Hero MotoCorp to raise prices by up to Rs 2,000 from January 2020
Following Hero MotoCorp’s announcement, competitors like Honda 2Wheelers India, Bajaj Auto, and TVS Motor are also expected to announce a similar move.
Indian two-wheeler manufacturer, Hero MotoCorp has confirmed that it will raise prices of its product portfolio starting January 2020. The company will be raising prices of its products like the Splendor, Xtreme 200R, Destini 125, and Maestro Edge 125 by up to Rs 2,000.
The exact amount of price hike will depend on the model, variant, and specific market. Manufacturers usually raise their prices ahead of a major policy upgrade in a phased manner instead of a single big jump. A price hike announcement like this will also help manufacturers boost their sales in December.
Recently, Hero MotoCorp also launched its first BS-VI compliant motorcycle, the Splendor iSmart. The new motorcycle claims an 80 percent reduction in Sulphur-based emission. Further, the motorcycle has also reduced its carbon monoxide and NOx based emissions by 45 percent and 25 percent respectively.
Splendor iSmart also gains a throttle position sensor, engine oil temperature sensor, air inlet temperature sensor, and a lean-angle sensor. The latter adds to the safety net of the motorcycle by switching off the ignition in case of a fall.
This move by Hero MotoCorp comes days after Maruti Suzuki, Kia Motors, Tata Motors, and Mahindra & Mahindra announced a similar price hike. The Gurugram-based two-wheeler manufacturer had earlier confirmed that it will not participate in the upcoming Delhi Auto Expo in February 2020. The company had said that it wants to prioritise resources towards meeting business objectives for the benefit of customers and other stakeholders.
Hero MotoCorp’s domestic sales in November 2019 dropped by over 15 percent to 5,05,994 units. In the same month last year, the company sold 6,01,045 two-wheelers. Following a strong sales performance in the festive month of October 2019, Hero has reduced its inventory to lowest ever in the last two years.
The company is also focussing on decreasing its dependence on the domestic market to more lucrative export markets. At present, exports account for a mere 3 percent of its total production. It aims to increase that to 10 percent in the next three to four years.
(Edited by Suman Singh)
