Instead of a setting up an all-new plant from scratch, Hyosung will now move into an existing facility with the assembly process to begin over the next 7-8 months.

2015 Hyosung GD250R
Hyosung will be introducing 3 new models in India this year with single-cylinder engines

Taking a slight detour in its plans for the future, Hyosung’s Indian partner DSK Motowheels has now decided to invest in an already constructed plant near Pune instead of building an all-new facility from scratch. Expanding its manufacturing base, the automaker was looking to move to a bigger assembly plant from its current facility in Wai, where it assembles Hyosung and Benelli motorcycles. With an existing plant at its disposal, the company will not only be able to quicken the assembly operations but will also save a bulk load of investment in the process.

DSK stated that the new plant will commence assembly operations in the next 7-8 months and will attract an investment of Rs. 95 crores. This plant will have an initial capacity to produce 5000 units per year. Out of the total investment, Rs. 75 crores have been allocated towards building construction while the rest is towards installation of machinery. This investment is just a fraction of the earlier Rs. 400 crores which were supposed to be put up by DSK for the new plant.

The new facility will come with heavy localization levels which will subsequently result in lowering the prices on Hyosung’s model range. The automaker is planning to launch three new products later this year which will include the GD250N and GD250R single-cylinder motorcycles while there is also a 300cc cruiser set to touch the Indian market. With the automaker aiming a healthy 80 percent localisation level, the company is optimistic that it will be able to bring the prices down to Rs. 1.75 lakhs on some of its models. That said, localising will commence only after 17-18 months, once the component suppliers are setup.

Hyosung GD250N Road Test
The localisation plans are only for the Hyosung & not for the  more premium Benelli brand

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