Superbike manufacturer DSK Hyosung, a JV between DSK Motowheels and S&T Motors of South Korea, has said that it has identified 100 acres of land in the Karad region of Maharastra for setting up a new manufacturing plant.
20 Feb 2014 | 10125 Views | By Jaishankar Jayaramiah
Superbike manufacturer DSK Hyosung, a JV between DSK Motowheels and S&T Motors of South Korea, has said that it has identified 100 acres of land in the Karad region of Maharastra for setting up a new manufacturing plant.
According to Shirish Kulkarni, chairman of DSK Hyosung, the bikemaker has ...
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Superbike manufacturer DSK Hyosung, a JV between DSK Motowheels and S&T Motors of South Korea, has said that it has identified 100 acres of land in the Karad region of Maharastra for setting up a new manufacturing plant.
According to Shirish Kulkarni, chairman of DSK Hyosung, the bikemaker has initiated talks with Maharastra Industrial Development Corporation (MIDC) to acquire the land. “We are expected to take possession of the land in the next 3-4 months. By September, the company is expected to start construction of the new plant,” he said.
DSK Hyosung has earmarked an investment of Rs 350 crore in the new plant in a phased manner. The new manufacturing facility will have an annual production capacity of 100,000 units by the year 2020.
Thus far the company has invested around Rs 100 crore in India including setting up the existing assembly plant in Pune, which has a capacity of 2,500 units per annum from CKD kits.
Kulkarni was in Bangalore to inaugurate the company’s 35th dealership called Surfers Automotive in Jayanagar in Bangalore today. The 3S facility (sales, service and spares) is spread across 2,000 square feet and becomes the company’s second dealership in the city.
The garden city, which is an IT hub, is a major market for superbikes. Of around 3,500 bikes sold till now since the India launch of DSK-Hyosung in 2011, 600 bikes have been sold in Karnataka alone.
Kulkarni said that all six models including the recently launched 26.21bhp Aquila 250 cruiser, priced at Rs 270,000 (ex-showroom Bangalore), are seeing good demand in India. He, however, did not provide a sales break-up for each model.
At the recent Auto Expo, DSK Hyosung had along with the Aquila 250 also showcased the 125cc RT125D, 250cc GD250N and the 250cc Comet 250. The company plans to launch the two new 250cc models in the fourth quarter of the current calendar year.
Meanwhile, the bikemaker is looking to expand its dealership network. By the end of 2014, Kulkarni said the company will open another five dealerships, taking the total dealership count to 40 units.
The Indian market size for superbike is around 10,000 units per annum and is likely to see a growth rate of 20 percent. Last year, DSK Hyosung had a share of 17 percent in this segment and plans to increase this to 20 percent this year. “In the longer term, we plan to have a market share of around 27-30 percent,” concluded Kulkarni.
Photograph: Shirish Kulkarni, chairman of DSK Hyosung, launched the Aquila 250 in Bangalore today.