Hero MotoCorp to raise prices of select motorcycles, scooters

Hero MotoCorp on Monday said it will make an upward revision in the ex-showroom prices of select motorcycles and scooters, with effect from July 1, 2024.

The price revision will be up to ₹1,500 and the exact quantum of increase will vary by specific model and market.

The revision has been necessitated to partially offset the impact of higher input costs, India’s largest two-wheeler manufacturer says.

This comes weeks after Hero MotoCorp said it will take big strides in electric vehicles through product launches in the mid and affordable segments in the coming year. The automaker expanded its emerging mobility brand, Vida, to 100 cities in the country.

Hero MotoCorp pumped an additional ₹124 crore into electric scooter maker Ather Energy. India's largest two-wheeler manufacturer previously owned 39.7% stake in the startup.

The investment is being made in the form of purchase of additional shares from an existing shareholder of Ather Energy for acquisition of up to 2.2% shares, Hero MotoCorp said in a regulatory filing.

Ather Energy, India’s fourth largest electric scooter maker, clocked 6,045 vehicle registrations in May, up 47% compared with 4,117 over the previous month. The EV startup launched its much awaited family scooter, the Rizta in April.

Hero MotoCorop, which retails e-scooters under its Vida brand, sold 2,456 electric two-wheelers in May as against 955 units in April.

E2W registrations hit a low of 65,111 in April from a high of 1,39,531 in March before the subsidy amount was slashed under the new ₹500-crore Electric Mobility Promotion Scheme (EMPS) scheme. The Faster Adoption and Manufacturing of Electric Vehicles (FAME-II) scheme expired in March this year, leading to a spike in sales in March as customers rushed to buy E2Ws at cheaper prices.

Under the new scheme, which will run for four months till July 31, 2024, the government has lowered the maximum subsidy cap on e2W to ₹10,000 per vehicle from ₹22,500 earlier.

Ola Electric, the country’s largest electric scooter maker, clocked 37,225 registrations in May, a 9% rise over the previous month when incentives were slashed to ₹10,000 per vehicle, as per Vahan data. Ola retailed 53,522 e-scooters in March 2024 ahead of the expiry of the FAME-II scheme.

TVS Motor Company, India’s second-largest electric two-wheeler maker, recorded 11,790 EV registrations in May, a 52% jump over the previous month when it retailed 7,742 EVs. Bajaj Auto retailed 9,214 electric scooters in May compared with 7,555 in April.