DSK Hyosung, the popular superbike manufacturer, is planning to double its sales in the Indian market in the year 2014 by selling units of various models. This company, collaboration between DSK Motorwheels and S&T Motors from South Korea, recorded sales of approximately 1851 bikes in the previous year and plans to take the same number to 3000 this year to enlarge its foothold in India.
According to a report in Business Line, the company is not going for a pan India strategy and would be focusing on Gujarat state for the time being. Also, DSK Hyosung plans to make hay while the sun is shining, meaning it would want peak sales to happen during the upcoming festive season, which will last for three months starting from September. A company official, in an interview, spoke about the same, confirming the firm’s plans.
The focus of DSK Hyosung on Gujarat is pretty high as it aims to deliver sales of 100 units over a period of three months and has a clear plan in place for the same. At present, the company has two showrooms in Gujarat, one in Surat and the other in Ahmedabad. In order to change that, DSK Hyosung will be setting up extensions in four cities, reaching out to as many customers as possible in cities other than the above mentioned.
Hyosung produces pretty high quality bikes that are heftily priced, starting from INR 2.63 lakh (ex-showroom) and having a capacity of 250 cc. Shivpadad Ray, Chief Operating Officer and DSK Hyosung, spoke to Business Line about why Gujarat, where it sells around 210 – 220 bikes per annum is the epicentre of their focus.
“Gujarat is a rich state and we see increasing interest for superbikes among young customers. We have planned to open four extension centres across the state each at Rajkot, Vadodara, Navsari and Bharuch,” he said.
The official from DSK Hyosung also sees tremendous potential for superbikes in the Indian market due to the ever growing younger generation, which is rich, ambitions and willing to shell out money for quality products. At present, the superbike market is valued at 10000 units per annum but the coming months are sure to take that number to a higher level.
One benefit that DSK Hyosung has in terms of keeping prices of its bikes in check is that all the bike the firm produces are Completely Knocked Down (CKD) units that are assembled at a plant, which is situated in close proximity to Pune, Maharashtra.
Ray gave a clear indication about the fact that DSK Hyosung will not limit itself to superbikes only and shall be making an entry into a lower segment that produces 125 cc and 150 cc bikes, thereby automatically increasing market share by targeting a wider audience. The firm hopes to open a production facility in Karad, Maharashtra where these bikes will be manufactured. “It will bring down our cost by localisation. People will be able to possess DSK Hyosung brand at lesser price than what they pay now,” Ray said.
