Korean two-wheeler major Hyosung, part of S&T Motors, and its assembly-cum-distributor partner in India, DSK Group, have decided to set up a manufacturing plant to make, sell and export bikes and engines in the the range between 125CC and 700CC, thereby entering the entry level/mass-selling segment, said Shirish Kulkarni, MD, DSK Motorwheels.
DSK is open to accommodating S&T Motors as an equity partner in the new venture, however, it is for the Korean company to take a call on whether to invest or begin a technical collaboration, Kulkarni said.
?We are bullish on the Indian two-wheeler market. Though we have been selling bikes above (both sports and cruiser) 250CC to 650CC with five products in India and achieved a stupendous sale of 1,200 units in less than 12 months of our tie up with Korean company, we need to be in the entry level segment of 125CC to 150CC. Towards this, both partners decided to set up a manufacturing plant not only to make products ranging from 125CC to 700CC but also to make engines ? for both domestic and export markets,? Kulkarni said.
?The plant will be a few kilometres away from Pune. The paper work has already begun. We will be investing R350 crore into the 100-acre plant initially and hope to commence production in the next two to three years. The plant at Wai near Pune will be closed down once the new plant starts and will be utilised for storage as it is not suited for manufacturing. Currently, DSK assembles 250 bikes a month at Wai,? he said adding the bikes to be made in India will be sold under Hyosung brand.
?We will start with smaller capacity of 125CC in the new plant. The bikes will have 45% localisation level to start with and will touch 90% going forward,? he said. The company will source a host of components locally to give customers a competitive price.
