Hero MotoCorp to Hike Prices of Select Models by 2% From April 1

Hero MotoCorp recently confirmed that it will raise the prices of its model range by around 2 per cent beginning next month to offset the impact of higher production costs due to stricter emission norms.

By Reetika Bhatt | on March 23, 2023 Follow us on Autox Google News

One of the biggest two-wheeler producers in India, Hero Motocorp, has announced that it will raise the price of a few models. The price increase will be about 2 per cent, but the precise percentage increase will depend on the scooter or motorcycle model. It should be noted that the new vehicle prices will take effect on April 1st, 2023. In a press release, the two-wheeler manufacturer stated, "The price revision has been necessitated mainly due to cost increases on account of the OBD 2 transition. Hero MotoCorp will continue to provide innovative financing solutions in order to cushion the impact on the customers." Hero Motocorp further remarked, "The rural markets have been witnessing an upswing in demand, thanks to the government schemes in the social sector and healthy agricultural outputs. This augurs well for the industry as the growth momentum is expected to lead into the upcoming festive season towards the latter half of the fiscal." 

Also Read: Hero Xpulse 200 4V Review: First Ride

Hero MotoCorp Price Hike April 2023: OBD 2-Compliant Engines

The OBD-2 (onboard diagnostic device) is intended to monitor a vehicle's emission levels continuously and alert the owner if they rise or fall outside of acceptable ranges. The device will measure emission levels in the real world rather than in the ideal conditions of a laboratory. The mandate serves as a step towards achieving net-zero emissions in the foreseeable future.

According to Indian government regulation, all two-wheelers sold in India starting on April 1, 2023, must be equipped with the OBD 2 system. This is a part of the government's efforts to reduce air pollution and improve the quality of the country's air.

The OEMs have modified their vehicles in a similar way to reduce the emissions produced by four-wheelers. New RDE-compliant engines have been updated by the brands in India for their vehicles. The price of the vehicles has also been impacted by these modifications to the various models.

Hero MotoCorp Price Hike April 2023: Will the Price Revision Impact Brand's Sales?

This price adjustment is a crucial step in maintaining the two-wheeler industry's profitability and expansion. Hero MotoCorp's emphasis on financing solutions and growth momentum in rural markets are encouraging signs, even though the impact on customers may be minimal, and is anticipated to maintain the expansion of the two-wheeler industry while minimizing any potential negative effects.

Hero MotoCorp: February Sales Figures

Last month, the automaker sold 3,94,460 units, compared to 3,58,254 units in February 2022, representing a 10 per cent increase year-on-year (YoY). Motorcycle sales increased 9.8 per cent in February to 3,71,854 units, up from 3,38,454 units in the same month last year. Furthermore, the automaker reported selling 22,606 scooters in February 2023, up from 19,800 units at the same time last year, representing a 14 per cent increase. Hero MotoCorp has experienced a decline in exports. It shipped 12,143 two-wheelers in the last month, compared to 26,792 units the previous year, a 54 per cent decrease. The company expects the positive trend to continue in the coming months, based on the consistently rising buyer interest in the vehicles.

Also Read: TVS Apache RTR 200 4V BS6 vs Hero Xpulse 200: Comparison

Notably, Hero MotoCorp is not the only firm whose costs have increased as a result of the switch to OBD 2. Due to the same factor, it is anticipated that other Indian auto manufacturers will increase their prices as well. Price increases for vehicles are continuously impacted by rising input costs and commodity prices.

Tags: Hero MotoCorp Hero MotoCorp Price Hike OBD 2

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