Global two-wheeler makers Tuesday unveiled plans to start selling a slew of new models in India to tap a booming demand for motorcycles and scooters as Asia's third-largest economy roars to recovery amid a still-feeble global rebound.

Japan's Honda Motor Co. (7267.TO) introduced six new two-wheeler models and Yamaha Corp. (7951.TO) rolled out two new motorcycles at the ongoing New Delhi auto show.

Harley-Davidson Inc. (HOG)--the U.S.-based maker of iconic bikes--said it will start selling 12 motorcycle models in India from April. The bikes will be priced between INR695,000 and INR3.5 million in New Delhi.

India is the world's biggest scooter and motorcycle market after China and global bike makers are eyeing a greater share in the market that is currently dominated by Hero Honda Motors Ltd.--a joint venture of Honda Motor and India's Hero Group--and Bajaj Auto Ltd.

The launches come at a time when vehicles sales in India have picked up after being hit in the second half of the fiscal year that ended March 31, 2009. Sales were impacted due to an economic slowdown and banks' reluctance to lend for purchasing two-wheelers on concerns of loan recovery amid job losses.

Sales started accelerating in early 2009, aided by new launches and the federal government's stimulus measures that included tax cuts. Banks have also resumed lending to the sector.

Sales Forecast

Honda Motorcycle & Scooter India Pvt. Ltd. said it expects to sell more than 1.25 million two-wheelers in India in the fiscal year that ends March 31, a growth of 17% over the previous year. It expects vehicle sales to reach 1.5 million units in the next fiscal year.

India Yamaha Motor Pvt. Ltd. aims to sell 300,000 bikes in 2010, Chief Executive Yukimine Tsuji said. He didn't give the sales figure for 2009.

Harley-Davidson didn't provide any sales forecast.

-By Ankur Relia and Rakesh Sharma, Dow Jones Newswires; +91-22-6145-6121; ameya.karve@dowjones.com
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