In order to offset the impact of rise in production cost and conform to stricter emission norms, Hero MotoCorp – India’s leading two-wheeler maker – on Wednesday said it will increase prices of its model range by around 2 per cent from next month.

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According to the official statement of the company, Hero MotoCorp will make an upward revision in the ex-showroom prices of its select motorcycles and scooters, effective from April 1, 2023.

The price revision will be around 2 per cent and the exact quantum of increase will vary by specific models and markets, the two-wheeler company said in its regulatory filing.

The price revision has been necessitated mainly due to cost increases on account of OBD 2 (on-board diagnostics) transition, it also said.

Hero MotoCorp will continue to provide innovative financing solutions in order to cushion the impact on the customers, it added.

Hero MotoCorp is a manufacturer of two-wheelers such as Maestro, Xtreme, Xplus, and Splendor among others premium and budget bikes and scooters.

Shares of Hero MotorCorp on Wednesday ended flat with a positive bias at Rs 2,354.10 per share, up Rs 3.95 or 0.17 per cent from Tuesday’s closing of Rs 2350.15 apiece on the BSE.

Earlier on Tuesday, Tata Group company Tata Motors – an automobile major – had also announced raising the prices of commercial vehicles by up to 5 per cent from April 1. This is in the wake of the implementation of the more stringent BS-VI phase II emission norms from next month.

The Indian automobile industry is currently working to make their products meet the second phase of BSVI.

From April 1, vehicles will need to have an on-board self-diagnostic device to monitor the real-time driving emission levels.

The device will constantly monitor key parts for meeting emission standards such as the catalytic converter and oxygen sensors, to keep a close watch on emissions.