DSK Motowheels has postponed its plans of developing a new plant at Greenfield as of now. Earlier, the company was planning to produce its few models at the said facility. Sources close to the development process have revealed that the auto maker has rather made its mind to start the operations at the Brownfield unit in Pune. DSK Motowheels seems in a full swing to expand its production capacity. Presently, the company can assemble 25 bikes/shift every day from its Wai facility.
However, the demand for its bikes has increased significantly and thus it is getting really tough for the company to meet the orders on time. Reportedly, DSK Motowheels will be investing a sum of Rs. 95 crore at its new plant, which is expected to have a capacity of 5,000 bikes per year. In Rs. 95 crore, around Rs. 75 crore will be employed in the development of building, while Rs. 20 crore will be invested in the installation of machinery. It must be noted that this investment is far less than what DSK Motowheels was earlier planning to spend at Greenfield setup ranging to Rs. 400 crore.
It was also reported that the company is looking forward to increase the localization in the Indian market in order to bring down the prices of its models in the local market. In the span of next one and half years, the company is also planning to localize its components by around 80 per cent, which will help it in expanding its network among the Indian buyers. Industry experts are of a view that from Hyosung line up, India can expect three motorcycles - two 250 cc motorcycles and a 300 cc cruiser bike, however nothing is confirmed as of now.
