Chennai: Even as it is in the midst of launching new models and relaunching the existing ones, Majestic Auto Limited is pursuing its goal of creating a new segment viz. the motorised cycle.

The company, more commonly known as Hero Motors, is field testing its motorised cycles, which will be known as Cyclomoto.

According to Sanjay Bharadwaj, senior vice president (Sales and Marketing), ten units of motorised cycles have been sent to dealers in different parts of the country for testing. "The project is very much on. We will look at commercialisation after the test reports."

The company has changed its original strategy and now instead of targeting all the cycle makers it will cover cycles of only its group company, Hero Cycles.

Meanwhile Majestic Auto is graduating towards becoming a full fledged scooter company with plans to launch a slew of new models. On the anvil are a moto scooter with the Italian company Aprilia’s assistance. The model will be in two variants. While the Hero Aprilia Sonic will be available at a price range of Rs.26,000 and Rs.31,000, two other variants also to be launched are the Hero Aprilia SR 125, a four stroke liquid cooled engine and the Hero Aprilia Twister, a family vehicle.

"Hero Aprilia Sonic is targeted at females in the age band 18-21 and the launch is slated next January. The base model will have a 75 cc engine while the other variant will have a 92 cc engine. Hero Aprilia SR 125 targeting 18-21 males and will be launched in April 2005. On the other hand Hero Aprilia Twister will be for 30 plus male with a family," says Bharadwaj.

In order to leverage the Italian company’s brand equity, Majestic Auto will also change its brand signage to Hero Aprilia from the present Hero Motors.

While all that is for the future, Majestic Auto has launched a 92 kg-92cc step-through bike called the Hero Sting in the economy (Rs.22,000) and premium (Rs.25,000) versions. This is also the first time an Indian company has launched a bike where the weight to power ratio is 1:1.

The company is also in the process of relaunching its old model, the Hero Smart. The model, relaunched last year, didn’t find favour with the buyers as it had some unfriendly features. Majestic Auto stopped producing the model last October due to poor demand but has now resumed rolling out the Hero Smart.

Majestic Auto is also relaying its shop floor and has pruned its vendor base in order to meet the production norms laid by Aprilia and Bombardier ROTAX, Austria, with whom the company has signed collaboration agreements.

The Indian company hopes to export two wheeler engines/two wheelers to Aprilia. "Engines for the European market will have higher power than what we will sell here as the Indian buyer would like to economise on the fuel cost while the overseas buyer wants more engine power. However our first priority is to produce the engines for our requirements," Bharadwaj adds.

According to him talks are on with Bombardier ROTAX to manufacture all terrain vehicle (ATV) engines as well. However to start with, Majestic Auto will roll out four-stroke two wheeler 125cc/200cc engines.

When that happens, the company will be on a multi engine platform. Currently Majestic Auto sources engine technology from the group joint venture outfit, Briggs and Stratton, USA.

In order to fund its new plans Majestic Auto plans to raise Rs.200 crore through private placement. Last fiscal the company sold 65,000 units (50,000 domestic sales, exports 15,000).