Mumbai: Hero MotoCorp, the biggest two-wheeler manufacturer in India, has said that it will raise the pricing of some bikes and scooters from July 1, 2024 due to increased input costs.
Hero MotoCorp has revised prices three times in the last year. Similar price increases had previously been made by the corporation in early July 2023 and early October 2023, with the company always blaming the increases on rising input costs.
Since 2023, the automobile sector has been struggling with sharp rises in the cost of raw materials, especially metals. Geopolitical concerns, higher demand, and supply chain disruptions are some of the main causes driving up metal prices. Metals like copper, steel, and aluminum saw a sharp increase in demand.
2023 saw a significant spike in steel prices due to supply shortages and rising demand as economies recovered from the global health crisis. Geopolitical tensions and supply chain disruptions caused nickel, a critical component in the creation of batteries for electric vehicles, to see price volatility as well. In early 2024, nickel reached multi-year highs.
Many producers in the automobile industry were forced to pass on costs to customers as a result of the increases in metal prices. Hero MotoCorp has been witnessing a rise in demand, which coincides with the most recent price adjustment.
he company has experienced a reversal in customer interest since late 2023, following a protracted period of sluggish sales from the second half of 2022 through much of 2023.
Industry observers credit the company's smart product launches, improved economic conditions, and pent-up demand for this turnaround, given the difficulties Hero MotoCorp encountered during the prolonged sales decline, brought on by supply chain difficulties that followed the COVID-19 pandemic.
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