Honda Motorcycles and Scooter India (HMSI), a wholly-owned subsidiary of Japan's Honda Motor Co, is planning to launch two models in the big motorbike section priced over Rs.1 million by the end of this fiscal.

Disclosing this here saturday, HMSI president and CEO Shinji Aoyama told reporters that the company's plans followed its findings that there was a narrow but strong market for the high priced two-wheeler category in India.

"Both these models will be priced at more than Rs.1 million. We are targeting a niche market, which may not be that big but is definitely very strong," Aoyama said at the launch of the company's 125cc bike CBF Stunner.

"We are also planning to come out with another model in the small two-wheeler category by the end of this fiscal," he added.

"We've set a target to sell 80,000 pieces of the 125cc variant we have already launched in the remaining nine months of the fiscal. It will be eight percent of our total sales target of 900,000 this fiscal. The four models taken together will be 10 percent of the turnover," he said.

The Gurgaon-based company now has a market share of 11 percent, and hopes to raise it to 13 percent after the 2009-10 fiscal.

Asked about the impact of Tata Motors' Rs.100,000 car Nano on the two-wheeler market in India, Aoyama said: "The inexpensive cars will make some dent in the two-wheeler market in future, that's for sure. The growth of the two-wheeler sector will also slow down.

"But then two-wheelers are not only a mere means of transportation, they are more than that. They are fun to ride, and also a means of enjoyment. So, the demand for two-wheelers will always be there," he added.

The Tata Motors' small car is set to hit the market in October from its factory at Singur in West Bengal's Hooghly district.