Two-wheeler major Hero MotoCorp on Wednesday said it will raise two-wheeler prices with effect from January 1, 2021. The company cited a steady rise in commodity costs across the spectrum, including steel, aluminium, plastics, and precious metals as the reason for the upcoming price rise.
"We have already accelerated our savings programme under the 'Leap-2' umbrella, and will continue to work on mitigating the impact, with the objective to reduce the burden on the customers and protect our margins," the company said.
"In order to partially offset the impact of the commodity costs, we will be increasing the prices of our products by upto Rs 1,500, with effect from January 1, 2021. The increase will vary across models, and the exact quantum will be communicated to our dealers in due course."
This comes a day after automobile major Mahindra & Mahindra (M&M) announced that it will increase the price of its vehicles from January 1, 2021.
The revision will affect its range of 'Passenger and Commercial Vehicles', across models.
"This has been necessitated due to the increase in commodity prices and various other input costs," a company statement said.
"Details of the price increase across different models will be communicated in due course,” it added.
Last week, Maruti Suzuki also announced that it will hike prices of its vehicles in January 2021. India’s largest automobile maker said in a statement at the time that the hike is because over the past year, the cost of the company’s vehicles has been impacted adversely due to increase in various input costs.
“Hence, it has become imperative for the company to pass on some impact of the above additional cost to customers through a price increase in January 2021,” the company said.
The price increase shall vary across different models, the statement added.
This comes after passenger vehicle sales in India increased by 4.6% in November thanks to the festive season, which resulted in a pickup in demand. These figures were shared by the Society of Indian Automobile Manufacturers (SIAM).