Hero Honda hikes prices by Rs 2000

Under pressure from increasing input costs and shrinking margins, leading two wheeler manufacturer Hero Honda on Monday announced an increase in prices of its motorcycles by Rs 500 to Rs 2000 across various models.

"The substantial increase in the prices of steel, aluminium and rubber was impacting our operating margins. To offset the increase in raw material costs we have announced a marginal price increase. This will positively impact our operating margins for the remaining quarters," Pawan Munjal, MD, Hero Honda Motors said in a statement.

This decision has primarily been taken to compensate for the increased inflationary costs in raw materials - steel, aluminum, rubber, etc, it said.

The new price revisions, ranging between Rs 500 and Rs 2000 across various models, will be effective from Tuesday, it added.

Post the price hike, 'CD Dawn' will be costlier by Rs 1,000, while that of 'Splendor plus', 'Passion Plus' and 'Achiever' have been increased by Rs 750.

Hero Honda's best selling model 'Splendor' will see a hike of Rs 500, while the price of premium model 'Karizma' has been increased by Rs 2000.

There is no change in prices of 'CD Deluxe', 'Glamour' and 'Pleasure', it said.