Legendary Bullet maker Royal Enfield is reportedly contemplating on producing 250cc motorcycles for India to challenge the current leaders in this sector like Bajaj and Honda.

Royal Enfield, a name which is celebrated for its Bullets, is seeking to expand its foothold in the market. According to reports, the company is seriously considering the option of 250cc two-wheelers for the Indian market, as there is an increasing competition in this segment.

The upcoming 250cc models would challenge the Bajaj Pulsar 220cc and Honda CBR 250R. However, the company has declined to comment on the latest report. At present, it does not produce any model smaller than 350cc displacement.

"Royal Enfield is a dominant player in the premium 350 cc and above motorcycle segment in India and will continue with its focus on this segment. Currently, Royal Enfield is not planning any motorcycle below 350 cc. In the second half of 2013, Royal Enfield will be launching the much awaited Cafe Racer that will also be in the premium category," a spokesman said to Hindustan Times.

Meanwhile, Royal Enfield's much anticipated Cafe Racer, which is powered by a 535cc engine, is reportedly gearing to launch by the end of this year. Cafe Racer is expected to generate more power and torque than the company's Thunderbird and Classic. The company is yet to reveal the pricing of this model for India. However, as per earlier rumours, the model is likely to fall in the bracket of ₹ 2 lakhs.