To capture the volume-driven entry- level motorcycle segment, the country's second-largest two- wheeler maker Bajaj Auto will launch a 100cc bike, Discover, which will pitted against Hero Honda's Splendor and Passion.

Bajaj Auto Ltd (BAL) will launch the bike with DTS-Si technology on July 27, the commercial production of which will begin on July 17 at its Chakan plant.

"Our 100cc 'Discover' will compete with Splendor and Passion," BAL Chief Executive Officer (two-wheeler) S Sridhar said in Mumbai on Thursday.

"We are launching this 100cc bike with DTS-Si. This 100 cc bike will give a mileage of 80 km per litre and run for 100 km in a day," he added. The company is pitching this as a "long-distance bike", he said, adding that it is targeting to sell two lakh units of these in a month.

The production of the Discover DTS-Si 100cc would be inaugurated by R Chidambaram, Principal Scientific Advisor, Government of India.

Bajaj Auto was earlier planning to exit the 100cc segment, which accounts for the highest motorcycle sales. BAL Managing Director Rajiv Bajaj had last month said the company was looking at increasing its monthly domestic bike sales to about 2 lakh units by the second half of this fiscal by "virtue of couple of launches over the next few months". It is also aiming to hike its exports to 60,000 units a month.