2-Wheeler Giant Hero Moto plans to Increase the prices of its Motorcycles and Scooters from July 1, 2021. A price hike decision has been taken to partially offset the impact of a continuous increase in commodity prices. The price hike across the range of motorcycles and scooters will be up to Rs. 3,000 and the exact quantum of the increase will depend on the basis of the model and the specific market. In FY21, inflation impacted the costs by ~6%, against which the company has taken multiple price hikes amounting to 4%.

Yesterday, Maruti Suzuki hiked prices for the third time in the current calendar year. An increase in raw material cost made the company amend prices.

The company plans a price rise in quarter 2 of current FY with the extent of increase varying for different models yet to be decided. Previous Price hike taken by the company were in Jan-21 of around 0.8% and in Apr-21 of around 1.25% across models.

While price hike announcement could be taken as negative for consumer sentiment, but Auto dealers are hopeful of good demand recovery to be visible in month of June Auto sales numbers. Auto dealers say that the current pent-up demand and preference for passenger vehicles is boosting sales for vehicles. Although, they do not expect rural demand to rebound as strongly as after the first COVID wave but going forward they do see the demand picking up gradually as more unlock happens across the nation. Although, some auto dealers do highlight that the semiconductor shortage issue still persist globally but at the same time expect to overcome or rather see this resolving in a few months down the line