South Korean superbike maker Hyosung Bikes began its fresh journey in India on Tuesday with the launch of a relatively mass market 250cc mobike - GT250R - priced at Rs 2.75 lakh in Delhi.
The mobike, currently being imported from Korea, would be the first product to be assembled in India in 2014 that would bring the price down to Rs 2 lakh.
The company had ventured into India last year with Pune-based Garware Motors and launched two bikes costing upwards of Rs 5 lakh. It, however, did not manage to cut much ice in world's second-largest two wheeler market. In June, DSK Motowheels took over from Garware and has already promised investment of up to Rs 600 crore and commuter segment mobikes as well.
"The idea is to start local manufacturing of Hyosung bikes by 2014," said Shirish Kulkarni, director, DSK Motowheels. "We are setting up a plant with a capacity of 100,000 units and total investment would be Rs 500-600 crore in the next five years. The investment would be made in two phases."
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 company would also develop 150cc and 125cc bikes work on which work has already started.
"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. "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."
At present, the company sells four models in India. It is targeting sales of 2000 units by March 2013.