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 from the stable of Korean firm S&T group, apart from setting up a research and development centre.
The company said it also plans to enter the commuter segment bikes in India around 2015-16 by launching 150 cc and 125 cc, 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, he added.
The first bike to be rolled out from the plant will be the 250cc motorcycle Hyosung GT250R, which was launched in the Capital today, priced at Rs 2.75 lakh. The bike is being imported as completely built unit.
Once the bike is assembled in India, its price could come down to around Rs 2 lakh, Kulkarni said.
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"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.
"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 development of the 150 cc bike and the 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 that will go up to six, he added.
Commenting on 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.
DSK Motowheels had earlier this year taken over the distribution business of S&T Group's Hyosung bikes in India from Garware Motors in June this year.
The company has 18 dealers in different parts of India and it aims to have a total of 30 by March next year.