It is no secret that Mahindra 2 Wheeler (M2WL) is prepping a new 150cc motorcycle for the Indian market to challenge the likes of Suzuki Gixxer 150. The motorcycle maker, which launched its Mojo 300 in the Indian market in 2015 after ending an almost five-year wait, is now reportedly back to the drawing table again, this time for a new 150cc bike.

Although this 150cc bike was expected to make its entry into the market in 2015, the plans did not materialise. Now, if the emerging reports are anything to go by, the new Mahindra 150cc motorcycle is likely to be unveiled in India in 2016. The bike maker, which is aggressively planning to chomp on a big piece of the pie in the two wheeler market, is believed to be developing all the parts from the chassis to the engine of the new 150cc bike at the company's R&D plant in Pune, reports Indian autos Blog. The report says that the indigenously developed new Mahindra 150cc engine is currently in its testing phase in the country and this engine would be a BS-IV compliant unit.

Other details about the engine and design of the new 150cc motorcycle are scanty at this point of time as the model is believed to be in its embryonic form.  Mahindra 150cc motorcycle, which would sit between the company's Centuro commuter motorcycle and the 300cc Mojo, is rumoured to be an executive commuter bike.

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Meanwhile, Mahindra has opened its 2016 chapter with the unveiling of its 125cc scooter, Gusto 125. Gusto 125, the powerful version of the current model in the market, will go on sale in February after the Auto Expo 2016. At its heart, Gusto 125 gets 124.57 cc, four-stroke, air-cooled, M-TEC engine that is tuned to develop 8.5bhp of power at 7,000 rpm and 10Nm of peak torque at 5,500 rpm with CVT.