Japanese auto giant Honda launched its cheapest two-wheeler 'Dream Neo' in India for ₹43,150.

With the launch of the motorbike in the India, Honda hopes to achieve a growth of over 150 percent in 100-110 cc segments. The company which is seeking to expand its base in the country will increase the number of sales outlets to about 2,500 by the end of current financial year. Currently Honda has 1,950 outlets in India.

"The Dream Neo is Honda's next big leap towards creating deep inroads into the Indian commuter segment," HMSI president and CEO Keita Muramatsu said.

The new bike is powered by a 100cc engine and is expected to produce a power of 8.36 PS at 7,500 rpm and a peak torque of 8.633 Nm at 5,500 rpm. The vehicle will come in six colours which include Black with Red Stripes, Black with Violet Stripes, Force Silver Metallic, Monsoon Grey Metallic, Midnight Blue Metallic and Alpha Red Metallic. Honda Dream Neo will be pitted against Hero Motorcorp's Splendor.

Honda has been under constant pressure of maintaining its market share ever since it parted ways with Hero MotoCorp. Now, the company hopes to revive the entry level motorbike market with its Dream Neo.

"Overall, we are confident of customer demand for Honda two-wheelers and eye 43 per cent growth with 39.3 lakh unit sales in FY14," Muramatsu said.