Hero MotoCorp will revise the price of its complete product portfolio due to increase in input cost and the falling value of rupee. The price will be hiked by upto INR 900 depending on the product and the city in which it is sold. The revised prices will come into effect from October 3, 2018.
Earlier this year, Hero MotoCorp had announced price hikes on two different occasions. The first hike, of INR 400, was announced in January. The second hike was of INR 625 and it was announced in April.
The latest hike will result in a higher ex-showroom price that will result in an expensive on-road tag. Do remember that the on-road prices of the products from all the manufacturers increased after the Insurance Regulatory and Development Authority (IRDA) made five-year third-party insurance mandatory. Previously, the insurance coverage was compulsory for one year.
The new insurance terms were announced after an order from the Supreme Court of India made the third party insurance cover for two-wheelers compulsory for a period of five years.
The price hikes, however, did not affect Hero MotoCorp’s position in the Indian market as the two-wheeler brand continues to lead the motorcycle sales. The company registered a marginal rise in total sales in August 2018. The company sold 685,047 units in August 2018, against 678,797 units in the corresponding month last year, registering a growth of 0.92%.
Hero MotoCorp aims to boost its sales during the festive season this year by launching two new 125cc scooters in the Indian market – Destini 125 and Maestro Edge 125. The Hero Destini 125 will be offered as a premium family scooter while the Maestro Edge 125 will appeal to younger audience.
Hero MotoCorp also aims to grab a share of the 200-300cc segment of the Indian motorcycle market. The company has already launched the new Xtreme 200R with a competitive price tag of INR 89,900, making it the most affordable 200cc motorcycle in India. The two-wheeler brand is reportedly planning to launch four motorcycles in the 200-300cc segment over the next 18 months.