UM Motorcycles to enter into JV for locally producing bikes in India

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UM Motorcycles, which made its India debut at the recently concluded  Auto Expo 2014 early this month, is about to enter into a Joint Venture for local manufacturing of the products it wishes to bring to India.

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It may be noted that while UM’s Indian partner will be responsible for local manufacturing of the motorcycles, the American bike marque will be responsible for all other operations, which would range from imports to Research and Development and setting up for dealership network.

Rajeev Mishra, Director, UM Motorcycles India, recently revealed to media that “to achieve cost competitiveness in the market, we plan to locally manufacture our bikes. We will soon announce the name of our JV partner, which will execute the manufacturing operations while we will handle all other areas. However, setting up such as facility will take time and we expect to begin our local manufacturing by April 2015.

Initially, the manufacturer will commence local assembly of as many as four models – Renegade Commando and Commando limited edition (both of which are powered by a 223cc, single-cylinder engine) and two variants of the Renegade Sport (which will be powered by 223cc and 200cc engine options). UM Motorcycles India launch is expected to hapen in the second half of ongoing year.

We do not plan to do 100 percent CKD of these models. Expect local content up to 50 percent in our assembly operations; we have already lined up our parts suppliers for the same,” added Mishra.

It is being said that these bikes would be assembled in Uttarakhand and currently, the bike maker is studyingthe 200cc-300cc segment of Indian bike market, for proper positioning of its upcoming products. The bike maker is planning to launch its models in the price bracket of Rs 80,000- Rs 150,000.

Speaking of the marketing strategy, Mishra said,“we plan to focus on the 200cc-300cc segment and we are doing the math to position our models in the affordable ex-showroom price bracket of Rs 80,000-Rs 1,50,000. Riders who are looking to buy Royal Enfield bikes have limited choices today and we plan to offer more options in that segment. Our Commando cruisers not only offer solid build quality but are also high on technology and innovative features.” 

via Autocar Pro

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