UM Motorcycles plan to increase its production capacity to 1 lakh per year from current 50,000 units per annum
American motorcycle manufacturer UM is planning to set up a new production plant in India in order to ramp up its production volume to at least 1 lakh units per annum from current 50,000 units. The new production facility is expected to be built near Hyderabad and it would be able to roll out 1 lakh units of motorcycles yearly.
Apart from the new production facility, UM Motorcycles is also working on an engine manufacturing plant near Pune. This plant will be able to produce 1 lakh engines every year. This way, with increased localised production UM Motorcycles will be able to keep the pricing of its products lower and competitive. The brand currently builds products with 65% localisation and it wants to take that up to 90% in next few months. It will reduce the pricing of UM motorcycles by 18%.
UM Motorcycles already eyes to challenge the Bajaj Avenger series and Royal Enfield as well and with the new production plant and engine manufacturing facility, the American brand will be able to reach its target. Apart from the new production plant and engine manufacturing facility, UM is also working to increase its dealership network across the country to cater more buyers.
UM sells its motorcycles in India under its joint venture with the Lohia Auto. The two plants will see a combined investment of $100 million and half of that has been invested already. Currently, UM sells two models in the country that are the UM Renegade Commando and Renegade Sports S. It is planning to launch an adventure tourer in 2018 that will be powered by a 400 cc V-Twin engine.
The engine for both the renegade Commando and Renegade Sports S will be built in the country once the engine manufacturing facility in Pune commence production. Both the motorcycles are powered by 279.5 cc single-cylinder engine paired with a 6-speed transmission. The engine is capable of churning out 24.8 hp of peak power and 23 Nm of peak torque.
UM Motorcycles in India – Gallery
Source: Business Standard