It?s been just few months since the two-wheeler industry has started gaining momentum after a year-long decline in sales. However, the growth might once again come to a halt with major industry players increasing the prices across all segments.
This has come at the same time when banks have increased the interest rates, followed by ICICI Bank, the country?s largest two-wheeler financier, putting an end to two-wheeler finance from the dealers end.
The country’s largest bike manufacturer Hero Honda Motors, on Thursday announced an increase of up to Rs 850 on its entry-level 100c bikes. ?In view of consistent increase in input costs, we have raised the prices of our product range to partially offset this increase,? the company said in a statement.
Hero Honda?s move comes close on the heels of similar hikes by rivals Bajaj Auto Ltd, TVS Motors, Honda Motorcycle and Scooters India (HMSI) and India Yamaha Motors. While, Bajaj has increased prices in the range of Rs 500 and Rs 1,500 from the last week of July, Yamaha India has revised prices by Rs 1,000 across all models from the same date. Chennai-based TVS Motors had also undertaken a hike of Rs 1,000 to Rs 1,500 from August 3.
?The steep increase in prices of basic raw material would have meant a much higher hike than what has been announced by the major players,? says NK Rattan, vice-president, HMSI. The company has increased prices by Rs 500 to Rs 1,000 across different models.