Hero Honda aims to launch bikes in Rs 12,500-15,000 range

World’s largest two wheeler manufacturer Hero Honda is facing intense competition in the domestic market from rivals including Bajaj Auto.

The company has now announced their plans to build a motorcycle that will sell for Rs 12,500-15,000. The plan is to create a brand new segment in the Indian motorcycle market to generate more sales.

At the moment, the cheapest motorcycle product in India sells for around Rs. 30,000. Pawan Kant Munjal, the managing director of Hero Honda was quoted as saying to media personals: “We are evaluating the entire scenario and a possible $300-350 vehicle is on our radar. It is in the broad spectrum of our work. Although there is nothing on the drawing board yet, we are seriously looking at it.”

Hero Honda seems to be inspired by the Indian government’s Automotive Mission Plan which would provide the automakers some concessions.

The plan states: “Domestically, the focus should be on developing and selling appropriate products for the large population of the country. The products could include cost-effective small carriers, strong rugged vehicles for the rural market and $300-350 motorcycles.”

Hero Honda also launched their latest bike model named Splendor NXG.