Hero MotoCorp shares jumped over 3 percent on Wednesday, as the country’s largest two-wheeler manufacturer said it will raise prices by up to Rs 3,000 from July 1 due to rising raw material costs.
Hero MotoCorp shares hit an intraday high of Rs 2,907 apiece on Nifty, leading the pack of gainers on the broader NSE index. The broader 50-share NSE Nifty was up 90 points, or 0.57 percent, to start at 15,862.
The auto major announced that it will increase the prices of its motorcycles and scooters by up to Rs 3,000 as a result of a sustained rise in prices of commodities like steel, copper, and others from July 1.
“The price hike has been necessitated to partially offset the impact of continuous increase in commodity prices. The company continues to drive cost savings programmes aggressively, to minimise the impact on the customer,” the company said in a stock exchange filing.
The price hike across the range of motorcycles and scooters will be up to Rs 3,000, and the exact quantum of the increase will depend based on the model and the specific market, Hero said.
Hero Moto is not alone in passing on the impact of additional cost to customers. Earlier, Maruti Suzuki, India's largest car manufacturer also announced that it will increase the prices of its cars from July by up to Rs 34,000 depending on the model and ranges.
Hero MotoCorp posted a 44 percent increase in consolidated net profit to Rs 885.28 crore for the fourth quarter ended March 31, on the back of strong sales.
At 10 am, the shares of Hero MotoCorp were trading 2.47 percent higher at Rs 2,978.75 apiece on the BSE. The Nifty Auto, meanwhile, gained almost a percent, trading at 10,648, rising by 107 points.
(Edited by : Ajay Vaishnav)
First Published: IST