Hero Honda hikes prices by Rs 500-2000 on high volume models

New Delhi, July 31 (UNI) Hero Honda, two-wheeler major, today announced a marginal price hike of Rs 500 to Rs 2000 on high volume motocycles, to beat the rising costs of raw materials like steel, aluminum and rubber.

''Hero Honda has resisted passing on the increased raw material costs to customers for some time. However, the substantial increase in the prices of steel, aluminum and rubber was impacting our operating margins. To offset the increase in raw material costs, we have announced a marginal price increase. This will positively impact our operating margins for the remaining quarters,'' Hero Honda MD Pawan Munjal said.

The new price revisions will be effective from August 1, 2006 and will positively impact the company's operating margins.

The price of premium model Karizma has been increased by Rs 2000, while the Hero Honda Super Splendor will cost Rs 500 more.

The company has increased the price of Hero Honda CD Dawn by Rs 1000, while the prices of Hero Honda Splendor +, Hero Honda Passion Plus and Hero Honda Achiever have been increased by Rs 750.

However, there is no change in the prices of Hero Honda CD Deluxe, Glamour and Pleasure.

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