Swati Khandelwal, CNBC-TV18

Bajaj Auto was the first to call the death of the 100 CC market and now others seem to be following suit. HMSI's Stunner is the latest launch in the 125 CC category, the fastest growing segment in the bike market.

The two wheeler market has seen a negative growth of 7% last year and with interest rates moving up, things are unlikley to get easier. But this hasn't stopped manufacturers from launching more products. Honda Motorcycle and Scooters India (HMSI), has introduced the new 125 cc Stunner, but priced at about Rs 48,000, will it significantly shore up HMSI's marketshare from the current 11%? The company certainly hopes so.

After Shine, its HMSIs second entry to the 125 CC segment, the fastest growing and contributing almost 25% of the total motorcyle market. Honda plans to sell 80,000 units of this bike this fiscal and even launch two to three new models this year.

S Aoyama, President & CEO, Honda Motorcycle and Scooter India, said, "We plan to bring 800 CC plus bikes this year as well."

The Stunner will compete with Bajaj's XCD, the cheapest bike in the 125 CC segment, Hero Honda's Super Splendour, TVS's Flame and Yamaha's Gladiator. But unlike Bajaj, HMSI doesnt want to give up on the 100 CC segment all together. It plans to launch a bike in this category next year to eat into hero Honda's share.