NEW DELHI, Nov 23: Hero Honda Motors is planning to launch a 160 cc four stroke bike priced around Rs 50,000 during next year. This is the first four stroke bike which will be launched in this segment.

Top level company sources said Hero Honda will invest Rs 100 crore in 1998-99. The company is planning to raise Rs 30 cr throgh external commercial borrowing (ECB), while the balance amount will be funded by internal accruals. The company has already raised ECBs worth Rs 90 crore last year, which was invested for setting up the Gurgaon plant. Sources said the new model will cost Rs 30 crore. Rs 70 crore will be spent on expansion of the two plants located at Dharuhera and Gurgaon in Haryana. The company is planning to achieve an installed capacity of 5.5 lakh units by 1999-end. It will manufacture five lakh vehicles next year (1998-99). Hero Honda will close this year with 4.02 two-wheelers and next year with 4.5 lakh units.

The proposed motorbike will meet the 2000 emission norms and will be more fuel efficient. The company will offer customers the option of a self starter facility, sources stated. Another unique feature is that it would be fitted with disc brakes. It will be manufactured at the company's new plant at Gurgaon. Most of the two-wheeler companies are now concentrating on motor cycles as it is the only sector which is looking up amidst the recession in the automobile industry. Escorts Yamaha and Bajaj Auto are also planning to enter the four stroke segment. Escorts Yamaha Motor Ltd has plans to launch a 125 cc four stroke bike which will roll out in mid-1998. Bajaj Auto is also finalising plans to launch a 110 cc four stroke bike in April.

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