DSK-Hyosung eyeing the 125-150cc volume segment

[DukeNukem]

The recently formed alliance of DSK-Hyosung seems intent on diversifying its portfolio by entering the 125 cc to 150 cc bike segment. Its current portfolio is niche, with only the recently launched GT 250R in the sub-600cc category. This may appeal to enthusiasts, but does not bring in the volumes.

After previous failures in the Indian market, the Korean bike manufacturer re-entered the market in June 2012 with Pune-based DSK. This alliance will be aiming to grab a foothold in one of the world’s largest and most competitive two-wheeler markets. A mass segment product or two would definitely further that ambition.

The company has finalised plans to set up a manufacturing base with an investment of Rs 300 crore. It currently has an assembly facility at Wai (Maharashtra).

One significant aspect of the new plan is to aggressively localise its products to offer competitive pricing. While it launched the GT 250R at Rs 2.75 lakh, its main rival Honda CBR 250R is priced at just Rs 1.43 lakh. DSK-Hyosung has recognised this drawback and aims to reach 90% localisation in the next 12 months.

The current portfolio includes the cruiser ST7, sports bikes GT 650R, GT 650N and the GT 250R, all from Hyosung’s motorbike manufacturing arm, S&T Motors. There will be more launches this year from the S&T portfolio including a couple of 250 cc motorbikes (GT 250 & GV 250), along with the GV 650. More importantly, mass segment products like the sub-150 cc bikes and scooters are also in the pipeline.

After market duds like the Kinetic GF125 and GF170, both from its earlier association with Kinetic, all eyes will be on how DSK-Hyosung positions its latest offerings.

DSK-Hyosung has 18 dealerships currently and plans to expand to 40 by the end of this fiscal year.

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