After declaring sales growth of 7% for the month of April, Hero Motocorp has announced price hike of Rs 500 to Rs 1,000 ($9 to $19) on most of its vehicles. Rising input costs have been stated by the company as the reason for the price hike. Meanwhile, the company also plans to increase capacity at three of its plants.
The hiked prices will come in to effect immediately, the company said. Hero Motocorp senior vice-president of marketing and sales Anil Dua said the company does not expect a major rise in material costs going forward.
Hero Motocorp profit for the fiscal fourth quarter to end-March rose 20 percent from a year previous amid doubts of its performance after ending partnership with Japan's Honda Motors. Significantly, Hero Motocorp April sales figure also surpassed its previous highest monthly sales of 5,49,625 units in September 2011.
Hero MotoCorp Senior Vice-President (Marketing and Sales) Anil Dua said: "It is indeed heartening to begin the new financial year with our best-ever monthly sales. We have made a good beginning with this strong performance and are pleased with the continuing trend of over half a million unit sales every month for the past nine months."