Input cost compelled TVS and Bajaj to increase prices

The Two wheeler Automobile companies had to increase the price of their products due to hike in the cost of basic inputs like steel and rubber. Hero Honda is still waiting and observing the price hikes done two weeks ago by TVS and Bajaj motors as they have raised the cost of their products. Few more companies will raise their cost till April-June.

In the first week of April, there was a price hike of 1.5- 2.0 % by the Chennai based TVS Motor Company. Including three wheelers, the rise in price covered their whole range. As per H.S Goindi, the President of TVS motors there was a rise in prices of the key commodities like steel and rubber. Thus one could see a hike in the prices of TVS Bikes like TVS Apache, Bajaj Bikes which includes mainly Bajaj Pulsar and Bajaj Discover.

Coming to the well known company, Hero Honda as for now no plans are made to introduce a rise in the prices but the company is deeply analyzing the situation and will switch to most appropriate decision as per the situation. The company has stated that they are open to all decisions.

Hero Honda introduced a price hike in its product during the month of March 2011 and that is the reason no immediate decision on this rise is taken by the company. Talking about the company’s performance in the month of April 2011, a jump of 39% was observed equaling to 5,17,099 units.

A continuous hike in prices of inputs is bothering the auto manufacturers at a large scale. The exponential growth marked by the Indian automobile industry is now facing the turmoil of hiked up prices and increased input cost. Even in such situations the companies are managing good returns and profits. For now Hero Honda has not declared any further increase in the prices but due to the stressed profit margin, soon they may come up with further increase in the prices.