EXCLUSIVE: UM India eyes sub-Rs 2 lakh price point for upcoming Renegade motorcycles

American motorcycle maker UM International (UM stands for United Motors), also known as UM Motorcycles in India, is finally geared up for commercial rollout of its models in the local market. To begin with, the company will launch three models from its Renegade series of motorcycles on February 3, 2016 – the inaugural day of the Auto Expo in Greater Noida, Delhi NCR.

According to UM’s global website, the company has classified the three upcoming Renegade motorcycle models under the cruiser category.

All three upcoming motorcycles from the Renegade family – Commando, Sport S and Classic – will be powered by the single-cylinder, water-cooled, 280cc engine, and hence will be placed at the affordable end of the midsized motorcycle category (250cc-800cc).

According to an official release, the 280cc engine, which will be mated with a six-speed transmission, can develop a maximum power output and peak torque of close to 25bhp and 21.8Nm respectively.

It can recalled that Autocar Professional first broke the story on UM Motorcycles setting up shop in India in January 2014, followed by another piece on UM’s hunt for an Indian partner in February 2014.

The company plans to start accepting the bookings for the three Renegade models as early as February 3, 2016.The deliveries, on the other hand, as officially communicated by the company, will begin by end-March 2016 via close to 40 dealerships.

UM India is looking at retailing the upcoming motorcycle models in the Rs 150,000-Rs 175,000 price range. While the company has achieved the localisation rate of 60 percent in the manufacturing operations of the upcoming models, it, however, currently imports the engines (280cc).

Price point wise, UM-Lohia's Renegade motorcycles are likely to compete with Royal Enfield's cruisers -- the Thunderbird 350 and 500, which retail at upwards of Rs 1.35 lakh. Also, the upcoming Renegade models might draw some potential buyers of DSK Hyosung's twin-cylinder, 250cc cruiser, the Aquila 250. The latter, a locally assembled model, has an asking price of more than Rs 3 lakh in the market.

Speaking exclusively to Autocar Professional, Rajeev Mishra, director, UM India and AMEA (Asia, Middle East and Africa) revealed, “We have set up around 40 dealerships for retail distribution. Another 5-10 dealerships are expected to come up by March-April. All the three upcoming models will have high local content. We have achieved close to 60 percent localisation in them in order to keep a check on the costs. We have also set up a stable supplier base and with plans to localise further, we continue to look for component suppliers for crucial parts.”

The company official added that his team is currently working on localising the 280cc engine at the manufacturing plant. “This is a complicated process and takes time. We are working towards localising the powertrain and this would happen in the coming months,” said Mishra.

It can be recalled that in September 2014, the company had announced that it had entered into an equal joint venture with Lohia Auto, and will use the latter’s manufacturing unit located in Kashipur, Uttarakhand. The company had also announced that both the partners would jointly invest close to
Rs 120 crore at the manufacturing site to roll out the motorcycle models.

On competition he clarified that “we are looking to build up our own niche space in India’s large motorcycle market with the UM Renegade motorcycles and the other models that will follow. We are not particularly competing with any existing model(s) or manufacturer(s) in the market.”

Quoting Ayush Lohia, CEO, Lohia Auto Industries the press release also mentioned that the companies are upbeat about the products and are looking at ‘considerable market share’.

Lohia’s production plant in Kashipur currently has one motorcycle assembly line that can produce upto 1,000 – 1,200 units per month. “We are in the process of scaling up our operations at the production plant. Once the second assembly line comes up, our monthly production capacity will be ramped up to 3,000 – 4,000 units,” said Mishra.

The company also plans to venture into the bigger engine displacement categories, specifically the 400cc in the coming months later this year. “Once our local operations will gather momentum, we will evaluate export options to South East Asia including ASEAN nations. However, it is too early to comment on this,” he added.