Honda Motorcycle & Scooter India (HMSI) on Wednesday said it will launch a 100-cc motorcycle priced between Rs 40,000 and Rs 45,000 next financial year.
The company also said it will review the prices of its existing products next month in order to minimise the impact of escalating raw material costs.
"We will showcase a 100-cc bike at the Auto Expo in January and plan to launch it next fiscal. It will be priced in the range of Rs 40,000 to Rs 45,000," HMSI VP-Sales and Marketing N K Rattan said on the sidelines of the Society of Indian Automobile Manufacturers' (SIAM) annual summit in New Delhi.
The bike is currently under development at the company's R&D centre in Japan, with inputs from Indian engineers.
"It will be primarily sold in the domestic market," he added, but declined to share the sales target for the to-be-launched mass segment bike.
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Earlier, HMSI was unable to enter the mass segment in the country because of its parent Honda Motor Co's joint venture with India's Hero Group.
Last year, the joint venture split and Honda decided to go solo. Currently, HMSI sells a 110-cc motorcycle, 'Twister'.
The company will also launch a new scooter by the end of this fiscal, Rattan said, but declined to share details.
When asked about the possibility of a price hike, he said: "We will review the prices in October and decide about a hike then... Raw material prices were rising, but the impact is slightly down now."
HMSI has already effected two price hikes this year, in April and July, translating into a total increase of 2 per cent.
Besides, strengthening its product portfolio, the company is also expanding its dealership network.
At present, it has 1,220 outlets, including service centres, and plans to add another 300 outlets within the current financial year.
HMSI sold 16.58 lakh units in 2010-11 and is targeting sales of 21 lakh units this fiscal.