According to AutoCarIndia, the Garware Motors is selling its share in Korean bike-maker Hyosung JV (joint venture). They have decided to give their share to DSK (D S Kulkarni developers), which are a leading real estatate developing firm from Pune. DSK is also famous because of their Toyota dealership in Pune which was one of the largest dealerships of India. Coming back to Garware Motors, they have 18 dealership centres across India at present.
There are speculations about what could have caused Garware Motors to sell its share in Hyosung’s India’s operations. The major reasons that are being cited are that maybe DSK provided Garware Motors with a very attractive offer and they were tempted to take it up or probably Garware Motors might have given up on its plans of making any more investments in Hyosung.
Recently, the Supreme Court banned the use of Sun films which has closed the Rs. 150 crore Sun film sector and Garware Motors was one of the major players in the Sun film industry. May be shutting down of this industry could have forced the company to be more circumspect with their investment plans. Although an official confirmation from Hyosung is still to come in, this latest partnership in the Indian two-wheeler market is confirmed.
We all know, this is not a right time for Garware Motors to step-back because they have already scheduled to launch the Hyosung GT250R very shortly and on the other hand bike enthusiast are eagerly waiting for the baby Hyosung. The changes in the management can have an effect on the company and may result in delay of their products. Currently, Hyosung sells the ST7, GT650R and GT650N models in India.
Apart from this, the company has further plans to launch the GV650 in somewhere around the end-2012. Also GV250 is expected to be launched sometime in 2013. Now it needs to be seen whether DSK manages Hyosung and Garware well enough or it suffers a similar fate as that of Kinetic. We have to wait and watch.
Source – AutoCarIndia