After Royal Enfield and Honda 2Wheelers, it's TVS Motor that has announced a hike to the on-road prices. The increase in the prices is the effect of the Insurance Regulatory and Development Authority (IRDA) making five-year third-party insurance mandatory. Previously, the insurance coverage was compulsory for one year.
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The new insurance terms were announced after the Supreme Court of India made the third party insurance cover for two-wheelers compulsory for a period of five years. The mandatory insurance premium on Royal Enfield motorcycles is in the range of INR 7,781 to INR 17,558. Meanwhile, Honda 2Wheelers’ highest selling scooter, the Activa, saw an increase in the range of INR INR 4,157-INR 6,266.
With the new prices announced, TVS Motor’ best selling scooter, the Jupiter witnessed a price hike of INR 4,494 while the new Ntorq 125 got expensive by INR 3,736. The Apache RTR200 4V's prices were increased from INR 1.14 lakh - INR 1.29 lakh to INR 1.18 lakh - INR 1.32 lakh (all prices are on-road, Mumbai).
|Model||Previous on-road price||New on-road price|
|XL 100||INR 38,600||INR 45,738|
|Scooty Pep+||INR 48,100||INR 54,203|
|Scooty Zest 110||INR 58,900 - INR 60,600||INR 66,226 - INR 67,995|
|Jupiter||INR 63,000 - INR 74,000||INR 67,494 - INR 74,789|
|Ntorq 125||INR 76,200||INR 79,936|
|Wego||INR 62,800 - INR 67,900||INR 68,759|
|Sport||INR 47,600 - INR 57,100||INR 63,013|
|Star City Plus||INR 58,600 - INR 63,800||INR 68,528|
|Victor||INR 62,700 - INR 68,500||INR 68,864 - INR 73,003|
|Apache RTR 160 4V||INR 98,000 - INR 1.02 lakh||INR 1.02 lakh - INR 1.05 lakh|
|Apache RTR 200||INR 1.14 lakh - INR 1.29 lakh||INR 1.18 lakh - INR 1.32 lakh|
The increase in the prices after the mandatory five-year insurance is substantial. However, it covers the five-year insurance premium, and thus it's not likely to affect the buying decision of the potential customers and the festive season sales.
Meanwhile, TVS Motor Company reported an increase in year-on-year sales for the month of August 2018. The two-wheeler brand recorded 309,146 unit sales in August 2017 as compared to 330,076 units in the month of August 2018, registering a sales growth of 7 percent.