UM Motorcycle to revamp business in India as sales hit zero

Both for April and May 2019, the company has neither manufactured nor sold a single motorcycle in the country, according to the sales data released by the Society of Indian Automobile Manufacturers (SIAM).

And to make matters worse, Rajeev Mishra, CEO, UM Lohia Two Wheelers Pvt. Ltd, has quit the company a couple of months back.  It is reliably learnt that he has joined a new electric two wheeler project in Andhra Pradesh which will soon be launching electric two wheelers in the country.  Besides, of the 70 odd dealers, more than a handful of UM dealers have shut shop and have left the UM family.

So has the motorcycle company pulled its plug in India? No, the company is relaunching itself with major changes, according to highly placed sources. New products and revamped existing products will be launched in the next four to six months. The changes have been confirmed by Jose Villegas, Global Sales and Marketing Director of UM International. He said that the current situation is a result of “internal misalignment” which is being streamlined.

The Lohia plant in Kashipur, Uttarakhand has a capacity to produce 100000 units per year. Though UM Motorcycle has a presence in the US and European markets, where it sells two wheelers from 125 cc onward that includes different types of motorcycles, and even scooters, the company has only been selling the 300cc motorcycles in India. UM Motorcycle has for the last few years been selling the Renegade range of 300 cc motorcycles in India. These included the Renegade Commando and the Renegade Sport S.

In late 2017, the company launched different avatars of their existing bikes like the Renegade Commando Classic and Renegade Commando Mojave (pronounced Mohaave). The Renegade Commando Mojave was inspired from The Mojave desert, North America’s largest and driest desert and shared the same engine as the Renegade Commando Classic .

At the 2018 Auto Expo, UM Lohia Two Wheelers Pvt Ltd unveiled three motorcycles The Renegade Thor, which was the world’s first electric cruiser, along with the Renegade Duty S and the Renegade Duty Ace.

Will the UM-Lohia project disintegrate?

Jose admitted that production at the Kashipur plant has been halted because of “internal misalignment” and that the company is going through an “internal restructuring”. According to Jose, the company is ready with a new plan which would essentially mean a “relaunch” or “regeneration” of the company with clear goals and targets. Jose will be in total charge and control of the business and he will run the business. Does that mean that the joint venture with the Lohia group is being dissolved and that UM will be running its operations in India alone? Jose refused to comment.

But he did confirm that he had invested additional money into the company on his own. He did not disclose the amount.  In the next 4 to 6 months, the company will launch a BS VI Renegade 2.0 with a new DOHC four valve engine, a new Electronic Fuel Injection, a new suspension, new LED lights, a new fuel tank, dual channel ABS and several other changes. From the earlier 279cc engine this one will be a 292cc engine producing more power and torque.

After the relaunch of its existing products with a complete overhaul, UM Motorcycle will also launch the Renegade Vegas 300, a sports cruiser. The company is also planning a Renegade Scrambler 300 in due course of time. Another product  likely to be made in India will be the Renegade Ladakh, a touring kind of bike. Jose said that this bike will be made exclusively for India. The company is also looking at the UM Chill electric scooter. But Jose said that the plan is under study as of now.

With regard to its dealers, the company said that a majority of them are still with him and he will be giving them financial support. For the present the dealers will focus on customer service and will be addressing shortage of part.