"We are in advanced talks with our Korean partner to develop a single cylinder 125 cc commuter motorcycle for the Indian as well as the international market," Shirish Kulkarni, chairman at DSK Motowheels told Financial Chronicle.
The Pune-based company, part of the Rs 5,000 crore diversified DSK Group, is investing Rs 400 crore to set up a new facility at Karad, about 130 km from Pune, where a new manufacturing facility would be set up, he said. "The Korean engineers will set up the plant with their state-of-the-art technology and the facility will be up and running by the end of 2015," Kulkarni said.
He said the Korean S&T Motors, which owns the Hyosung brand, already has a powerful twin cylinder RT 125 cc motorcycle which it sells in its country. "We have convinced the management that at nearly Rs 2 lakh, it will be too expensive for the Indian market," Kulkarni said.
He said the Korean partners had agreed to develop a single cylinder 125 cc motorcycle for the Indian market. "Once we set up the engine and the assembly facility for the 125 cc motorcycle, and sell it in the Indian market, we can then also introduce new models in the 150, 175 and 190 cc range from the same platform," Kulkarni said.
He said he was also in discussion with the Korean partners to develop a range of motorcycle below 250 cc range in India for the international markets to be cost competitive.
"After we introduce the new 125 cc bike in India, we will first enter the South Asian countries such as Sri Lanka, Nepal, Bangladesh and African and Latin American continent in phased manner," Kulkarni said.
He said his target is to price the new 125 cc motorcycle between Rs 50,000 and Rs 60,000. "Despite intense competition both in the domestic and international market were the three big players such as HeroCorp, Hond and Bajaj Auto target for a big pie, there is space for new entrants with great Korean powerful models," Kulkarni said.
He said at present the Korean brand of superbikes are sold in 70 countries and it would be economically viable to produce a mass segment motorcycle in India and others models below 250 cc range to enter in these overseas markets.
DSK Motowheels plans to sell over 1,400 motorcycles ranging from GT 250R to GT 650 naked, GT 650R, Aquila Pro 650 cc and ST7 Royale 700 cc with the price ticket from Rs 2.75 lakh to Rs 5.79 lakh by the end of fiscal 2013-14.
It sold 1,100 units in the April-November 2013 period. At present, these bikes imported through CKD route are assembled at its facility at Wai, near Pune.
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