UM Motorcycles to announce Indian joint venture tomorrow

UM Motorcycles India has revealed, through a press invite, about the announcement of its joint venture tomorrow, in New Delhi. This is the first major announcement after its debut at the 2014 Auto Expo earlier this year.

Few months ago we had reported about UM Motorcycles talking to two companies in the NCR region and looks like one has gone through. There were rumours about one of them being DSK MotoWheels – the company that sells Hyosung motorcycles in India. This new joint venture is rumoured to invest Rs 100 crore over a period of time to do business in India. UM Motorcycles India plan to have around 25 dealerships spread across 15 major cities initially.

UM Motorcycles is expected to start with a production capacity of up to 5,000 units a month, taking it to 15,000 a month in three years, where 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.

Stay tuned to BikeWale as we get you more details on this joint venture tomorrow.