Bikemaker UM gears up for India expansion

American motorcycle brand UM International, which has been attempting to make inroads into the Indian market for over a couple of years, will now focus on increasing the number of service centres.

Some of its dealers sold the bikes even in areas where after-sales services were not set up, which resulted in inconvenience to the customers.

In order to rectify this, the company, which forayed into India with Lohia Auto, is now in the process of taking its service centre count to over 125 from around 70 at present. Most of the expansion is planned in tier-II cities, the company officials said.

The company has a presence in about 39-odd cities in the country.

“There are challenges for us, as some of our dealers in their excitement sold bikes in cities where the after sales services were not present. Though the number is small, we are trying to catch up on that” said Rajeev Mishra, CEO, UM-Lohia Two-Wheelers Pvt Ltd (UML).

UM International LLC and Lohia Auto joined hands in September 2014 to form UML. The company during the recent auto show held in Delhi showcased what it claims to be the world’s first cruiser electric bike.

Though at present the all-imported electric cruiser costs just under Rs 5 lakh, the company executives expect the cost to get much cheaper by around Rs 2 lakh once indigenisation kicks in within a year.

According to the industry analysts, there is a dearth of options for cruise bikes in India though Bajaj Auto, Suzuki Motorcycle, Royal Enfield are few companies which make such vehicles. There are premium cruise bikes available, but they have a niche market.

In order to expand upon its footprint, the company is also planning to set up an engine manufacturing facility and a vehicle assembly unit in South India, preferably in Andhra Pradesh as around 65% of the sales for the company come from South and West India.

However, UML has a long way to go from an average 1,100 units it sells in a month to make a significant dent in its competitors.

UML's rival Royal Enfield (RE) posted its best-ever performance in the quarter ended December 2017, selling 206,736 motorcycles, a growth of 18.9% as compared to 173,859 units sold in the same period last year.

The company officials said that UML is also trying to develop India as its base for its exports. It recently began exporting to countries including Costa Rica, Nepal, Bhutan, Chile, among others.

FOR A TIER-II TRIP

• The company is now in the process of taking its service centre count to over 125 from 70
   
• Most of the expansion is planned in tier-II cities; it has a presence in 39 cities
   
• The company during the recent auto show held in Delhi showcased what it claims to be the world’s first cruiser electric bike