This US cruise-bike maker plans to make India a hub of 300-700cc bikes

At present, it produces vehicles up to 300cc in India but is working on different engines for higher capacity

US-based motorcycle maker UM International, LLC is planning to make India a hub for bikes under 700 cc. The company said in the next three years all the bikes under 700 cc and over 300 cc will be developed and manufactured in India. The company is planning to set up a facility, along with a new research and development unit, in Maharashtra or Tamil Nadu.

Speaking to Business Standard after launching Renegade Commando Mojave and Renegade Commando Classic in Chennai on Monday, Jose Villegas, director, UM India, said India is becoming a hub for premium bikes and UM International is bullish about the country not only as a market, but also as a play for global operations.

"We will make India a hub for developing and manufacturing vehicles which are more than 300 cc and less than 700 cc," said Villegas. At present, the company has platforms to produce up to 300 cc vehicles in India. The company is working on different engines and platforms for higher capacity.

The company, which has a manufacturing unit in Uttarakhand, expects to achieve sales volume of over 25,000-28,000 units this financial year up to March 2018. Around 30 per cent is expected to come from Classic models.

In the last 10 months since its inception, the company has sold around 10,000 units in the country.

The proposed new facility, which will have the capacity to make 120,000 to 150,000 units per annum, will see an investment of about Rs 100 crore.

He added, within a short span, the company has achieved localisation of over 72 per cent and in the next 18 months the company plans to achieve 100 per cent localisation, which will not only help the company be cost-competitive, but also help make profits.

The company currently has 64 dealers and plans to increase this figure to 72 before Diwali.

Speaking about exports, he said, the company will start exporting 300-cc bikes from next year.

The cruiser bikes are manufactured by UM Lohia Two Wheelers.

US-based UM International, LLC, and Lohia Auto joined hands in September 2014 to form UM Lohia Two Wheelers.