Demak Motor to Enter Indian Market By End Of The Year

Malaysian firm Demak Motorcycles is planning to enter the Indian two-wheeler market by the end of this year.

Demak participated for the first time in an Indian auto fair and is looking to bring in its scooters and motorcycles.

“Globally, we have our range of scooters, e-bikes, motorcycles, mopeds and three-wheeler good carriers in the market. But in India, we are looking at launching scooters and motorcycles,” Jason Lee Tse Ta, international marketing in-charge of Demak Motorcycles, told The Telegraph.

Around 80 lakh two-wheelers are sold in India every year, of which 60 per cent are motorcycles.

“We are looking for some partners here…distributors or dealers. If all goes well, we should have our products here by the end of the year. The enquiries both from customers and dealers have been very encouraging,” he said.

Demak’s portfolio comprises motorcycles, powered by 250cc, 150cc and 125cc engines, a 110cc moped and 90cc and 50cc scooters.

The company, which has two manufacturing facilities in Malaysia and one each in the Philippines and Indonesia, is aggressively looking to grow in Asia.

It will set up another facility in Sri Lanka.

However, Demak is unsure about a facility in India.

“We are not very sure of setting up a manufacturing base here. There are a lot of things we will have to take under consideration. So to begin with, we will test waters by getting some dealers here,” said Lee Tse Ta.

Refusing to divulge details, he said two dealers, who sell Yamaha and Hero Honda’s vehicles, had already approached them.

Two-wheeler sales in December surged 66.60 per cent to 7,67,796 units from 4,60,852 units in the corresponding month in 2008.

Motorcycle sales rose 76.70 per cent to 5,92,596 units in the month from 3,35,370 units in December 2008. Sales in the scooter segment jumped 41.39 per cent to 1,27,597 units against 90,247 units a year ago, according to data available with the Society of Indian Automobile Manufacturers.

Originally appeared on: telegraphindia

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Demak To Roll Out Four New Models Yearly

Demak, the Malaysian brand motorcycle, will roll out up to four new models in the scooter and motorcycle range, with 150cc engine capacity and below, into the market every year from next year.

Demak manufacturer, DNC Asiatic Holdings Sdn Bhd (DNC), executive director Hu Ying said Demak planned to introduce new models which offer low fuel consumption and higher value for money in the wake of rapid rising oil prices.

"There is increasing awareness on fuel-efficient scooters and motorcycles. We will launch new models with 150 engine capacity and below at a pace of three to four models every year for both 2009 and 2010 onwards.

"The new models include two moped or cub models, one scooter model and one sporty model starting next year. Normally, we will launch new models in the first quarter," she told Bernama in an interview.

With the soaring global oil prices, Hu said Demak, a joint-venture company with Malaysian and Chinese interests, had recorded sales increase of up to 30 percent due to a surge in demand for motorcycles.

"The sales are up as fuel prices go up. The main reason is fuel efficiency. In view of uncertainties in global oil prices, we are projecting 60,000 units for next year, including for both local and export sales," she said.

via Bernama

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