Hero Honda Motors may reduce two-wheeler pricesApril 8th, 2008 - 7:07 pm ICT by admin
Haridwar (Uttarakhand), April 8 (IANS) Prices of two-wheelers are unlikely to be affected by the hike in steel prices and Hero Honda Motors may consider reducing the price tag, the leading manufacturer in the segment indicated Tuesday. “We are watching the situation. It could be either way round,” Hero Honda Motors managing director Pawan Munjal told reporters after inaugurating the firm’s third manufacturing plant in this temple town of Uttarakhand.
Hero Honda Motors have two-wheeler manufacturing plants in Gurgaon and Dharuhera in Haryana.
The two-wheeler industry is facing a slowdown besides rising steel prices. However, Hero Honda Motors intends to pass on to its consumers the benefits from the Uttarakhand government’s 10-year rebate on excise duties and taxes.
Hero Honda Motors’ rival Bajaj Auto already has a plant in the state.
“Once we offer lower prices for two-wheelers, others in the two-wheeler industry would be compelled to cut their prices,” said a senior official of Hero Honda Motors.
According to Munjal, the two-wheeler segment would show an upward trend in the near future.
“The two-wheeler market in China is 20 million units per year, while in India it is only 8.5 million. We are very hopeful that the market would catch up soon,” he replied when asked if its new unit would end up producing more than the demand.
The new plant on 275 acres of land is eco-friendly, the company said. “We will have the largest green roof plant in the world here,” claimed Munjal.
Hero Honda Group chairman Brijmohan Lall said: “We are also looking at developing infrastructure in Haridwar.”
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