan's Honda Motor Co.
Meanwhile, the Hero Honda JV split has taken a new turn where the investors have expressed their protest for such a move. The companies agreed upon selling the shares at a cost lesser than the current market price. Hence the investors fear that they may be deeply affected because of this which may thus lead to an increase the royalty amount.
