UM planning engine manufacturing facility in India - Report

Praveen M

Praveen M, Engineer-turned-motorcycle journalist. I'm a sucker for cruising down the highways, and twisties in the hills.

Juan Villegas, Director UM International LLC told in an interview with ET Auto that the brand is planning to invest USD 25 million to build an engine manufacturing plant in the country.

UM Renegade Thor right side at 2018 Auto Expo
UM became the first manufacturer to launch an electric cruiser in the country by bringing in the UM Thor at the 2018 Auto Expo.

At present, UM has a facility to assemble bikes in Kashipur, Uttarakhand. Its capacity stands at 50,000 units per annum. With the new plant, it will add another 50,000 units and 700 employees in addition to the currently-existing 500 employees. Currently UM has a 50% localisation rate. With the new facility, the brand intends to bring it to 100%. Speaking to the media house, Villegas said:

We are ready to open a new factory in South of India by next year to grow our production base. It will be open by 2019. Most of our market is south and south-west. Seeing the growth potential, we want to achieve 25 percent of the global sales from India in next five years from current seven per cent.

Villegas added that the company is considering Hyderabad region for the new facility. The US-based bikemaker intends to achieve a 30% growth rate per year. It has teamed up with Lohia Auto in a joint venture for the India operations. UM has reportedly registered a sales figure of 10,000 units in 2017. At present, there are 75 dealerships in the country.

UM Renegade Duty S right side at 2018 Auto Expo
With an affordable starting price of INR 1.10 lakhs, ex-showroom, the Renegade Duty is expected to further drive sales in the country.

Also Read: Royal Enfield Thunderbird 350X vs UM Renegade Sports S – spec comparo

The brand recently launched the Renegade Duty S and Duty Ace at the 2018 Auto Expo. The two bikes will be the company’s most affordable products in the country. The manufacturer is also reportedly working on a 230 cc cafe racer which is likely to enter the market next year.

UM Renegade Duty S - Image Gallery

[Source: ET Auto]

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UM planning engine manufacturing facility in India - Report

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