Honda surpassed Bajaj in the two-wheeler market.Reuters

Honda Motorcycle and Scooter India (HMSI) is gearing to take on the motorcycle segment with the introduction of a new low-cost bike.

According to a Business Standard report, Honda's low-cost bike is likely to be priced between ₹30,000 and ₹40,000.

"We are examining the possibility of introducing a low-cost motorcycle for India," said Atsushi Amataka, president, Honda Research & Development India as saying.

Honda aims to tap 70 percent market share of ex-partner Hero MotoCorp with the launch of new bike which it hopes would be a strong contender to its very own 110-cc Dream Yuga. The Dream Yuga is the cheapest offering from the Honda house.

The report also said that the upcoming bike model would be developed indigenously at the company's Manesar manufacturing plant. Earlier this month, India's leading two-wheeler manufacturer, Bajaj Auto, introduced a competitor to Dream Yuga - Discover 100T that comes with a price tag of ₹50,500. The latest bike from HMSI would be its least expensive. HMSI President and CEO Keita Muramatsu confirmed the company was considering to launch the low-cost bike in the country.

Hero MotoCorp, which currently enjoys a market share of 69 percent in the volume-intensive mass commuter category, has seen a drop of three percent in the first nine months of the current fiscal year. Honda has been under constant pressure of maintaining its market share ever since it parted ways with Hero MotoCorp.