Daewoo to make a comeback in India; to roll out e-bikes, e-cycles, power & energy products

Daewoo to re-enter India with electric motorcycles and e-cycles

Daewoo, a brand famous for selling cars such as Matiz and Cielo in India, is gearing up for a grand return to the country with a range of power and energy products. However, unlike earlier, the South Korean brand will be focussing on energy, power, electronics, and electric vehicle (EV) sectors in its second innings in India.

To further its objective, Daewoo has formed a strategic partnership with Kelwon Electronics and Appliances Pvt Ltd, based in Gurugram.

To begin with, Kelwon will be selling Daewoo-branded power and energy products for electric cars and two-wheelers. It also plans to capitalise on the expanding market for electric vehicles in the two-wheeler segment, such as electric bikes, electric scooters, and e-cycles.

Chan Ryu, Director with Kelwon Electronics to spearhead Daewoo India Operations, emphasised India's emergence as a global manufacturing hub and Daewoo's intent to seize this opportunity by collaborating with an Indian partner in the manufacturing, marketing, and sales of Daewoo products in India.

"We have exciting plans to unveil a captivating line of e-bikes and e-cycles in the Indian market. The market is still at a nascent stage, and we aim to attain a significant market share in the next three years. I am hoping that at least one in 10 e-bikes sold in the country will be from Daewoo.”

H. S. Bhatia, Managing Director of Kelwon Electronics & Appliances Pvt Ltd, said, “Daewoo products will be made in India as we will get associated with local manufacturing providers for this partnership.” However, he clarified that the assembly operations of all product lines will be outsourced to a contract manufacturer.

When asked about the investment plans, he said, “Being the manufacturing and marketing partner, we will be provided with the brand guidelines, technology transfer, and other innovations by Daewoo. The entire investment will be made by my company. We are planning to put in over Rs 300 crore towards business expansion, marketing, product development, R&D, etc., over a period of three years.”

However, he clarified, “We are not getting into automobiles per se and the only two products connected to this sector are e-bikes and (storage) batteries which are used in two-wheelers and four-wheelers. Obviously, we will invoke the legacy of the Daewoo brand of the past, but we will be confining ourselves to batteries.”

Daewoo also plans to launch consumer electronics like LED TV sets and audio speakers.

It may be recalled that Daewoo’s initial foray into the Indian market dates back to 1995 when they introduced the Cielo, followed by Nexia and Matiz. Eventually, the company’s assets were acquired by General Motors in 2001, barring its Indian subsidiary, leading to its closure in 2003-04. Subsequently, Daewoo was taken over by Posco.