Japanese automotive giant, Honda has announced the launch of a new motorcycle called ‘Dream Neo’ in the popular segment.

The company will offer the new Dream Neo with a price tag of just Rs. 43,150, which would make it the cheapest two-wheeler in the segment. Honda’s Motorcycle & Scooter India’s (HMSI) 110cc scooter ‘Dio’ was the lowest two-wheeler model at a price tag of Rs. 44,718.

HMSI President and CEO Keita Muramatsu said that the new Dream Neo is the company’s offering will allow the company to create in roads into the Indian commuter segment. The company is aiming to grow at a growth rate of more than 150 per cent in the 100-110 cc motorcycle segment. The company is planning to expand its sales outlets to about 2,500 within this fiscal year compared to 1,950 outlets in the financial year 2013.

“Overall, we are confident of customer demand for Honda two-wheelers and eye 43 per cent growth with 39.3 lakh unit sales in FY’14,” Muramatsu said.

The new entry-level ‘Dream’ series motorcycle is powered by a 110 cc engine and the company claims that it provides a mileage of 74 km per litre of petrol.