Daewoo Could Return To India

Posco Daewoo, the South Korean conglomerate renowned for its Cielo sedan and Matiz hatchback in India, is preparing to re-enter the Indian market, according to reports. This time, their comeback strategy centres around the sale of electric two-wheelers and e-cycles, leveraging India's robust economic growth and surging consumer demand. In a conversation with a media publication, Y. S. Choi, General Manager of Posco Daewoo South Korea, cited India as one of the world's most promising consumer markets, providing the impetus for their return.

In addition to electric two-wheelers, Posco Daewoo intends to introduce power and energy products, including solar and inverter batteries, along with a range of consumer electronics such as LED televisions, air purifiers, and refrigerators. To make the most of this opportunity, the company is partnering with Gurugram-based Kelwon Electronics and Appliances, a firm with extensive experience in manufacturing, marketing, and selling Daewoo products in India.

In the report, Choi highlights the significant potential in India's energy and power market, estimated to be worth over $100 billion, and the consumer electronics market, which presents a $20 billion opportunity. Posco Daewoo is particularly optimistic about the rapid growth of the Indian electric two-wheeler market, driven by substantial government investments in these sectors. Their leading position as a manufacturer of batteries and consumer durables positions them for long-term success in the Indian market.

Daewoo's initial foray into India began in 1995 with offerings like the Cielo, Nexia, and Matiz. However, in 2001, General Motors (GM) purchased most of the company's assets, resulting in the closure of Daewoo's India operations in 2003–2004. At present, the Daewoo Commercial Vehicles Division is with Tata Motors.

Their Indian partner, Kelwon, plans to begin by focusing on the energy and power segment, offering automotive batteries for two- and four-wheeler vehicles, solar batteries, inverter batteries, and lubricants. Once this segment is established, it will expand into other categories, including consumer electronics, in the next financial year.