Hero MotoCorp hikes vehicle prices.

India’s largest two wheeler compan Hero MotoCorp  has raised prices of most of its products by INR 500 TO INR 1000 with immediate effect, the company said in a statement, to offset rising input costs.

Hero MotoCorp posted net profit of Rs. 6.03 billion which is lower than estimated profit of Rs. 6.15 billion in the quarter ended March, missing analysts estimates, as higher raw material costs damped gains from record sales of bikes and scooters.So for now the primary target of the company is bring down the input cost .

The main reason behind the rising input costs is inflation , depreciation in Rs. currency and the rising wages of the workers .The company is now going to increase the number of touch points and accelerate the number of two wheelers sold so that they can strengthen their brand.

The company plans to launch a number of motorcycles in 2012-13 so that they can continue their supremacy in the market .Also the company aims to increase its overseas footprint and plans to target Latin America and African markets .The company desires to sell 7 million units for the financial year2012-13.

Hero Motocorp has inked deal with Erik Buell Racing and Austria-based AVL to scale up and supplement its in-house research and development and engine technologies.

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