JOIN US American bike major UM Motorcycles is hinting at opening a plant in Karnataka, or Maharashtra, in a bid to specifically cater to the demand emerging out of the South and West markets.
Talking to DH, UML Director Rajeev Mishra said, “We are in the process of conducting a feasability study on setting up yet another plant in India, which will, apart from strengthening our localisation game, will help cater to the growing demand in the South and West markets. We are looking at avenues in Karnataka, and Maharastra, for the same.”
UM Motorcycles, the Indian arm of Miami-based UM International in JV with Lohia Auto, already runs a facility at Kashipur, Uttarakhand, with an annual capacity of 50,000 units.
Mishra claimed that in the last two months, the company has seen over 4,300 bookings , and around 65% of sales volumes is expected from the South and West markets. “Karnataka, Andhra Pradesh and Tamil Nadu are big markets. The South alone contributes 35-40% to our volumes,” he said.
At present, UM Motorcycles retails two bikes in India — Renegade Commando (Rs 1.69 lakh) and Renegade Sport S (Rs 1.59 lakh — all prices ex-showroom Bengaluru), specially developed for the country.
India holds a 65% share of the global two-wheeler market, of which, around 78% is contributed by motorcycles. In terms of volume sales too, India sees around 1.2 million units sold each month. “We want to launch a model here every six months. While the Renegade Classic will hit the road in April, we’ll launch a 400-cc machine next October, post which, we’re contemplating getting into the 200-cc space as well. In two years, we’ll offer a plethora of 200-500 cc motorcycles. We are bullish on cruisers,” Mishra said.
In order to cater to the demand, besides the additional assembly line, the company is also banking on a strong localisation strategy. “Today, our products see localisation of about 60% (everything except engine and fuel tank). We are aiming at an additional 15-20% localisation over the next six months, and will eye 100% localisation by October, next year,” Mishra said.
Meanwhile, UM Motorcycles has opened its tenth showroom in India, when it inaugurated the 2,400-sq feet Bengaluru UM outlet here.