📷 Image Credits: Benzinga India
Hero MotoCorp Ltd., one of India’s leading two-wheeler manufacturers, has announced a price increase for select motorcycles and scooters, effective from July 1, 2024. The company revealed that the ex-showroom prices of certain models would be revised upwards by up to ₹1,500, depending on the specific model and market. This decision marks the third time in the past year that Hero MotoCorp has adjusted its prices, citing escalating input costs as the primary reason. The automotive industry has been grappling with significant increases in raw material prices, particularly metals, since 2023.
Steel prices surged in 2023 due to supply constraints and increased demand post-pandemic recovery. Nickel, a key component in battery production for electric vehicles, experienced price volatility, reaching multi-year highs in early 2024 due to geopolitical tensions and supply chain disruptions. These price hikes have prompted manufacturers to pass on the costs to consumers, reflecting the ongoing challenge of managing increased input costs while staying competitive in the market.
Despite facing rising raw material costs, Hero MotoCorp has witnessed a resurgence in demand since late 2023, attributed to improved economic conditions, pent-up demand, and strategic product launches. The company’s ability to balance cost pressures with consumer demand will be crucial for sustaining growth in a volatile raw material price environment. The rise in metal prices has been driven by factors like supply chain disruptions, increased global demand, and geopolitical tensions among major powers.
As the industry navigates these challenges, manufacturers like Hero MotoCorp will need to find ways to manage costs while meeting consumer demand in a highly competitive market. With the upcoming price hike on select motorcycles and scooters, it remains to be seen how this move will impact the company’s sales momentum and market share in India’s two-wheeler market.
