Employees work on the assembly line at the Honda Motorcycle & Scooter India Pvt. plant in Manesar. (Photographer: Pankaj Nangia/Bloomberg)

Get Ready To Shell Out More For A New Two-Wheeler

Hero MotoCorp Ltd. increased the prices of its motorcycles by up to Rs 900 as India’s largest two-wheeler maker seeks to offset rise in prices of commodities and a weaker rupee.

The price hike is applicable across variants, it said in an exchange filing. But that’s not the only reason why motorcycles and scooters are becoming costlier. Here’s why buying a two-wheeler is becoming expensive:

Long-Term Insurance Compulsory

From Sept. 1, two-wheeler owners will have to pay more for their insurance plans as only multi-year third-party covers are permitted. Insurers will sell five-year plans for scooters and motorcycles, which will be applicable for new purchases and renewals.

Mandatory Safety Systems

The Ministry of Road Transport & Highways recently notified that two-wheelers manufactured from Apr. 1 must have anti-lock braking systems or combined braking systems, depending on their engine capacity.

Two-wheelers with an engine capacity of less than 125cc must come installed with the combined combined braking system, while those above that must have the anti-lock braking system.

BS-VI Emissions Standards

Earlier this year, the government decided to move from the BS-IV emissions standard to BS-VI by Apr. 1, 2020. This will mean a transition in its fuel delivery systems from the current carburetors to fuel injection systems.

While the upgrade costs at present Rs 10,000, greater economies of scale, local manufacturing and customisation can reduce it to around Rs 5,000 to Rs 7,000, according to Jefferies.

Also read: Missteps That Forced Bajaj Auto To Junk Its Profit-First Strategy