UM Motorcycles plans to price its three cruisers in the Rs. 1.50-1.75 lakh range with 60 percent localisation and a monthly production capacity of 1200 units.
The highly anticipated 2016 Auto Expo will be kickstarting later this week and making its entry into the ever growing Indian two-wheeler market will be UM Motorcycles. Operating in a joint venture with the Lohia Group, the American automaker will be introducing three cruisers to take on the offerings from domestic manufacturers.
The models in question are the Renegade Commando, Classic and the recently unveiled Sport S, powered by the same 280cc single-cylinder engine producing around 25 BHP and 21.8 Nm of torque, paired to a 6-speed gearbox. While the engines are the same on all models, differentiating the three will be the automaker’s pricing strategy.
UM Motorcycles plans to position its models in the affordable section of the quarter-litre cruiser space. As a result, prices are expected to be in the vicinity of Rs. 1.50-1.75 lakh range (ex-showroom). While the number may seem optimistic for a new brand, the 60 percent localisation level needs to be factored as well, with the engines being fully imported.
That said, this pits the UM Renegade models primarily against the Royal Enfield Thunderbird which retails at a price of around Rs. 1.45 lakhs (ex-showroom) while keeping the Bajaj Avenger 220 safely under the Rs. 1 lakh barrier. UM’s success also depends on the company’s sales and service network. The automaker has set up around 40 dealerships and an additional 5-10 outlets are expected to be set up by the end of this fiscal.
UM Motorcycles has invested Rs. 120 crores at Lohia Group’s Kashipur facility and has an installed manufacturing capacity of 1000-1200 units per month, achievable in single shift. The automaker is in the process of expanding to the second shift that will increase production to 3000-4000 units. Make sure to check back as we will be keeping a keen ear as UM will be announcing its plans at the expo.