Reports are rife that UM Motorcycle is contemplating setting-up a manufacturing unit in India. The production facility will be utilised for manufacturing engines and will require a hefty investment of Rs 162.25 crore. The Director of UM International LLC, Juan Villegas has reportedly informed media about company’s plans to build an engine manufacturing unit in India.
It is said that the new facility could be set up around Hyderabad and could be operational by early 2019. Furthermore, the upcoming plant will have an estimated annual capacity of 50,000 units. With the new facility in Hyderabad, UM Motorcycles will have two production units in India, including the current facility at Kashipur, Uttarakhand, which also has a production capacity of 50,000 units. The Kashipur unit currently employs 500 people and with the new plant, this figure will reportedly increase to 1200.
Interestingly, the new engine manufacturing plant will aide heavy localisation, which will eventually help curbing price, hence making UM Motorcycles more affordable for the Indian customers. That said, the company is planning to achieve 100 per cent localisation opposed to the current 50 per cent. As a result, it would help UM Motorcycles achieve 30 per cent annual growth in India, leading to a larger contribution from the Indian market towards its global sales. As a matter of fact, India’s contribution in UM Motorcycle’s global sales is around 7 per cent, which it plans to increase to 25 per cent.
The company currently offers a host of bikes in India including four cruiser models from its Renegade series including Commando, Commando Classic, Commando Mojave and Sports S. UM made inroads into the Indian market in September 2014 under a joint venture with Lohia Auto Industries, ‘UM Lohia Two Wheelers Pvt. Ltd’. Before entering the Indian market, the bikemaker previewed its products at the 2014 Auto Expo.