The average price of the two wheelers has increased significantly over the selected 12 years of study. This can be attributed to increasing in cost components and changing consumer demographics especially lifestyle and income, which have given a great push to motorcycle market, which commands higher price. This shift in demand and its considerable increase has resulted in increase in production in recent years, which has also resulted in a significant upward movement of the raw material cost. The present research study focused on the two wheeler segment and the selected two companies Hero Honda Motors Ltd. and Bajaj Auto Ltd. Researcher selected seven cost components-Average raw material (RMC), Average power fuel (P&F), Average Employee cost (EC), Average Other manufacturing expenses (OME), Average selling and distribution exp (S&D), Average miscellaneous exp. (ME) & Average interest paid (IP) and checked their impact on Average Price (dependent variable) of the product in total two wheeler sector.