UM Lohia Two Wheelers Pvt. Ltd., the Indian arm of the American motorcycle maker UM International, is planning to set up a manufacturing unit to make cruiser motorcycles in India.
“Currently, we are producing four cruiser bikes at Kashipur in Uttarakhand,” said Ayush Lokhia, director, UM Lohia Two Wheelers. “We are planning to set up one more unit either in the South or in the West.”
UM Lohia Two Wheelers has started discussions with its American parent counterpart. It might take 18 months for the new unit to come into operation. A decision about the plant’s exact location, investment and the partner’s equity participation will be taken in the next six months, he said.
Mr. Lohia said the Kashipur plant has a capacity to produce one lakh units of two wheelers and three wheelers and will reach full production capacity by March 2019. The new plant along with R&D facility would require an investment of almost ₹100 crore.
New bikes
Announcing the roll out of two bikes — Renegade Commando Mojave and Renegade Commando Classic in Chennai — Mr. Lokhia said: “From September 2016-August 2017, we sold 10,000 cruiser bikes in India. This fiscal, we hope to sell 25,000 to 28,000 bikes. Next year, about 50,000 to 60,000 bikes. It would be doubled the next year.”
Asked about the local content, Jose Villegas, director, UM India Two Wheelers Pvt Ltd., said that it presently stood at 40%. It would be raised to 70% this fiscal and 100% in 18 months.
Mr. Lohia said, going forward, they would start making second-level components, fenders and engines in India.
“From India, we are exporting these bikes to Nepal and Bhutan. We will start exporting bikes to Europe next year. We are in the process of developing anti-lock braking system. It is in the final stages of validation,” said Mr. Villegas.
