Hero MotoCorp climbs 4% as two-wheeler maker announces price hikes

NEW DELHI: Shares of Hero MotoCorp climbed 4 per cent in Friday's trade after the two-wheeler maker said it will hike prices of motorcycles and scooters by up to Rs 3,000 from July 1 to partially offset the steadily growing overall cost inflation, including commodity prices.

The scrip rose 3.62 per cent to hit a high of Rs 2767.50 on BSE, with the auto maker's market value surpassing the Rs 55,000 crore mark. The scrip has an average price target of Rs 2,933, suggesting a potential 6.5 per cent upside from the prevailing levels.

In a filing to BSE on Thursday, the two-wheeler said the price revision would be up to Rs 3,000 per vehicle.

"The exact quantum of increase will be subject to the specific model and market," it said, adding that the price revision has been necessitated to partially offset the steadily growing overall cost inflation, including commodity prices.
Hero MotoCorp is the world's largest manufacturer of motorcycles and scooters. It sold 486,704 units in May 2022.

Sequentially, this translates into a growth of 16 per cent over the month of April 2022, when the Company had sold 418,622 units. Hero MotoCorp had sold 183,044 units in the corresponding month of 2021 when the sales were impacted due to the resurgence in Covid-19 cases and subsequent lockdowns.

Hero MotoCorp sells a range of models, ranging from entry-level HF100 with prices starting at Rs 51,450, while Xpulse 200 4V tagged at Rs 1.32 lakh (ex-showroom Delhi).

(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of Economic Times)