Hero MotoCorp to raise prices of motorcycles, scooters from July 1; here’s why

India's largest two-wheeler manufacturer, Hero MotoCorp Ltd, on Monday, June 24, announced that it would raise the ex-showroom prices of selected two-wheelers and scooters from July 1, 2024, to offset the impact of higher input costs.

“The price revision will be up to ₹1,500,” said the company in a BSE filing. The exact amount of the price increase will vary from model to model and also by the specific market, reported the automaker in the filing.

Hero MotoCorp shares closed at ₹5,530, a 1.43 per cent increase from the previous close of Rs.5,451.90. The shares reached a high of Rs.5,533.70 during the trading session on Monday.

Monthly vehicle sales data from the Federation of Automobile Dealers Association (FADA) showed that year-on-year retail sales for May had gone up by 2.48 per cent to nearly 1.5 million units, up from 1.497 million units in the previous year.

According to FADA Research data, as of May 2024, Hero MotoCorp controls 29.05 per cent of the two-wheeler market in India, while Honda Motorcycle and Scooter India Private Ltd has almost 25.45 per cent market share. Apart from the two market leaders, TVS Motor Company has 17.15 per cent and Bajaj Auto Group has 11.41 per cent. 

The FADA data highlighted market liquidity issues, high inventory levels straining dealers' profitability, and weather impact in India as a few of the automotive industry's major concerns. 

India's two-wheeler market size reached 21.4 million units in 2023, according to the International Market Analysis Research and Consulting Group (IMARC) data. IMARC Group expects the market to reach 86.4 million units by 2032.