Daewoo Returns to India: Not with Cars, but Electronics & E-bikes

Korean automaker Daewoo, once a popular brand in India for models like Matiz and Cielo, is making a comeback after over 15 years. But this time, it won't be launching any cars.

Daewoo has entered into a 10-year brand licensing agreement with Gurugram-based Kelwon Electronics & Appliances. Kelwon will manufacture and sell Daewoo branded products in India, starting with power and energy products, followed by consumer electronics and e-bikes.

Kelwon is led by industry veteran H.S. Bhatia, who has previously worked with LG and Airtel in India. He revealed plans to invest around Rs 300 crore over the next three years under this partnership. The funds will go towards marketing, R&D, developing products and setting up sales and service networks across the country.

Initially, Kelwon will get Daewoo products manufactured locally through OEMs with technical support from the Korean brand. As sales volumes pick up, it may also look at setting up its manufacturing facilities.

Under the twin brand strategy, premium and mid-premium products will be sold under Daewoo, while Kelwon will continue to cater to the mass and mid-premium segments. The product portfolio will include air purifiers, LED TVs, speakers, water purifiers, smart home appliances and more.

Chan Ryu, director of Daewoo India Operations said,"In the initial stage, we will introduce a range of power and energy products, which would include batteries for both four-wheelers and two-wheelers, as well as inverter and solar batteries. Additionally, we will offer a variety of inverters and UPS systems, designed for both online and offline applications."

Daewoo had to exit India after its parent company in South Korea went bankrupt in 1999. Steelmaker POSCO Group now owns the brand. POSCO Daewoo India Operations Director Chan Ryu said the rapid growth of the Indian market prompted their re-entry.

Daewoo currently sells products in the US, Europe, China, the Middle East and UAE. With the consumer durables market projected to reach $21.18 billion by 2025, Daewoo aims to compete with established players like Samsung, LG, Panasonic and more.