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MUMBAI, 27 October 2023: Daewoo, a name familiar to many for its cars like Matiz and Cielo in India, is set to make a triumphant return to the country. However, this time around, the South Korean conglomerate is shifting its focus towards energy, power, electronics, and electric vehicles (EVs) in its second innings on Indian soil.
In a strategic move, Daewoo has partnered with Kelwon Electronics and Appliances Pvt Ltd, headquartered in Gurugram, to lead its charge into India’s dynamic power and EV sectors.
A Strategic Partnership for Progress
Daewoo’s resurgence in India is propelled by its strategic alliance with Kelwon Electronics. The partnership aims to bring Daewoo-branded power and energy products to the Indian market, catering to both electric cars and two-wheelers. This initiative is well-timed, given the surging demand for electric vehicles in the two-wheeler segment, encompassing electric bikes, scooters, and e-cycles.
A Vision for India
Chan Ryu, Director of Kelwon Electronics, who is spearheading Daewoo India Operations, emphasized the significance of India as a global manufacturing hub. Daewoo is eager to capitalize on this opportunity by collaborating with an Indian partner for the manufacturing, marketing, and sales of its products within India.
The plan includes introducing a captivating line of e-bikes and e-cycles into the Indian market. Recognizing that the electric vehicle market is still in its infancy, the team aspires to secure a substantial market share within the next three years. Chan Ryu envisions Daewoo playing a significant role in the Indian e-bike segment, with the goal that one in ten e-bikes sold in India will bear the Daewoo name.
Local Manufacturing and Investment
H S Bhatia, Managing Director of Kelwon Electronics & Appliances Pvt Ltd, disclosed that Daewoo’s products would be manufactured in India, with the partnership extending to local manufacturing providers. However, it’s important to note that the assembly operations for all product lines will be outsourced to a contract manufacturer.
Regarding investment, Bhatia clarified that Daewoo would provide brand guidelines, technology transfer, and innovations, while his company would handle the entire investment. They plan to inject over INR 300 crore into business expansion, covering aspects like marketing, product development, research and development, and more over the course of three years.
Staying True to Daewoo’s Legacy
It’s worth noting that Daewoo’s return to India is not centered around traditional automobiles. Instead, the brand is confining itself to the realm of batteries. Specifically, they plan to focus on e-bikes and (storage) batteries used in two-wheelers and four-wheelers. While invoking the legacy of the past, Daewoo aims to be a key player in the battery sector.
Diversifying Offerings
In addition to e-bikes and batteries, Daewoo has plans to diversify its product range. Their portfolio will include consumer electronics, such as LED TV sets and audio speakers, adding to the brand’s presence and impact in India.
A Nostalgic Journey
Daewoo’s initial venture into the Indian market dates back to 1995 when they introduced cars like Cielo, Nexia, and Matiz. Eventually, General Motors acquired the company’s assets in 2001, except for its Indian subsidiary, which continued operating until its closure in 2003-04. Subsequently, Daewoo came under the ownership of Posco.
Conclusion
Daewoo’s return to India signifies a new chapter in the brand’s history in the country. With a fresh focus on energy, power, and electric mobility, Daewoo, in partnership with Kelwon Electronics, is poised to make a significant impact in India’s burgeoning e-bike and battery market. As the electric vehicle sector gains momentum, Daewoo’s legacy and expertise promise to play a pivotal role in shaping India’s sustainable and electrifying future.
