| Kinetic joint managing director Sulajja Firodia Motwani in Calcutta on Wednesday. Picture by Kishor Roy Chowdhury
Calcutta, Aug. 13: Kinetic Engineering’s Korean technological partner, Hyosung Motorcycles, has decided to source premium range motorcycles from its Indian ally.
Confirming the development, Kinetic Engineering’s joint managing director Sulajja Firodia Motwani today said the Korean company had asked for around 10,000 units in the current financial year. This comprises 10 per cent of the company’s sales target of 1 lakh motorcycles.
Kinetic has recently invested around Rs 100 crore to ramp up its motorcycle capacity.
“We are strengthening ties with the Korean company, which plans to source more motorcycles in the future,” she said.
Asked whether Hyosung was keen on having a stake in Kinetic Engineering, Motwani said no such proposal had so far come from any side. The current terms of reference between the two companies are based on royalty against the transfer of technology.
“If they are interested (in equity), we will be keen on considering such a proposal which will benefit both the companies,” she said.
Incidentally, Kinetic Engineering’s collaboration with Honda Motor Company of Japan expires on December 30 this year and both the companies are not interested in renewing the agreement.
Although the company will continue to manufacture Kinetic scooters, it is focusing on its new model Nova for domestic sale and exports.
Motwani said the company is now focussed on the motorcycle segment, which had a phenomenal growth last year.
Launching four models here today, Motwani said the company planned to sell around 1.8 lakh motorcycles in the next financial year and half a million in the next three years.
The company has set up a new manufacturing unit near Pune. It has also modified its moped manufacturing plant at Ahmednagar for motorcycles.