Hitherto, Honda's lineup had the cheapest bike retailing at an Ex-Showroom price of Rs 44,718, Honda Dio, a scooter in the 110cc segment but it has now forayed under the Rs 45,000 segment with its cheapest bike Honda Dream Neo at just Rs 43,150 making it the cheapest in its stable.

Allegedly the 110cc bike is capable of a healthy mileage of 74kmpl, according to Honda. In the same series of cheaper two-wheelers, Honda Dream had another variant just above the Rs 45,000 mark, Honda Dream Yuga.

Honda Motorcycles aims to achieve a 150% growth in this 100-110 cc motorcycle segment. The company has also planned for an expansion of the number of outlets to 2500 by the end of this year.

The bike is specifically designed for Indian customers with comfort, small engine capacity and a mileage of 74 kmpl of petrol.

Developed specifically for the Indian customers, the new entry-level 'Dream' series motorcycle is powered by a 110 cc engine and the company claims that it will give a mileage of 74 kilometre per litre of petrol.

However it has to rival the Hero HF Dawn motorcycle that is available for Rs 36,600 ex-showroom Delhi with a similar mileage range. Yamaha will add to the competition with its upcoming cheapest motorcycle expected in the price range of Rs 30,000 only while also making India its production hub.

(AW- Anil)