US-based
motorcycle brand UM Motorcycles will be introducing its first motorcycle, a
cruiser in India through a joint venture company it has formed with India’s
Lohia Group. UM Motorcycles India has signed a strategic joint venture with
Lohia Auto, an automotive division of the Lohia group. The definitive agreement
was signed in New Delhi between Juan Villegas, Global Director-Business
Development, UM Group of Companies and Ayush Lohia, Director, Lohia Auto
industries. UM Motorcycles had displayed its products at the 2014 Auto Expo
held in Greater Noida.
As
per the agreement, the two companies will create a joint venture company with a
50-50 equity stake each. The joint venture company will market a full new range
of motorcycles designed especially for the Indian markets. The bikes will be
manufactured at the Lohia plant in Kashipur, Uttrakhand where Lohia Auto
current facility has a capacity to produce 100000 units per year. The expected
start of production will be around the second quarter of 2015.
The
overall investment in the joint venture company over a definitive period will
be approximately Rs 120 crore. UM International, through this joint venture,
aims to foray into the burgeoning motorcycle market in India by offering
consumers a new, fresh alternative, initially in the cruiser category and
subsequently in other segments. In addition, UM International will make its
India operation an important export hub for its products to its global
distribution network.
According
to a press release, UML’s mission is to offer innovative, affordable,
aspirational, safe and comfortable motorcycles. UML is confident about setting
a firm foothold in the Indian market with the "Made in India"
branding.
Ayush Lohia, Director, Lohia Auto stated that the products of UM blend with his
company’s strength of manufacturing will definitely enthral Indian bike lovers.
Juan Villegas, Director UM International
said his company is in the country to make difference in the Indian motorcycle arena.
“We are looking at India with a long term perspective, with a vision to not to
only cater to domestic need but to also export to different parts of the world.
We will continuously keep improving our products to be ahead of the league in
terms of performance and affordability. We will launch bikes in all segments
including sports and touring as we move forward," he added.
Picture of UM Cruiser Renegade Commando
2014