Despite admitting that Tata Nano may impact India's two-wheelers market, Honda Motorcycle and Scooter Ltd (HMSI) today exuded confidence that the demand for scooters in domestic market ''will continue to be strong''.

''We do not deny the impact of Nano on the two-wheeler market ...but, we are confident that the demand for scooters coming from the domestic market will continue to be strong,'' Company President and CEO Shinji Aoyama told reporters here.

Yesterday, Bajaj Auto and Hero Honda had also said that they see a strong growth in two-wheelers segment despite the car's launch.

After Tata Motors launched Nano on March 23, country's largest carmaker Maruti has said the people's car will have some impact on the market.

A wholly-owned subsidairy of Japan's Honda Motor Company Ltd, HMSI today launched the new Activa priced at Rs 39,800 (ex-showroom Delhi) and plans to sell 5.50 lakh units in the next fiscal.