Hero MotoCorp announces price revision for its range of scooters and motorcycles to the extent of Rs 3,000 wef July 1, 2022
Price hikes continue to be a necessary evil. And whether we factor them into spending, they are here to stay. In recent times, there’s been plenty of chatter around increase in prices of LPG, petrol, cooking oil, staples, dining out, flight tickets, and so on. The list is endless and parts of it affect almost everyone.
Earlier today, Hero MotoCorp announced a price revision on ex-sh price of its range of motorcycles and scooters. The price hike is effective from July 1, 2022. Price revisions in this instance are subject to model and market. And will be upto a range of Rs 3,000.
Overall cost inflation
Hero MotoCorp attributes the price revision ‘to partially offset the steadily growing overall cost inflation, including commodity prices’. The auto manufacturer dominates the market with its large volume business.
With monthly sales surpassing lakhs, this price hike directly affects lakhs of customers. In May 2022, Hero MotoCorp reported domestic sales at 4,66,466 units. To ensure that the financial burden passed onto customers isn’t intimidating, it’s passed onto customers in a phased manner.
However, a range of price revision announcements each year is no longer a phenomenon that surprises. The market has come to accept them, almost as though they’re factored into purchases. To understand why the 2W market is larger than life in India, one only needs to look at the number of total sales reported each month. In May 2022, domestic two-wheeler sales surpassed the 12 lakh unit mark. In comparison, car sales were just shy of the 3 lakh unit mark last month.
Having first announced a price revision from early January this year, the company followed it up with a similar announcement for April. Both previous price hikes were capped at 2k each on ex-sh prices. The current rise of 3k isn’t expected to be the last of the year. And the trend puts estimated price revisions through the year to an expected up to Rs 10k or more, specific to model and market.
Hero MotoCorp exports
While domestic market sales continue to stay in sight of the 5 lakh units monthly goal, the company has been enthusiastic about exports. Earlier in the week, the manufacturer announced the launch of 3 Euro V variants in Turkey. This includes an Xpulse 200 4V motorcycle, and 2 scooters – Dash 110, and 125cc.
Though not big on product portfolio in Turkey, the company sees its bikes sold through a network that surpasses 100 touchpoints. Soysal Group has functioned as an exclusive distributor of Hero MotoCorp since 2014. With exports to 40 markets, total exports last month breached the 20k unit mark.