DSK-Hyosung plans to set up its second plant in Maharashtra where it intends to start production of 125cc-150cc bikes for both domestic and export markets
Hyosung has been clocking sales of more than 150 bikes a month recently, which is quite commendable considering their product portfolio starts above Rs 2.8 lakh. But Hyosung it now seems has set its eyes on the high volume, mass-market segment. It is reported that DSK Motowheels, Hyosung's Indian ally, is contemplating to enter the 125-150cc two-wheeler segment under the brand "DSK Hyosung".
Currently, DSK Motowheels has a CKD (Completely Knocked Down) facility in Wai on the outskirts of Pune where it assembles its 250cc to 650cc range of bikes. The current plant has a production capacity of 250 two-wheelers per month and in tune with its expansion plan, the company is eyeing to buy a 100-acre land in Maharashtra to set up its second plant. Apart from manufacturing 125cc to 150cc bikes for the Indian market, DSK Motowheels also plans to export them for the international market.
Speaking about the new facility, DSK Motowheels Managing Director Shirish Kulkarni is quoted by PTI as saying, "We are planning to invest around Rs 300-Rs 350 crore for setting up our second plant in Maharashtra. Mostly we will be finalising the 100-acre land in Maharashtra itself. It will be highly automated plant with a paint shop. Probably the construction should commence in six to eight months from now,"
Buoyed by the young generation’s preference for performance-oriented bikes, the 125cc to 150cc is one of the fastest improving segment in the Indian two-wheeler market. Bajaj has been the undisputed king in this segment so far and their success can be credited to competitive pricing of their products. If DSK Motowheels want to make an impact in this segment, pricing will need to be spot on. What works in their favour is that they are already a firmly well-established name in the premium two-wheeler segment.
As of now, the company has a dealership spread of 25 outlets in the country and it plans to add 10 more by the end of 2013. Currently, DSK Motowheels has five bikes on sale which include GT 250R, GV 650 Aquila Pro, GT 650R/N and ST7 and will be launching the naked version of the GT a250R by end of the year.