A day after Mahindra & Mahindra (M&M) announced hike in prices of its passenger and commercial vehicles, Hero MotoCorp said it will increase the prices of its products by up to Rs 1,500, with effect from January 1, 2021. The decision to hike prices has been taken to partially offset the impact of the commodity costs, the auto major said.
"In order to partially offset the impact of the commodity costs, we will be increasing the prices of our products by up to Rs 1,500, with effect from January 1, 2021," Hero Motocorp said in a filing to the Bombay Stock Exchange.
The price hike will vary across models, and the exact quantum will be communicated to our dealers in due course, the world's largest two-wheeler manufacturer said on Wednesday.
The New Delhi-based motorcycle and scooter manufacturer said there has been a steady rise in commodity costs across the spectrum, including steel, aluminium, plastics, and precious metals.
The company further stated that it has accelerated its 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 its margins.
For the July-September quarter, Hero MotoCorp reported an 8.99 per cent year-on-year increase in standalone net profit at Rs 953.45 crore, from Rs 874.80 crore in the corresponding quarter last year. The revenue from operations stood at Rs 9,367.34 crore, growing 23.7 per cent from Rs 7,570.70 crore in the year-ago period.
The Indian two-wheeler major had sold 18.22 lakh units during the quarter ended September 30, 2020, as buyers returned to dealerships with gradual lifting of lockdown measures and rise in preference for personal vehicles amid the coronavirus pandemic. The company had sold 16.91 lakh units during September quarter last fiscal, and only 5.65 lakh units during June quarter this fiscal, when dealerships were closed due to COVID-19-mandated lockdown.
On Tuesday, Mahindra & Mahindra (M&M) announced that it will increase prices of its passenger and commercial vehicles from January 1, 2021, citing rise in commodity prices and various other input costs. The company will issue details of the price increase across different models in due course.
By Chitranjan Kumar