Hero MotoCorp share price vrooms as auto major announces this decision - All you need to know about the stock movement

The shares of Hero MotoCorp jumped by three per cent to Rs 2994.55 per share on the BSE intraday trade on Wednesday, as the two-wheeler major announced a price hike on Tuesday. 

Amid rising input cost, Hero MotoCorp will make an upward revision in the ex-showroom prices of its motorcycles and scooters, with effect from July 1, 2021, the company said in its filing to exchanges. 

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It added, 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 on the basis of the model and the specific market. 

“The price hike necessitated to partially offset the impact of continuous increase in commodity prices. The company continues to drive cost savings program aggressively, in order to minimize the impact on the customer,” Hero Moto had said in a statement on Tuesday. 

At around 11:00 am, the stock is trading near the day’s high level with a rise of 2.7 per cent to Rs 2984.9 per share on the BSE as against Rs 2906.55 previous close. It has trading volatile for the last five sessions, breached Rs 2900 per share levels since yesterday. It was also an index gainer at open today. 

Earlier, the company had said it would be taking a price hike of up to around 2 per cent to mitigate sharp commodity cost inflation. 

Hero Moto is the second such company to increase the price of its vehicle, as Maruti Suzuki on Monday, had also declared to increase the price of its vehicles amid rising input costs.  

The stock yesterday ended five per cent higher and has been continuing its surge today with a rise of around two per cent to Rs 7407 per share. The shares have jumped around seven and a half per cent since Monday.