Premium two-wheeler manufacturer, Royal Enfield has indicated that it is considering launch a new 250 cc motorcycle in the Indian market.

The new model from the company might compete directly with the likes of Bajaj Avenger 220 DTS-i and Honda CBR250R in the Indian market. The new model might allow the company to tap into the sub-250 cc bike segment in the country by competing better with domestic as well as foreign rivals.

Experts have said that the company might be in eth early development stage of such a motorcycle for the Indian market and it might go on sale early in 2014.

Royal Enfield is increasing facing competition from rivals including Honda, Suzuki and Yamaha in the high power bike segment. The new model will be a step down for the company that is offering Bullet, Classic and Thunderbird, which are all powered by engines with 350 cc plus power. The company has not confirmed reports suggesting that it might launch 250 cc motorcycle in India but only said that is will focus on existing segments and will launch the new Royal Enfield Cafe Racer in the second half of the year.