DSK Motorwheels, part of the Pune based DS Kulkarni group, has preferred Maharashtra over Gujarat and Goa for setting up of its Hyosung bike manufacturing plant due to logistic reasons.
The company is planning to increase the localization of its bikes to 90% over than next couple of years in lure of bringing down its cost by 30% and a new manufacturing unit is another step in that direction.
Besides that the DSK is also considering of bringing scooters and All-Terrain Vehicles (ATVs) from Korea’s S&T Motors to India in coming years.
Shivapada Ray, General Manager, Sales and Marketing DSK Motors said that both Goa and Gujarat government showed a lot of interest in constructing plants in their respective states but considering the situation logistically firm decided to bring the plant down in Maharashtra due to several involved factors.
Currently the company is assembling the Hyosung bikes from the Korean S&T Motors at a small assembly line at Wai in Maharashtra, which can only assemble 10 bikes per shift per day. DSK has also acquired the motorbike business of another Pune based firm Garware Motors in June this year and Wai unit has come as a part of the acquisition.
DSK is planning to set up 1.2 lakh unit per annum plant, that will require about 70 to 100 acres of land with an investment of around 400 crore. The new plant will also house a small R&D center. Ray informed that the location of the plant has yet not been decided but the firm is in process of finalizing the place for the plant.
On topic of bringing scooters and ATVs into Indian market he said that the company is thinking about it but it is only possible once the plant is set and working. The scooter segment in India is mainly based on the pricing and the competition is quite stiff. He also added that they want to compete with the best and that can only be possible by lowering the prices by localizing the products.
The Hyosung bikes hardly have any localization for now and the price range between Rs. 2.79 lakh and Rs. 5.8 lakh. They are basically imported as completely locked down units from Korea. This attracts a custom duty of around 30-31 percent including the cess and other surcharges. He also added that DSK is currently selling GT650 Naked, GT650R, ST7 cruiser and has recently revealed the new GT250R in the market. It is also planning to launch the GV650 in November which will be followed by GV250.
He also explained that the 200 to 300 cc segment is the most important market segment they are concentrating on. This segment is clearly becoming the power biking section seeing an impressive growth of more than 100 percent. The market will continue to grow at a tremendous rate with more and more companies launching their products in this competitive segment.