Pune-based DSK Motowheels today said it will invest up to Rs 600 crore in the next five years to set up a manufacturing plant for rolling out ‘Hyosung’ bikes, apart from setting up a research and development centre.
The Hyosung bikes will be rolled out from the stable of Korean firm S&T group.
The company said it also plans to enter the commuter segment bikes in India around 2015-16 by launching 150 cc and 125 cc bikes, which would be locally developed with the help of the Korean partner.
“The idea is to start local manufacturing of Hyosung bikes by 2014. We are setting up a plant with a capacity of one lakh units and the total investment would be around Rs 500-600 crore in the next five years,” DSK Motowheels Director Shirish Kulkarni told reporters here.
The company has already identified a 100-acre site, about 70 km from Pune, where it would set up a paint shop, assembly line and a research and development centre.
The first bike to be rolled out from the plant will be the 250 cc motorcycle Hyosung GT250R, which was launched in the Capital today at Rs 2.75 lakh. The bike is being imported as a completely built unit.
Once the bike is assembled in India, its prices could come down to around Rs 2 lakh, Kulkarni said.
“In the first or second quarter of 2014, we will start manufacturing GT250R at the plant. The initial investment in the first phase will be around Rs 300 crore and in the second phase, another Rs 250-300 crore will be invested,” he said.
Elaborating on the company’s plans, Kulkarni said the company would develop 150 cc and 125 cc bikes.
“We want to enter the commuter segment as well. By the first quarter of 2015, we plan to launch a 150 cc bike and by the end of the same year or early 2016, we are looking at introducing 125 cc bike,” he said.
DSK Motowheels has already started the design and development of the 150 cc bikes and S&T Group will be helping it in the development of both the bikes, he said.
“By the end of 2015, we will have a total of eight models in the Indian market. We will be bringing in new models such as GV650, GV250 and another cruiser model,” he said.
At present, the company sells four models in India and by 2014, it will go up to six, he added.
Commenting on the sales target for this fiscal, he said: “By the end of March next year, we are looking at a total of 2,000 bikes. Our current booking is already over 3,000 units out of which 200 are delivered,” Kulkarni said.
