Two years after it withdrew Stallio, Mahindra is re-entering the motorcycle market with two new 110 cc bikes - Pantero and Centuro. The bikes, unveiled in Mumbai on Friday evening, will be test-marketed in select locations before the commercial launch in a few weeks.

The bikes will compete with five models - Hero's Splendor, Bajaj's Discover, Honda's Dream Yuga, TVS's City Star and Suzuki Hayate - to establish themselves in the highly competitive market of 100-110 cc bikes.

The segment - with five million units of annual sales - is expected to witness a lot of action. Mahindra's bikes, developed in-house, claim a fuel efficiency of 79.4 km per litre.

Most motorcycles in this segment claim a mileage of 75-80 kms and are priced from Rs.40,000 to Rs.50,000.

Anup Mathur, president, Mahindra Two-wheelers, said the firm has invested Rs.100 crore in research and development.

He added that the firm will launch at least one more motorcycle and one more scooter in 2013. The 300 cc Mojo is likely to be launched by September.

Viren Popli, executive VP, Mahindra Two-wheelers, said the firm wants to position its bikes as the most advanced ones in the 110 cc segment.