Passing on the excise duty cut benefit in Budget 2008 to customers, Hero Honda Motors Ltd (HHML), the world’s largest manufacturer of motorcycles, today reduced prices on all its models, ranging from Rs1000/- to Rs 2400/-.

The company, which sold 265,431 units of two-wheelers in the month of February, reduced the price of Splendor+ by about Rs 1300/- (ex-showroom Delhi) and on Karizma by about Rs 2400/- (ex-showroom Delhi). Similarly, the price of its best-selling 150cc bike Hunk has been reduced by about Rs 1800/- (ex-showroom Delhi).

Mr. Pawan Munjal, MD & CEO, HHML, said “Hero Honda has taken the voice of the customer to the government, and consequently the excise duty on two-wheelers has been reduced to 12 per cent from 16 per cent. This is a welcome move, and we are happy to pass on the entire benefit to customers. The reduction in excise duty cut will enable us to draw more customers to our fold, but the basic factors causing the industry slowdown still remain unattended. Credit financing has been withdrawn in some key markets, while interest rates on consumer loans also remain very high. This credit squeeze continues to be the most critical factor adversely impacting industry growth, and we still don’t see any indication from the banks and the government to address this concern. For the industry to make a turnaround and get back on the path of growth, the government has to address these key issues.”

Sourced From: Corporate Voice|Weber Shandwick

Tags: calls, daytrading, free calls, intraday, tips

Similar Posts:

• Hero Honda’s reports sales of 298050 units in Jan 2008
• Hero Honda reports 27% growth in August sales
• Buy Hero Honda, target of Rs 1275: Motilal Oswal
• Hero Honda Motors an outperformer: Karvy
• Hero Honda an outperformer: Karvy Stock Broking