Hero Honda might hit the headlines soon if it announces the launch of motorbikes at the lowest possible price, say Rs20000. The motif behind this is to offer a bike with all quality at an easily affordable price. Hero Honda and Hero Motors are in the process for this which may find its way in a year from now. The price of the bike may depend upon the reciprocity to the huge volume of investment, at least 5lakh units a year.
Though Hero Honda rules the two wheeler segment, it needs to penetrate the rural segment with the low-entry model. The rural segment, which currently contributes 40% of net sales, is expected to increase to 45% this year.