Chinese motorcycle brand CFMoto is planning to set up a new plant in the Indian market. While the two-wheeler manufacturer is yet to disclose the location of the new facility, it has shortlisted Bengaluru and Pune as the possible places for the plant. CFMoto plans to push out its all-terrain vehicles and 150 cc motorcycles from the new plant. The company is also giving top priority to ensure a healthy vendor network for improved localisation levels and competitive prices. CFMoto aims to increase the localisation levels to 50% by 2021.
The company also plans to export vehicles to Nepal. CFMoto is also considering exports to Africa. The source report further adds that the ASEAN region will not be part of the export plan. CFMoto caters to countries like Thailand, Singapore and Malaysia through China. Speaking to The Hindu Business Line, Vamsi Krishna Jagini, CEO of Anvita AutoTech Works, said:
We are planning to export bikes to Nepal and are in discussions right now. Once production begins, we will look at Africa based on talks with CFMoto.
The manufacturing plant and exports, however, are part of a relatively long term strategy. In the short term, CFMoto reportedly plans to expand its product portfolio with the launch of new products in 2020. Jagini confirmed in an interview in November this year that the Indian market will receive the 300SR, 400NK, 400GT and the 700CL-X post the BS-VI upgrade. The company reportedly plans to introduce a new model every quarter after the BS-VI upgrade.
The launch of the new products should be preceded by the BS-VI upgrade of the company’s existing portfolio. Regular followers would know that CFMoto currently offers four motorcycles in the Indian market. The existing portfolio comprises the 300NK, 650NK, 650MT and the 650GT. The motorcycles, which are currently available at competitive tags, could witness a sharp increase in prices post the BS-VI upgrade. Do note that the 300NK, 650NK and the 650MT were launched at a special introductory price tag.
In China, CFMoto is set to inaugurate a new JV plant with KTM. The new manufacturing facility, located in Hangzhou, will have an annual production capacity of 50,000 units. The capacity will be expandable to 1,00,000 units.
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