Bajaj Auto and TVS Motor, the leading two-wheeler maker in the Indian market, had recently decided to hike the prices of their product range in the country. In recent quotes, company leaders have indicated that further increases may be in the offing.
Chennai based TVS Motor company had increased the price of its vehicles by 1.5-2 % recently. On the other hand, Bajaj Auto took similar measures in April 2011. Both of the companies have blamed the rising cost of input materials for the hike.
As per a recent statement given by H S Goindi, president, TVS Motor, "This was on account of steel and rubber price hikes and the increase in overhead costs for suppliers. We have passed on a miniscule part of the cost increase so we will definitely look at the price line again once we come to know the full extent of the impact by the end of May. We will take a call on further price revision in June."
On the other hand, market leader Hero Honda is still monitoring the situation of commodity market. Mr. Anil Dua, senior vice-president (marketing and sales), Hero Honda, said recently, "We are monitoring the commodity situation closely and keeping all our options open."
