Hero Honda Motors, which makes close to half the motorcycles sold in India has recently said that it believes that a further rate hike in pricing levels may take its own toll from the company.

In fact, Ravi Sud, Chief Financial Officer, Hero Honda Motors recently said that the demand will start to tumble in the second half of this year. It is to be mentioned here that company plans to boost production about
8.7% in the year ending March 2011 to more than five million motorcycles and scooters compared with a 23% increase last fiscal year.

For the record, the two-wheelers have already announced a couple of hikes this fiscal but the demand hasn't slowed down yet.

However, industry officials are of a view that if there are more hikes that will come in the way of the consumer, the situation of buying decision postponement may once again hit the company.

Umesh Karne, an analyst at Mumbai-based Brics Securities said that the demand will surely slow down in the coming months and Hero Honda is expected to lose some of its market share as the relatively new players will add new products to their portfolio.