Senior company officials, when contacted, confirmed the move but refused to divulge further details on the same.Trial production of the model is likely to commence in September this year.The company has targeted to sell around one million units of motorcycles in the current fiscal, with splendor accounting for 55-60 per cent of total sales.Hero Honda has also decided to discontinue production of its 100cc bike `Sleek'.

Sleek was introduced in India a few years back and despite good looks, it failed to garner much demand. "Sleek was much ahead of its times. The vehicle is currently being sold in Argentina, but in most other markets it has been replaced by Splendor. In the domestic market, Sleek sales have touched near zero levels. In view of this trend, we have decided to gradually phase out the bike and discontinue production of sleek shortly," the officials added.

The company had, in 1999, sold 2,256 units of sleek in India and abroad.Hero Honda had closed the 1999-2000 fiscal with a 58.26 per cent growth in net profit at Rs 192.08 crore, against Rs 121.37 crore a year ago. Its turnover for the year stood at Rs 2,270 crore, up 51 per cent from Rs 1,505 crore in 1998-99.

Profit before tax increased to Rs 284.62 crore from Rs 172.73crore, up 65 per cent. The company has already announced 100 per cent dividend amounting to Rs 44.33 crore. Hero Honda closed the year with a 42 per cent marketshare of the motorcycle industry, against 37 per cent in 1998-99. The company achieved total sales of 761,623 motorcycles, representing a growth of 44 per cent over the previous year.