American bikemaker UM Motorcycles joins India based Lohia Auto to launch new bikes

Saturday 27 September 2014, 16:11 PM by

Popular name in American bike market, UM Motorcycles has agreed to enter into joint venture with India based popular two-wheeler maker Lohia Auto. The joint venture for launching fresh new range of bikes for the Indian market shall attract an investment of Rs. 120 Crores. Both the companies shall hold about 50 – 50 % stakes in the venture.

Speaking more on the occasion, Rajeev Mishra, director at UM Motorcycles India, stated to sources, “We have finalised our terms with the Indian company to start a joint facility and roll out the American bikes in the domestic market.” In the initial stage, the bikemaker may launch three cruiser bikes for the Indian market, these bikes may be powered by 250 – 350cc engines. Starting next year, the bikes are expected to be rolled out from contract manufacturing arrangement in the country. The production plant is likely to be set-up Kashipur in Uttarakhand with an initial production capacity of about 1,00,000 units. The Lohia Auto’s existing plant may also be used for production of electric bikes and scooters sometime by second quarter of 2015.

Mishra further added, “We would be working in the affordable price segments that should start at Rs 1 lakh going by the current taxation structure. As we move ahead we plan to enrich the offering by launching sports bikes and the current hotspot scooters for the Indian customers.”

Source: ET

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