UM Motorcycles has confirmed the launch of its first set of bikes this October. It will start selling the Renegade series of bikes from October priced between Rs 1 lakh and Rs 1.5 lakh giving direct competitions to brands like the Royal Enfield and KTM.
The company is currently in talks with two companies from the NCR region, one of which will be finalised as a local joint venture. This new partner will set up an assembly plant and both the parties will invest Rs 100 crore over a period of time. The company plans to have about 25 dealers spread across 15 major cities initially, with the appointments beginning from July onwards.
UM Motorcycles will start with a production capacity of up to 5,000 units a month, taking it to 15,000 a month in three years, when it aims to export a third of the production to south-east Asia. After the launch of the Renegade series, the company will launch more 300cc and 400cc premium bikes that are expected to be priced at Rs 2 lakh. Initially, the bikes will be imported through the completely-knocked-down (CKD) route but the company is aiming for 40-50 per cent localisation to keep costs in check. The company also plans to enter the mass market brand in the next few years. UM Motorcycles has already set up a research and development centre in Delhi, which is currently developing two all-new engines for the Indian market, including a 350-cc, water-cooled V-twin engine – a first in the market.
“We want to create our own niche. In India, there is space in the cruiser segment where you only have Royal Enfield today. The Harley and Triumph models are too expensive. This segment of bikes, priced over Rs 1 lakh, is growing at 45 per cent and is currently at two lakh units a year. We expect this to touch four lakh units in five years, with our company having a 10 per cent share,” said Rajeev Mishra, director, UM India.
Source: FE
