US bike maker UM building local capacity in India

Plans to launch two new models in next two months

UM Lohia Two-Wheelers (UMLTPL), the Indian arm of American two-wheeler maker UM International LLC, plans to invest in expanding its capacity in the country as it eyes 100,000 unit sales per year within the next three years. The company is also working on increasing localisation in its bikes from a current 65 per cent to 90 per cent over the next few months. Localisation is expected to reduce costs by 15-18 per cent.

Speaking on the sidelines of opening its first dealership in Ahmedabad, Rajeev Mishra, CEO of UMLTPL said plans were afoot to double the capacity at its existing site