Even as Tata Motors is giving the finishing touches to the countrys cheapest car to be priced at Rs 1 lakh ($2,500), the new segment it has opened up is seeing a new entrant with a difference. Two-wheeler major Hero Honda Motors is also planning to bring the cheapest two-wheeler in the market. The proposed vehicle would cost about $ 300-350 (about Rs 15,000). We are still evaluating the feasibility of bringing a product which will be cheaper yet offering best value to the customers, Pawan Munjal, managing director, Hero Honda, told FE. Though that sort of bike is currently not on the drawing board but we are seriously looking at that, Munjal added. Munjal was replying to a question about the company's plan to roll out a low-cost vehicle costing $300-350 based on the likelihood of the government offering sops to companies, which will develop and sell appropriate products for the larger population of the country. We have the capability to manufacture low-cost vehicles, Munjal said.
Currently, the cheapest two-wheeler including the recently-launched electric bikes by Electrotherm and Hero Group cost around Rs 24,000.