UM Motorcycles rides the Indian midsize motorcycle wave

Here's the latest example of India being a fast-growing market for midsize motorcycles. American brand UM which, along with its Indian partner Lohia Auto, launched its first set of three 280cc cruiser motorcycles at the Auto Expo on February 3, received 146 bookings within six-and-a-half hours of launching them. Nearly a hundred more customers booked a UM motorcycle by the afternoon of February 8. Of the total bookings, 156 are for the Renegade Commando (Rs 1.59 lakh, ex-showroom, New Delhi) and  the rest for the Renegade Sport (Rs 1.49 lakh, ex-showroom, New Delhi).

UM Motorcycles India, which has invested Rs 250 crore in the project, says 10,000 is the maximum number of bookings it will accept in the first phase. That is a fifth of the annual production capacity at its plant in Kashipur, Uttarkhand. More than the brand name (which is not a familiar one yet in India), it could be the pricing’s 'sweet spot' that is attracting customers. "There's a huge liking for cruisers in India, yet many are not available in the Rs 1.5-2 lakh price range. With the Renegade cruiser line-up, we aim to close this gap," says Juan Villegas, global director - business development, UM International.

The joint venture has appointed 30 dealers in 23 cities so far but they are yet to be operational. The bookings (of Rs 5,000 each) were made online. The dealerships will start operations from early next month, according to the company. Around 20 more dealerships are planned to be set up by end-April, half of them in Tier 2 and Tier 3 cities.

India is the 33rd market for UM Motorcycles, which was born in the early 2000s. It had first showcased its products in India at the 2014 Auto Expo. UM Motorcycles is bullish about carving a respectable space for itself in a market dominated by one player. "Seeing the potential of India as a giant motorcycle market, we are confident of not only steaming up the competition but also taking a decent chunk of the market," says Rajeev Mishra, director, UML, who expects the midsize motorcycle market to be around 650,000 units this year, up from around 500,000 in 2015.

India is seen both as a market and an export base by UM Motorcycles. South East Asia, Latin America and Africa would be serviced by UM Motorcycles Lohia. Therefore, the JV has kept provision of doubling the production capacity at its plant (UM Motorcycles' fourth plant globally).

As the American brand takes baby steps in the India, it is also simultaneously working to localise its motorcycles heavily in the next six months. Building a strong vendor base will be crucial as UML plans to launch motorcycles with engines of up to 500cc in the next two years. Mishra reveals that a 400cc motorcycle will join the existing trio towards the end of this year.