UM Motorcycles aims 40,000 units sales in India; presently sells renegade Commando and renegade Sports S that have already received 4,000 orders
UM Motorcycles is targeting 40,000-units sales in Indian market by FY2018. Also, the two-wheeler manufacturer is aiming to sell 12,000-units in present fiscal. It has already registered orders for 4,000 units in Indian market since launch of the brand. The company is a joint venture between US-based UM International and Lohia Auto.
Presently the two-wheeler manufacturer sells renegade Commando and renegade Sports S in the country. In the cruiser segment the company aims to strengthen its hold and it targets Royal Enfield, which has been growing steadily for quite some time. To achieve its goal UM Motorcycles is spreading its dealership network across India, and it has already signed agreement with 50 dealers.
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Speaking about UM Motorcycles plan Mr. Ayush Lohia, Chief Executive Officer of Lohia Auto has said, 35 UM Motorcycles dealerships across India will be operational by the end of this festive season. With 20 dealerships already operational, the number will end up at 55 by the end of festive season. He also said, as there are not many players in cruiser segment in Indian motorcycle market, UM Motorcycles sees good opportunity of growth.
Presently, the company imports parts from different foreign markets and assemble them at its Kashipur plant in Uttarakhand. It manufactures Renegade Commando and Renegade Sports S in the country with around 40% – 50% localization. It aims to take the localization ratio by up to 60% – 70%, which will help it to keep pricing aggressively and therefore help the company to achieve its goal. It has already invested Rs. 50 crore to produce engines locally in India.
Also read: UM International Targets Royal Enfield, Bajaj With Range of Cruisers
Apart from selling products in Indian domestic market, UM Motorcycles is also mulling possibility of exporting motorcycles to ASEAN countries in near future, with first two countries being Nepal and Bangladesh. Apart from renegade Commando and Renegade Sports S, the two-wheeler manufacturer is also preparing to launch more affordable models in India in near future.
Source: ET Auto