KEY HIGHLIGHTS
- Hero announces price hike across entire two-wheeler range.
- Average increase of around Rs. 1500 per model due to manufacturing costs.
- Hero May 2024 Sales: 2024 sees 7% YoY sales dip, despite export growth.
Hero has recently announced that it will increase the prices of its entire two-wheeler range from July 1. The announced price hike will apply to all the models Hero currently offers in India. Yes, your beloved Hero Splendor, Hero Glamour and Hero Passion will also get costlier from July 1.
Hero announced the latest price hike via an official press release which mentioned that each model will receive a price hike of Rs. 1500 on its current ex-showroom price. However, the price hike will vary according to the model in some cases. The two-wheeler manufacturer mentioned the high manufacturing cost as the reason for the latest price hike. Read the details of the upcoming hike below. Also, you can join our 91Wheels WhatsApp Group to stay updated on the latest automotive news and industry insights.
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Hero MotoCorp: India's Largest Two-Wheeler Manufacturer
Hero MotoCorp has a strong hold on India's two-wheeler market and is the largest two-wheeler manufacturer in the country. The two-wheeler company also exports to other countries from India with India being the major source of revenue. Last month (May 2024), Hero witnessed a 7 per cent YoY dip in sales by selling 4.79 lakh units when compared to the 5.08 lakh units sold in May 2023. While the exports were increased from 11,265 in May 2023 to 18,673 units last month (May 2024).
Will Price Hike Impact Hero Sales?
Taking into consideration that the Indian market is quite price-sensitive, there are very less chances of Hero witnessing a dip in sales due to the recent price hike. Hero Motocorp's motorcycle portfolio is more popular than the scooter offerings of the brand. In addition to this, the brand has not made any significant price hikes in the prices.
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Verdict
Hero's decision to raise prices across its entire two-wheeler range reflects rising manufacturing costs, necessitating an increase of Rs. 1500 per model which may vary according to the offering. Despite India's price-sensitive market, Hero MotoCorp's dominant position and minimal price adjustments suggest minimal impact on sales. With motorcycles overshadowing scooters in popularity, sustained demand is expected despite the hike.
