Ather Energy, Hero Moto Corp, Bajaj Auto Under Pressure To Hike Prices of Electric 2-Wheelers

India’s electric two-wheeler makers, including Ather Energy, Hero MotoCorp and Bajaj Auto, are facing mounting pressure from rising raw material costs and global supply-chain disruptions. As per news reports from Economic Times, industry executives have warned that increasing geopolitical tensions and surging demand for AI infrastructure are driving up prices of key EV components, forcing companies to consider further price hikes.

How Are EV Players Like Ather Energy and Bajaj Auto Faring in Current Climate? 

Prices of essential battery materials such as lithium, nickel and cobalt have surged sharply in recent months. As per news reports, lithium prices jumped from nearly $8 per kilogram to around $24 within a short period, while lithium-ion cell costs have increased by 30-50% depending on sourcing timelines.

Automakers are also grappling with inflation in aluminium, copper, steel, plastics and rubber. Bajaj Auto has said that commodity inflation could raise costs by nearly 3.5-4% during the current quarter, while Hero MotoCorp said bill-of-material inflation remains in the high single digits.

Ather Energy has already implemented blended price hikes of nearly ₹4,000 this year and indicated that additional increases may follow if cost pressures persist.

AI Infrastructure Demand Adds Fresh Supply Pressure

Electric vehicle makers said the rapid expansion of AI infrastructure is creating fresh competition for critical electronic components, particularly memory chips used in EV systems.

.ncreased two-to-four times in some cases as manufacturers redirect production toward AI applications. Companies such as Ultraviolette Automotive and Euler Motors also flagged supply constraints linked to the growing AI hardware market.

At the same time, the West Asia crisis has worsened logistics disruptions and commodity inflation, adding further uncertainty for manufacturers.

Read more: Adani Power Share Price in Focus After Getting CCI’s Nod for Acquiring GVK Energy.

Conclusion

India’s electric two-wheeler industry is entering a challenging phase as rising commodity prices, AI-driven chip demand and geopolitical disruptions increase cost pressures. While companies have absorbed part of the inflation so far, consumers may soon face higher vehicle prices as manufacturers attempt to protect margins and sustain growth in the rapidly evolving EV market.

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