US-based motorcycle manufacturer UM International is planning to invest $25 million to set up an engine manufacturing facility in India with an annual capacity of 50,000 units, Juan Villegas, Director UM Internatinal LLC told ETAuto in an interview.
The plant is expected to be operational by early next year. “We are considering Hyderabad region for the new plant,” Villegas said. Currently, the company also has a motorcycle assembly plant at Kashipur in Uttarakhand with an annual capacity of 50,000 units. With the new plant, the cruiser motorcycle manufacturer will also employ around 700 people more taking the total headcount to 1200.
At present, our headcount is 500 people. The new plant will also take forward the company’s plan of achieving 100 per cent localisation from the current state of 50 per cent. The company is working in the joint venture with Lohia Auto.
Juan Villegas, Director UM International LLC, “We are ready to open a new factory in South of India by next year to grow our production base. It will be open by 2019. Most of our market is south and south-west”
The company’s products priced between Rs 1.5 lakh and Rs 2 lakh clocked 10,000 units sales last year from 75 outlets across the country.
Going forward, the company expects to grow at the rate of 30 percent per annum. “Seeing the growth potential, we want to achieve 25 percent of the global sales from India in next five years from current seven per cent.” said Juan Villegas
The company first showcased its products in 2014 Auto Expo which was an exploratory visit and to check the appetite of the Indian consumers.
