Hero MotoCorp Ltd, India’s largest two-wheeler manufacturer, has announced plans to raise the ex-showroom prices of selected motorcycles and scooters from July 1, 2024. The price adjustments are intended to counteract the impact of rising input costs.
In a filing with the Bombay Stock Exchange (BSE), the company stated that the price revision could amount to up to ₹1,500 per unit. The exact increase will vary depending on the model and specific market conditions.
Hero MotoCorp’s shares closed at ₹5,530 on Monday, marking a 1.43% increase from the previous close of ₹5,451.90. During the trading session, the stock reached a high of ₹5,533.70.
According to monthly vehicle sales data from the Federation of Automobile Dealers Association (FADA), retail sales in May 2024 saw a year-on-year increase of 2.48%, totaling nearly 1.5 million units. Hero MotoCorp maintained a dominant market position with a 29.05% share, followed closely by Honda Motorcycle and Scooter India Private Ltd with 25.45%.
The automotive industry faces challenges such as liquidity constraints, high inventory levels impacting dealer profitability, and weather-related disruptions, as highlighted by FADA research data.
India’s two-wheeler market expanded to 21.4 million units in 2023, according to the International Market Analysis Research and Consulting Group (IMARC). IMARC projects substantial growth, forecasting the market to reach 86.4 million units by 2032.
