American two-wheeler manufacturer UM Motorcycles made its India debut at the 2014 Auto Expo showcasing its entire product lineup and the company is now planning to make its Indian launch in October this year. Even before making its Indian foray in the country, UM has already setup a research and development centre in Delhi. The company’s new R&D centre is currently developing two all-new engines with the first one being a 350cc, water-cooled, V-Twin engine for the Indian market that will be primarily rivalling Royal Enfield motorcycles in the segment.
UM Motorcycles which started in 2000 is relatively a new player in the global two-wheeler market and has a sales network in 45 countries and plants in China, Venezuela and Angola. The company plans to launch a series of bikes ranging from 100cc to 400cc in India. UM’s first launch will be the Renegade series of cruiser bikes that was showcased at the Expo earlier this year. The Renegade series comprises of two models including the 230cc Renegade Commando and the 200cc Renegade Sport which will be priced around Rs. 1.5 lakhs in the market.
UM is currently in talks with two companies, one of which will be finalised as the local joint venture partner later this month. The American company will invest Rs. 100 crores in the assembly plant that will be setup with UM’s Indian partner and will have about 25 dealerships setup across 15 major cities in the country from July onwards. UM’s entry will be in the mass cruiser segment, where Royal Enfield is a major player currently. The segment is currently growing at 45 percent with two lakh units per year and is expected to touch the 4 lakh mark in the next five years. On the outset, UM’s production capacity will be limited to 5000 units a month and will expand to 15,000 units per month in the next three years.
Initially, UM motorcycles will be brought down via CKD kits in order to keep the costs low of its products. The company will later enter the mass 100-125cc segments competing against established players like Hero, Honda and Bajaj in the segment. UM currently sells mass commuter bikes largely in Africa and South America, whereas the Indian operations will commence after two-three years in the country, once the brand has developed a strong portfolio and identity in the Indian market.
