However, the company is keeping the details of the venture under wraps. It is not clear whether it will enter the commercial vehicle or the passenger car segment.
Pawan Munjal, managing director, Hero Honda Motors, said: "We are looking to foray into the four-wheeler segment. But all I can say now is that we will be entering the market if we get a right partner."
Meanwhile, the company launched a revamped version of its entry-level economy bike CD Dawn, which is equipped with a new engine, and a dearer variant the CD Deluxe.
Munjal added: "These two launches are reiteration of our trust and belief in the 100cc entry segment. We believe that as new customers come into our fold, many of them will be looking for value-for-money products in the segment. These two launches fill that gap."
The company is expected to achieve a growth of 25 per cent in the segment, including exports, in the next 12 months. Currently, 60,000-70,000 units of the total sales of 2,80,000 units (November sales figure) come from the entry level segment.
However, according to Crisil research, in the same month, the company's share in the segment came down to 24 per cent from the last year's share of 27.96 per cent. Bajaj's Platina is the market leader in the economy segment with a share of 35 per cent.
Anil Dua, vice-president, sales and marketing, Hero Honda, said that the company would be slowly phasing out the outgoing CD Dawn, the production of which stopped last month, from the showrooms. The new Dawn is targeted at the rural and semi-urban markets and the Deluxe variant at the semi-urban and urban markets of the country.
"The 100cc segment will continue to grow like the way it has in the past and hence is a very important market for us. We believe the market still has a huge potential to grow," he added.
The CD Dawn will be available at a price of Rs 31,900 and its Deluxe variant will be priced at Rs 34,900, both prices are ex-showroom Delhi.
Cosmetic changes of the bike will include a newly-designed fuel tank, multi-reflector tail lamp and 3D graphics. The bike will be available in four colours with special financing schemes for the rural market.
The company, for this purpose, has tied up with rural financing institutions. Besides, company has also lined up two more launches in the following months.
