India's Hero MotoCorp to increase prices of specific two-wheeler models

Indian two-wheeler maker Hero MotoCorp on Friday said it would increase prices of specific models of motorcycles and scooters by around 1.5% from 3 July, as it combats price positioning, input costs and business imperatives.

The exact quantum of increase will vary by specific models and markets, the company said in an exchange filing.

Hero previously hiked prices on its select models of motorcycles and scooters by 2% in March, as it grappled with increased costs to meet new emission norms, which came into effect in the following month.

The company's total sales increased 6.7% year-on-year to 519,474 units in May 2023, it said in an exchange filing on 1 June.

Hero said the onset of monsoon and overall economic indicators bode well for a growth in demand. Industry volumes are also expected to pick up leading into the upcoming festive season, the company added.

The announcement comes two weeks after India's Ministry of Corporate Affairs ordered an investigation to assess Hero's relationship with a third-party vendor in a case related to alleged diversion of funds, according to a Reuters report.

However, the company said in a statement to Reuters that it had not received any communication from the government and could not comment.