India’s second largest two wheelers manufacturer Bajaj Auto is likely increase the prices of its motorcycle by 1-2 percent this month due to a rise in input costs such as steel and rubber.
According to Milind Bede, General Manager (Marketing) “Input costs have risen considerably. As a result, we will have to increase the prices of our vehicles. We are planning to increase them by 1-2 per cent from this month,”
He also added that the company is still working out the details of the hike. Recently Bajaj auto hiked its motorcycle prices by 1-2 percent in July month this year.
It is expected that steel prices are likely to increase by Rs 500-1,000 in the coming months following an increase in the global demand for the material.
Rising inflation is hurting both the company and consumers the price of inputs material such steel, copper, rubber are increasing very fast. Apart from this rising fuel prices and interest rate hike also hurting consumers. Given the fact that there is no slowdown in demand of two wheelers the prices are bound to increase.
Beside this Bajaj Auto is expanding its capacity to 5 million units a year for the financial year 2011-12