Kymco To Enter India By 2021

Kwang Yang Motor Co. or Kymco is the fifth largest scooter manufacturer in the world and the largest in Taiwan with major presence in European countries and the United States of America. In fact, the Taiwanese scooter giants produce scooters for Kawasaki and BMW the world over. But yet the name is relatively unheard of in India which will pose a challenge for the manufacturer as they are planning to sell their first product in India by 2021. The company mainly produces Maxi scooters with the AK 550 being its flagship product. The company also unveiled the new Ionex electric mobility solution at the Tokyo motorcycle show just 3-4 days ago.

But what exactly are the company’s plans for India? Where will the company position itself in the Indian market and what products can we expect? We got into a conversation with Alan K, the young Chairman of Kymco in Taiwan to find out.

What are Kymco’s plans for India?
Ko: For us, it is important to find a good entrance strategy. Of course, if we can find a great partner, that’s the best. But as you know, in India, the consensus or the endless fear is that a joint venture is not a good idea. (Pauses) Because of a history of failed JVs in India. (Laughs)

But you are open to partnerships with Indian manufacturers?
Ko: We are always open to partnerships. In fact, the priority is to find a partner. I think India has one of the most aggressive governments that is pushing for electrification of vehicles. So, I think it will open up new opportunities for us. I hope so. But no matter what, we will enter India. Hopefully, in the next few years.

Any timeline for Indian entry?
Ko: India will be one of 20 countries where we intend to sell Kymco electric scooters. We hope we can launch the first product by 2021.

Get latest updates on
the automobile community

Login Now

What kind of products are you likely to introduce?
Ko: You see, Kymco is not a volume-chaser. But I think we do have our unique advantage. We are very good at making scooters, especially now since we have a clear advantage in the maxi-scooter segment. So an electric scooter along with a maxi-scooter could be the ideal first products for us since we looking for a more premium positioning. If you need to sell scooters in India, a CBU is not probably the best idea. Of course, we have a manufacturing facility in Taiwan, being Kymco’s headquarters. Then we have a factory in China and Vietnam, both of which will cater to the global market. The ideal situation is we set up a third one in India as it has the right infrastructure and suppliers. Right now, the Middle East and West Asia are our weakness and setting up a plant in India can help a lot.

Will Kymco be setting up its own assembly/manufacturing plant or use a partner’s facility?
Ko: We haven’t decided that yet. It depends on what kind of partner we find and then how we can come up with a feasible plan. But at Kymco, the key is we always try to win. It’s in our DNA, it’s in our culture.

So will the first product be manufactured in India or assembled using CKD kits?
Ko: We haven’t decided that yet. It depends on the plan and finding out what is feasible and what is not.

Will the maxi-scooter be an India-specific product or a global one?
Ko: Firstly, it will be a global product because if you are going to develop a product specifically for India, it is going to take a while.

So will it be optimised for India?
Ko: Yes. This is why we are looking for a local partner because they will be able to help us on that. We don’t want to jump into the market and say we are investing so and so amount of money. That is not our style. We need to find a local partner who we learn to trust with time. We have a good communication channel with all the major players in India

Considering the e-scooter market is small in India, have you done any market research to see if it is feasible?
Ko: We have an organisation looking into it. But currently, we haven’t started any studies or research.

Are you aware of the cost of top-selling scooters in India, the Honda Activa?
Ko: Yes, I think we know

Can you give us an idea, how much more expensive will the maxi scooter be compared to the Activa?
Ko: That is too specific (laughs) and too soon to answer that.

Have you allocated any budgets for your India operations yet?
Ko: No nothing yet, but we have very strong intention to do so in the future. I think we will start small and build our brand first. You can’t go all out from the beginning. We need to form a viable business strategy first

Kymco is a big brand in Europe and Asia, but not so much in India. So how are you going to build the brand for our market?
Ko: First, Indian market is a very tough market. So we will take out time and chalk out the right strategy. We are not going to have overly optimistic expectations.

Are you looking at selling motorcycles in India too?
Ko: We do have plans to enter the global motorcycle market. But if you look at the global market, scooters sell more than motorcycles. It happens everywhere and the market is continuing to grow. Plus scooters are our main strengths and will continue to remain our top priority.

ZigSays
Despite the company’s intention to sell its first product in India by 2021, there is no concrete plan in place by Kymco to enter the Indian market. Even if there is, chairman Alan Ko clearly refused to divulge any specific information on the subject. One thing is clear though, when the company does enter India, it will be placed as a maker of maxi and electric scooters. Plus, the company intends to setup a plant in India as well so as to expand its export operations as the material and labour costs in Taiwan are quite high. So it would be safe to say that Kymco will enter the Indian market, but when remains elusive. Also, will Kymco spark the Maxi scooter segment in India that seems to have eluded us till now, or will it be too late to the party? We will just have to wait and see.