New Delhi/Gurgaon: Leading two-wheeler manufacturers, Honda Motorcycle & Scooter India, Bajaj Auto and TVS Motor Company have hiked prices of their vehicles by up to Rs 800, mainly to offset the impact of rising freight charges.
Honda Motorcycle & Scooter India (HMSI) on Wednesday said it has raised prices of its entire range of two-wheelers by up to Rs 800 with effect from April 1.
"We have hiked prices of all our models by Rs 200-800 from April 1. It is done mainly because of the impact of diesel price increase in recent times," HMSI Vice-President (Sales and Marketing) Y S Guleria told here.
Due to a hike in diesel prices, freight charges went up and that had a cascading effect on all our expenditures, he added.
"Besides, recently insurance charges also increased. So, finally we decided to pass on some burden to consumers," Guleria said.

Likewise, the country's third largest two-wheeler maker Bajaj Auto said it has raised prices of its entire range of motorcycles by up to Rs 500 from last week.
"We have increased prices between Rs 300 and  Rs 500, effective April 12 to take care of increased logistics and other costs," Bajaj Auto President (Motorcycle Business) K Srinivas said.
HMSI's two 'Dream' range of motorcycles -- Neo and Yuga -- will compete directly with market leader Hero MotoCorp's best selling Splendor series of bikes, which are priced between Rs 42,250 and Rs 50,650 (ex-showroom, Delhi).
Talking about sales target of 'Dream Neo', Muramatsu said HMSI is aiming to sell 3 lakh units of the model in 2013-14.
"We are targeting to sell 5 lakh units of Dream Yuga. So, our Dream series will contribute a total of 8 lakh units in this fiscal," he added.
When asked if the company will continue to roll out more models in low-cost segment, Muramatsu said: "We will have a full product line up, but our priority will be the volume market. We will focus more on low-end two-wheelers."
The company will try to minimise the cost by having more localisation in all its products, he added.
At present, the average level of localisation of the HMSI models are 97 percent, while the new bike Dream Neo has about 99 percent of local parts, he said.
Talking about exports, Muramatsu said: "We are looking to increase our overseas sales to 1.7 lakh units this fiscal from 1.5 lakh units in 2011-12."
Currently, HMSI exports its models to Sri Lanka, Nepal, Latin America, Africa and Europe, he added. The company will also sell vehicle components to Bangladesh to roll out two-wheelers from an upcoming completely knocked down plant there, he said.
When contacted, a spokesperson of the Chennai-based TVS Motor Company said the firm has already raised prices of all its models between 0.25 percent and 0.50 percent from
April 4.

Diesel prices continue to be regulated, but the government had in January this year authorised oil firms to hike rates by 40-50 paise per litre every month till such time that the entire revenue loss on the fuel is completely wiped off. Oil firms raised diesel prices by 50-51 paise per litre on three occasions since then.
Post-hike, HMSI's three scooters Dio, Activa and Aviator are priced between Rs 44,718 and Rs 53,547. Its current range of eight locally manufactured motorcycles are priced between Rs 45,101 and Rs 1.77 lakh.
According to Bajaj Auto's official website, its entry-level bike Platina is currently available at Rs 39,293. While the Discover series is priced at Rs 44,800-52,940, the Pulsar range of motorcycles is offered between Rs 58,963 and Rs 70,321.
All the above prices are according to the company's official websites and are for ex-showroom, Delhi.


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