UM Motorcycles, Lohia Auto form JV to make bikes in India

US-based UM Motorcycles and Lohia Auto today formed a joint venture with plans to invest Rs 120 crore to roll out a new range of motorcycles for the Indian market.
The partners inked an agreement today to set up the JV firm, UM Lohia, in which both the partners will have equal stake.
The JV, which is expected to start production by the second quarter of 2015, would utilise Lohia Auto's Kashipur facility in Uttarakhand to manufacture new products.
"We are looking at India with a long term perspective, with a vision to not only cater to domestic need but to also export to different parts of the world," UM International Director Juan Villegas told reporters here.

The JV would begin with manufacturing cruisers and follow it up with other products catering to sports and touring segments, he added.
Initially, the company is looking at the 200-500 cc cruiser segment.

Commenting on the development, Lohia Auto Director Ayush Lohia said: "The products of UM blend with our strength of manufacturing will definitely enthral Indian bike lovers."
The Rs 120 crore investment will mainly will go into plant, machinery and R&D development.
The JV will also export its products to ASEAN countries, Latina America and even to the US, Villegas said.