U.S.-based UM Motorcycles and Lohia Auto on Friday announced a joint venture firm to roll out a new range of motorcycles for the Indian market.
The partners plan to invest Rs.120 crore in the JV firm initially, UML. UML, which is expected to start production by the second quarter of 2015, would utilise Lohia Auto’s Kashipur manufacturing facility in Uttarakhand which has a capacity to produce one lakh units, to come out with the new products. “We are looking at India with a long-term perspective, with a vision to not only cater to domestic need but to also export to different parts of the world,” UM International Director Juan Villegas told reporters here.
The joint venture firm would begin with manufacturing cruisers and follow it up with other products.
Lohia Auto Director Ayush Lohia said, the CEO and CFO for the new venture would be appointed in 2-3 months.
