[singlepic id=12185 w=540 h=375 float=center]
This news might come as a shock to Hyosung fans. Our friendly scoop masters from Autocar India report that Garware Motors is in advanced stages to sell its stake in the Hyosung Joint Venture. Garware Motors is selling its stake to DSK (DS Kulkarni), which are one of the prominent real estate developers in Pune. Pune residents will also remember DSK from their Toyota dealership, which is apparently one of the biggest in the country. This will foray DSK in the Indian two-wheeler market. Garware Motors currently has 18 dealerships across the country.
The reason for Garware Motors selling its stake in Hyosung’s Indian operations could be various. But we feel either one of these could be true. One reason could be that DSK made an offer which was too tempting to turn down. While the other reason could be that Garware Motors did not want to invest into Hyosung any further. The recent SC ban on sun films has shut down the Rs. 150 crore sun film industry. Garware was one of the prominent players in the sun film space and this might have triggered them to go cautious with their investments.
The exit of Garware Motors from Hyosung comes at a very wrong time. The company is getting ready to launch the Hyosung GT250R in the next couple of weeks and management changes can affect the company. Currently the GT650R, GT650N and ST7 motorcycles are Hyosung offerings in India. There are plans of bringing in the GV650 later this year, while GV250 is scheduled to arrive sometime in 2013. Will DSK be able to handle Hyosung as well as Garware or will they do what Kinetic did? Its something only time can tell us.
[singlepic id=12206 w=540 h=375 float=center]
Source – Autocar India