DSK-Hyosung may head to Gujarat for establishing new operations of assembly

After taking over Garware’s stake in the Garware-Hyosung motorcycle joint venture, DSK Motowheels is charting out an aggressive path for growing the high end premium sports motorcycle business in India. DSK is looking at localizing up to 90% of the components used on Hyosung motorcycles, that are currently assembled in India through the completely knocked down(CKD) route. However, all the parts to build the motorcycle are imported into India with none of the parts being sourced/produced locally. DSK MotoWheels aims to change all this, and then some more.

2012 Hyosung GT650R Sportsbike

For this, it is currently scouting for land in Gujarat and Goa. DSK-Hyosung is said to be eyeing a land parcel of about 100 acres close to Ahmedabad, Gujarat’s business capital. However, the joint venture is also said to be open to other locations like Goa. Maharashtra however seems to be relegated to the background with the state government’s VAT policy playing the part pooper yet again. So, DSK MotoWheels will look at locations in Gujarat and Goa to make a 300 crore investment for a brand new assembly plant that could also manufacture the Hyosung range of superbikes.
Until the new plant is up and running, the existing assembly facility at Wai, Maharashtra, where Garware-Hysoung used to assemble about 10 bikes a day, will continue to remain operational. So, this also means that future launches like the GT250R, the GV250 and the GV650 motorcycles will happen as per schedule. Also, DSK plans to aggressively expand the number of dealerships from the current number of 18, across India. DSK MotoWheels is said to have paid a premium for Garware’s stake in the joint venture, valued at about INR 60 crores.

2012 Hyosung GT650R Sportsbike

If DSK-Hyosung manage to achieve the targeted 90% of localization of parts, costs are expected to fall sharply. For instance, the price 650cc superbikes could fall by as much as INR 1.5 lakhs after localization. So, we’re looking at something like a price of INR 3.5 lakhs for the Hyosung GT650R, which is superbly competitive. This move has all the trappings of giving Hyosung motorcycles a solid shot in the arm, if all goes well. Of course, Indian motorcycle enthusiasts will be already dreaming of the varied fruits of localization. For now, we can only encourage this promising JV. Go for it, DSK-Hyosung!

Courtesy: DNA