The 36-year-old, Britain's most decorated Olympian with six gold medals, is going into business with leading UK retailer Evans.
"Cycling has been a central part of my life from an early age and has helped me to achieve so much," said Hoy, one of the 12 nominations for BBC Sports Personality of the Year; the award he won after the Beijing Games in 2008.
"I want to help more people experience the power and enjoyment of cycling, as well as demystifying it and making it more accessible to all.
"That's why I decided to create a brand that embodies this vision and my passion,
"I'm excited to be working with Evans to deliver a new brand that can share my enjoyment of cycling with a whole new audience."
The initial launch will consist of three road bikes for recreational and sports cyclists and four city bikes for commuters and leisure cyclists.
The early models will be for youths as well as adults and there are plans to extend the range to cater for every cyclist, including a limited-edition track bike.
"I'm really enjoying building my brand from scratch," Hoy added. "There are so many aspects that need to mesh perfectly and finding that balance has been very exciting and rewarding.
"I've been working very hard on developing the brand values as well as the visual features, which will appear on all the bikes.
"This is something I will really get my teeth into. When I do retire I can still play on bikes and be able to design stuff. The Hoy brand is going to stand for enjoyment of cycling."
Hoy leaves for Perth in Australia on Monday for winter training and talks of the Commonwealth Games as being a "dream end to my career," but insists he will have to justify his place in the Scottish team.
"I'll only be there if I believe I am physically able to do it. Fingers crossed I will be there," he added.
He is quoted as a 125/1 outsider for the Sports Personality of the Year award this time and has no arguments about that.
Hoy added: "I think I will probably have a tenner on Bradley (fellow cyclist Bradley Wiggins) like I did just before he went down the Champs Elysees to win the Tour de France!"