UM Motorcycle to invest Rs. 162.25 crore in India

Juan Villegas, Director UM International LLC has told the media that the company is planning to setup an engine manufacturing unit in India with an investment of Rs. 162.25 crore. 

The new engine plant is likely to come up around Hyderabad. It is expected to be operational by early-2019 and will have an annual capacity of 50,000 units. The US-based bike maker currently has an assembly unit at Kashipur in Uttarakhand, which has a production capacity of 50,000 motorcycles. It currently employs 500 people. This figure is expected to rise to 1,200, once the new plant comes online. 

The bike maker is also aiming to increase the level of localization in its products from the current 50% to 100%. The company hopes to achieve 30% growth per annum and increase India's share in its global sales from the current 7% to 25%.

UM currently offers four cruiser bikes from its Renegade series in India. These include the Commando, Commando Classic, Commando Mohave and Sports S. The bikes are priced in the range of Rs. 1.60 - 1.95 lakh (ex-showroom, Delhi).

UM International LLC first showcased its products at the 2014 Auto Expo. In September 2014, UM Lohia Two Wheelers Pvt. Ltd. - a joint venture company with Lohia Auto Industries was formed. 

Source: The Economic Times