The Karnataka government is allocating 500 acres of land to Hero Honda for setting up their manufacturing plant which would employ 1000 skilled workers near the northern district headquarters town of Dharwad. This plant would help Hero Honda manufacture one lakh units as it forecasts increase in sales to 5.6 million units. The company is also working on 12 new products to be launched in the next 18 months. Out of the upcoming products, there will be a few premium products including a 250cc bike and scooters for the mass market segment.