2-Wheeler majors hero honda and TVS Motors together constitute over 86% of the domestic two wheeler market, recorded their highest ever monthly motorcycle sales in September 2005. Analysts attribute the sales growth to new model launches like the TVS Star City,Victor Edge and Hero Honda Glamour. If the trend is any indication ,growth is expected to be even better I the second half of 06 due what with the festive season round the corner and a slew of promotions planned by companies as they scramble to beat sales targets at the fiscal-end. In 05 for instance, second half sales accounted for 54% of total volumes. The top -three two-wheeler companies have reported an average 20% growth in the first half of 05 and expect the same momentum in the second half. Two wheeler manufacturers are increasing their capacity to meet increased demand.BAL is raising its monthly production capacity to 2 lakh vehicles from 1.5 lakh. TVS Motor is raising capacity from 1 lakh units to 1.6 lakh units and Hero Honda , which is lining up a 150 cc model,is hiking capacity at its existing plant from around 2 lakh vehicles a month to 3 lakh units a month .With the 125cc motorcycle model priced closed to the 100cc, demand may shift in favour of the higher size engine category. This will force the 2-wheeler manufacturers to bring down prices of 100cc motorcycles in the next few months, currently selling at prices close to 125cc models.