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As we already reported earlier, Hero Honda is currently aiming to launch a new ultra low cost bike to be priced around Rs 25000 and this would make the bike segment more active in the market.

Hero Honda ultra low cost bike might get a small cc engines that one would be a 75cc and the later with 110cc. The company is taking several necessary actions to directly compete with the “Made In China” cheaper bikes from its rival Bajaj and this is one of them.

The company might source the components of these new bikes that will be shared with highly depreciated products like Splendor and the bikes will be rolled out in a 12-18 month timeframe.

Hero Honda is likely to shift the manufacturing of its premium bikes like the Karizma and Hunk to its Haridwar plant to take advantage of tax breaks there, which would also free up capacity for the new small bikes at Gurgaon and Dharuhera.

[Source: Vicky]

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