Hero Honda is planning to explore diesel powered motorcycles by creating a new segment. The company is in talks with a Chennai based firm and an agreement is expected to be signed in May, 2011. News is that these bikes will feature an engine capacity of 400cc and are currently at ARAI, undergoing certification. The diesel powered 400cc Hero Honda bikes will be launched early next year, priced aggressively. The Hero Group is planing to assemble the bikes at its Dharuhera facility, where it is also developing its R&D facility. The company sees a potential of 1.5 lakh units in the first year itself, which is impressive.

Source – NDTV Profit