Bajaj jacks up prices of Platina, Discover; 3-wheelers  ( July '1,2006, Daily News & Analysis)

Country's second-biggest bike maker Bajaj Auto on Friday announced a price hike of popular models 'Platina' and 'Discover' to cover up rising costs of input materials.

"The price of the Platina will go up Rs 1,000 from Saturday while the Discover will be dearer by Rs 500," a senior company official said.

Bajaj will also hike the price of its three-wheelers in a range of Rs 2,500-6,000, the official said.

The company said margins had been under pressure due to higher prices of inputs like steel, aluminium and rubber.

"Four to five input elements have seen prices go up substantially, which has put pressure on our margins," the official said.

He said the price hike would be able to offset the pressure on margins as the two bikes sold as many as 1,00,000 units between themselves.

Asked if the company was also contemplating hiking the price of the 'Pulsar', the official said, "Not right now. But eventually, it has to go up."

Market leader Hero Honda has also admitted to severe pressure on margins due to hike in inputs, though deciding against raising prices due to the competitive nature of the market.