Hero Honda, the leading two wheeler manufacturer has decided to hike the prices of some it its bikes. The decision has been influenced mainly because of soaring prices of raw material, and higher production cost of finished product. According to the company sources prices of its entry-level 100 cc motorbikes have been raised by up to 850 rupees ($20).

 

Hero Honda Motors Ltd will not be the only company to hike prices of bikes, there has been 3 percent hike in raw material and higher cost of production. And, the fact will lead other companies to do same to meet market challenges and sustain profit. There has been sharp rise in the prices of steel. Soaring interest rates and gasoline prices are other leading concerns.