Motorcycle manufacturer UM Global announced its plans to begin assembling motorcycles in India.
The announcement was made by the Miami-based company at the Auto Expo, according to Rush Lane. UM Global displayed several models at the Expo, including Razor, Max and Venus, Falcon, Nitrox and Street Fastwind.
UM Global is the next big motorcycle manufacturer to enter the Indian market of motorcycles, following Harley Davidson and Indian Motorcycle, Indiatimes reported. UM Global is looking to assemble sports bikes in India with at least half of the components sourced domestically. The plan is designed to help keep prices lower in order for UM Global to compete against companies such as Royal Enfield and Bajaj Auto.
UM Global is one of the youngest motorcycle manufacturers in the world, according to Indiatimes. The company began operations in 2000, and since then has been able to make their annual revenue of $850 million.
UM Global is planning to enter the Indian market with four bikes to start, Indian Cars Bikes reported. The four bikes are cruisers, including a standard and special edition of the Renegade Commmando powered by a 223cc single-cylinder engine, and the Renegade Sport in their 223cc and 200cc forms. These four bikes will be facing competitors such as Royal Enfield in India.
Various car features are included in UM's sports models, such as hands free calls through Bluetooth, a keyless ignition, and a GPS, according to Rush Lane.
Rajeev Mishra, director of UM India Two Wheelers, talked about UM's plans when the first report of their move to India came on Jan. 17, Indiatimes reported.
"Unlike other companies, we are not importing bikes from the U.S.," Mishra said. "We are planning to assemble bikes in India to achieve cost competitiveness. We will go for localization and plan to start with at least 50 percent content sourced from the Indian market."
UM Global is aiming to start production by the middle of 2014 and release its products before August-September, according to Indiatimes. Mishra has not given names of any venture partners in India.
