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| Edited By: Yuga Chaudhari |Source: DNA |Updated: Mar 18, 2018, 05:44 AM IST
Garware Motors has sold its business of assembling and marketing sports bike Hyosung in India to Pune-based real estate developer DSK Group, ending a year-long association with the Korean brand.
DSK, one of the biggest dealers of Toyota, will now look after manufacturing and distribution of Hyosung bikes in India under a new entity DSK Motowheels. The company is looking at building a full-fledged plant for making Hyosung bikes in the next 18-24 months. These bikes are currently being assembled at Wai in Maharashtra
“Our aim is to reach 90% localisation within the next 12 months. This will help in making the bikes more affordable for the customers. For example, the 650cc bike will be cheaper by `1.5 lakh approximately if localisation goes to 90%,” said Shirish Kulkarni , managing director of DSK Motowheels.
The company is currently scouting for options for building a new plant. “We are looking at a location around Pune. However, the support from the Maharashtra government has not been favourable yet. We might look at options like Goa and Gujarat as well,” said Kulkarni.
Garware launched Hyosung bikes in April last year and managed to sell 611 units with existing models ST7 Royale and GT 650R and GT 650N. DSK aims to sell around 750 bikes of the current models this year. However, it is also expecting some significant volume from the new models. Three bikes are in pipeline for this year - GV 650 cruiser, GT 250 R and Aquila.
Garware has invested around `60 crore for setting up assembly operations for Hyosung. Kulkarni did not reveal the deal value between the two companies citing confidentiality agreement, but said that DSK paid a premium to Garware for buying Hyosung operations.
“We always wanted to get into the manufacturing business. We thought this opportunity should be explored. Garware did not have any intention of selling the business, they came to us to help us sell their bikes,” Kulkarni said.
Hyosung is owned by S&T Motors and DSK plans to introduce scooters, electric scooters and all-terrain vehicles from S&T’s stable.
