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Despite cut throat competition, DSK Hyosung is planning to enter in mass segment bike sector of 125 cc by end of 2015. The company will manufacture these bikes locally in technical collaboration with South Korea's S&T Motors. DSK Hyosung is setting up a manufacturing facility near Karad, 100 kms from Pune which will be operational by end of 2014. Currently, DSK, which assembles Hyosung bikes at its Wai facility near Satara.
Speaking to Business Standard about the 125 cc bike plan, Shirish Kulkarni, managing director, DSK Motowheels said, " We are entering into 125 cc segment which will be manufactured at our Karad facility. Currently, there are very few quality products in the market and customer has limited options. In this segment, Hyosung is manufacturing RT-125 with duel cylinder in Korean market which is not suitable for India. Indian version will be consisting of single cylinder and price wise much cheaper than the Korean version. We will make engines locally for which is Hyosung is providing all the technical support. The bike will hit the markets by end of 2015. We will keep the price band between ' 50,000 to ' 65,000.
He added, "Despite of very cut throat competition in 125 cc which is supposed to be a mass market, I am sure our product will do well. Hyosung is a specially developing engine for this bike and some parts will be sourced from local market. In future, we have a plan to export these bike to neighbouring countries like Nepal, Bangladesh and Sri Lanka. In one year of their existence Hyosung has built a name for itself in the minds of Super biking enthusiasts of the country and we want to take this forward. Hyosung has the experience, technology and product mix required for Indian market. We have plan for localization to bring down costs and make super bikes more affordable in India.
Marking the first anniversary celebrations of their owners club HY Ryders, DSK Hyosung today launched their signature edition GT250 R LE, priced at ' 2,97,000 (Ex-showroom Pune). Painted in hurricane yellow, only 50 limited units are available in market.
DSK Group is investing ' 400 crore in total for the Karad facility. Initially,' 200 crore will be spent on setting up plant and rest ' 200 crore for the 125 cc bike production. DSK is also planning to form a JV with S & T Motors. Currently it holds principal dealer contract with S & T Motors.
DSK, which bought Garware Motors' auto business for ' 80 crore in July 2012, is currently selling Hyosung's GT250R, GT650N, and ST7 and expects the total sales to touch 1400 units by March 2104.
It expects the total sales to touch 1400 units by March 2014. It has sold 1100 units so far this year. Currently, DSK Hyosung has 26 dealership across India.
