UM International LLC in association with its Indian co-participant Lohia is planning to expand its capacity in India. Here, the firm has officially commenced its operations in September 2016 with two flagships the Renegade Commando and Renegade Sports S. Both the cruisers hit the Indian market at INR 1.6 lakh and has cumulatively sold around 7,000 motorcycles across the country. As per recent reports, UM international is now eyeing to sell near about 40,000 pieces by the fiscal end.
Reportedly, the American two-wheeler manufacturer is ready to spend a total amount of Rs 600-650 crore approx on further operations in India. As leaked estimation, it will invest half of the said amount on Uttarakhand facility expansion which is currently churning out 50,000 units every year. While the second half might be used for setting up a new or company’s second production facility in Hyderabad. Moreover, the company is also looking forward to attain 100 percent localization by April month next year. Currently, it is doing local assembling of product around 65 percent. With the 100 percent localization, the product prices will be affected at a big scale as it will priced 15-18 percent dearer than the existing asking price.
Moving ahead, reports also hints the UM Motorcycle might build up an engine development plant in Pune which is expected to start its operations by April 2018. An additional amount of Rs 129 crore is likely to be invested for this purpose. Recently, a positive sales graph has also been observed in the brand’s premium bike segment. And, as per the country’s two-wheeler market statistics, the cruiser bike segment only share 7 percent of the motorcycle market and has been growing with a rapid rate of 42 percent annually. These figures shows why UM Motorcycle is interested in investing that sorts of heavy amount on improving its infrastructure in the country. In the coming future, it could turned out as a trump card for the automaker.