Just before the festive season the prominent two wheeler companies of the country have raised prices. Hero Motocorp, Bajaj Auto and Yamaha India have raised prices of their bikes by Rs.160 to 5000. These companies have put burden of increasing input cost and decreasing rate of Rupee over consumers.
In September, two wheeler companies have got good sales. During this period Hero Motocorp, Honda Motorcycle and Scooter India achieved growth in double digit, while Bajaj Auto's sales were ok ok. Obviously, two wheelers are in demand and customers will be able to afford this increase. According to HDFC securities, in September 2013 two wheelers segments are getting growth of 15 percent. This growth was almost flat during April to August 2013.
From January till now Diesel's price has increased from Rs. 6 to 7 and it not only increased the freight cost but also affected manufacturing. Most of the vehicle manufacturing companies have ignored increment in prices in the first half of 2013, but due to a steady rise in the cost, the companies are left with no choice.
Atul Gupta, Executive Vice-President of Suzuki Motorcycle India says that the increase in prices of two wheeler segment has no relation with demand. He said, two wheelers are utility products. If people need it, regardless of price hikes people will buy it. In July we had increased prices by Rs. 500 to 1000 and so far it has seen no impact on demand. According to Mr. Gupta, if no major surprises happen, then the company will not increase prices until December 2013.
