UM plans to expand its production capacity in India

UM Lohia Two-Wheelers (UMLTPL), the Indian arm of American two-wheeler maker UM International LLC has revealed its plans to expand its capacity in India. The company started operations in India in September 2016 with the Renegade Commando and Renegade Sports which are priced at around Rs 1.6 lakh. And the bike maker has already sold about 7,000 units of both bikes in the country. Reports indicate that UM International now aims at selling around 40,000 units by the end of this fiscal year.

The American motorcycle maker has reportedly laid out a total investment plan of Rs 600-650 crore approximately for its India operations. Half of this amount will be used for expansion of their Uttarakhand facility from its current capacity of 50,000 units per year, while the other half might be used for setting up a second facility in Hyderabad. Moreover, the company also aims to achieve 100 per cent localisation by April 2018 from the current 65 per cent localisation. Higher localisation will mean that UM bikes might get cheaper by 15-18 per cent.

Moving forward, reports indicate that UM Motorcycle is also considering setting up an engine plant in Pune which might be operational by April 2018. The company plans to invest an additional Rs 129 crore for this purpose. Lately, the premium bike segment in the country has been witnessing a positive growth trajectory. Statistics reveal that although cruiser segment bikes currently account for only seven per cent of the motorcycle market, the segment has been growing at an impressive 42 per cent annually. This also explains why UM Motorcycle is considering investing heavily on expanding its infrastructure in the country. It might prove useful in the long run.