Hero MotoCorp, one of India’s largest motorcycle and scooter manufacturers, has announced that it will be increasing the ex-showroom prices of select models by around 2% effective April 1, 2023. The company has cited the cost increases associated with the transition to OBD 2 as the main reason for the price revision. OBD 2 is a mandatory requirement for all two-wheelers sold in India from April 1, 2023, as part of the government’s efforts to reduce air pollution and improve air quality in the country.
While the exact quantum of the price increase will vary by specific models and markets, Hero MotoCorp has assured its customers that it will continue to provide innovative financing solutions to mitigate the impact of the price revision. This move is likely to be well-received by customers who may be hesitant to make a purchase due to the price increase.
Despite the price revision, Hero MotoCorp is well-positioned to take advantage of the recent upswing in demand in rural markets. The company has noted that government schemes in the social sector and healthy agricultural outputs have contributed to the growth momentum in these markets. 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.
It is expected that other two-wheeler manufacturers will follow Hero MotoCorp’s price revision move to pass on the additional costs of complying with OBD-2 norms. This transition is a necessary move for the industry as a whole to comply with the Indian government’s mandate to reduce air pollution and improve air quality.