Munjal Family's Hero group and Japan's Honda recently parted ways, and wasting no time, Hero Group is actively exploring – what could become the next market share grabber – diesel engines for its larger bikes.
NDTV has learnt that the Hero Group is keen on entering the diesel two wheeler space to create a new segment and with it a new category of buyers.
Hero is already in talks with a Chennai based firm with whom a supply agreement is likely to be signed in first quarter of the next fiscal.
The bikes will sport engines over 400 cc which are currently undergoing certification testing at ARAI.
These motorcycles are likely to hit the market in the fourth quarter of the next fiscal.
Depending on response Hero could look at a possible licensed manufacturing of these engines in the future.
Hero Honda has declined to comment on NDTV's query regarding these bikes.
Sources say these bikes will be assembled at Hero Honda's Dharuhera plant where it is also developing its own R&D base. Interestingly the company sees the potential of up to 150,000 units in the first year itself, clearly indicating that it is considering aggressive pricing too.
Royal Enfield is also in talks with the same supplier for a future diesel engine for it bullet range. Of course in both cases once the agreement is signed respective vendors will be brought in to take the development of the bikes into the next phase in quick time.