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Price cut will not increase demand: Hero Honda

Hero Honda, the country's largest two-wheeler maker ruled out cutting prices, saying it was unlikely that such a step would spur demand. Reacting to the Finance Minister, P. Chidambaram's, call to various industries to lower prices to stimulate consumption, Hero Honda Motors Chairman, Brij Mohan Lall Munjal, said that price cuts are unlikely to increase demand.

Brij Mohan Lall Munjal, the Chairman, Hero Honda motors said that while the price of all other commodities like fuel and electricity was increasing how a reduction in automobile price could be expected.

The Volkswagen India Managing Director, K.K. Swami said that price reduction can happen only when there is a reduction in the input cost and not otherwise.


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