UM Motorcycles mulls entry into Indian scooter market

The growing scooter wave in India is attracting the interest of American brand, UM Motorcycles. The brand is yet to deliver its motorcycle to the first Indian customer, but it is already contemplating an entry into the growing scooter market.

Scooters have captured a 30 percent share of the Indian two-wheeler market, as of June 2016. The entry of UM Motorcycles into this segment may happen by 2019. That is because the company is yet to take a call on the specifications and positioning of its scooter in India. "Even for our motorcycles, it took us two years to come up with the right proposition," says Rajeev Mishra, CEO, UM Lohia Two Wheelers. UM Motorcycles has three scooter models – Flash (110cc), Powermax (125cc) and Matrix (150cc) – in its portfolio. 

UM Motorcycles, which launched its first set of products at the Auto Expo 2016, considered launching a 200cc and then a 400cc motorcycle before finalising the 280cc-engined Renegade range.

India could become the largest market for UM

UM Motorcycles plans to start deliveries of its motorcycles by the end of this month. According to Mishra, the order book is 3,500 units strong. Of these, 600 bookings were done during the first week of launch. This reflects the growing trend of midsize and premium motorcycles in India.

These factors, along with the positive outlook for the industry aided by strong economic growth, makes UM Motorcycles, a relatively unknown brand in India, bullish about its prospects here. India could become the single largest market for UM Motorcycles. "Yes, in five years or so, India could grow to be UM Motorcycles' single largest market," says Mishra. Within three years from now, he wants to grow UM Motorcycles to become a "serious competitor" to other premium motorcycle brands in India.

UM Motorcycles' presence in India is a joint venture with Lohia Auto. The JV has a plant with an annual production capacity of 50,000 units in Kashipur, Uttarakhand. That is more than a third of UM Motorcycles' global sales in 2015. India, along with the rest of Asia, is set to lead UM Motorcycles' overall growth plans. Bangladesh and Thailand will join the company's global manufacturing network by October this year. With the new locations, UM Motorcycles will have seven manufacturing locations across the globe.

India, with its healthy GDP growth and a large young population who increasingly prefer to ride premium motorcycles, is set to enjoy a special position in the American motorcycle brand's future.

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