Benelli maker DSK Motowheels to ramp up production 10-fold by end-2017
Mumbai: DSK Motowheels, a firm that assembles and sells motorcycles of Hyosung and Benelli brands in India, plans to ramp up production at its facility almost 10 times in a bid to tap into the fast growing segment, said a top executive.
DSK plans to increase its capacity ten-fold to 100,000 units by the end of the year as Benelli is planning to introduce new models, chairman Shirish Kulkarni said on Tuesday.
Apart from the Benelli 302R, which was launched with a price tag of Rs3.48 lakh on Tuesday, Benelli plans to introduce at least three more models in India this year, he said. The Pune-based company plans to invest Rs40 crore in building this capacity.
India sold a total of 23,000 super bikes in 2016, according to Emerging Market Automotive Advisors (EMMAAA), an automotive research and advisory firm. Though on a small base, superbike sales in the country is growing at an exponential rate at a time when sales in the broader two-wheeler market has been down. This premium market is expected to touch 90,000 units by end of 2017 and 135,000 units in 2018.
Among others, Bajaj Auto Ltd, that has been stepping up presence in the premium end of the market, in its attempts to have a bigger play in the segment.
Addressing shareholders at Bajaj Auto’s 10th annual general meeting on 20 January, MD Rajiv Bajaj said the company is very close to “finalizing a very promising alliance”. Bajaj, without sharing the specifics, explained the logic of adding another brand.
Bajaj’s statement comes amid reports of Volkswagen Group’s Ducati being up for sale.