Bajaj Auto has implemented price increases across motorcycles, electric two-wheelers and three-wheelers, ranging from ₹700 to ₹6,000, as it looks to offset rising input costs. Rakesh Sharma, the company’s executive director, said: “Yes, prices are being increased across motorcycles and three-wheelers… This will also include electric scooters.”
He, however, declined to specify whether the hikes would fully offset the increase in production costs.
Bajaj Auto’s move follows actions by pure-play electric vehicle makers such as Ather Energy, which has raised prices by around 2-3 per cent in select markets, according to industry sources, though it has stopped short of a blanket increase.
The West Asia conflict has driven up prices of key inputs, including aluminium, which accounts for a significant portion of two-wheeler production costs, as well as copper, lithium, nickel, and plastics.
Supply concerns have intensified. Aluminium prices rose to a four-year high on March 30, climbing 6 per cent after Iran damaged production facilities in Gulf nations, where smelters came under attack.
A senior executive at a leading two-wheeler company said an estimated 8-10 per cent increase in costs due to the conflict would require end-customer prices to rise by 6–7 per cent to fully offset the impact.
“The increase cannot be absorbed entirely by the company,” the executive said. “There will be a price increase for the customer, along with a temporary hit on margins. These are not ordinary commodity fluctuations that can be absorbed — they are substantial.”
Executives also warned of potential demand impact, as higher prices could prompt consumers to delay purchases. “We will wait and watch,” said another senior auto executive. “However, there is bound to be a postponement of buying among price-conscious consumers — they would rather wait. Much will depend on how quickly the conflict ends.”
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