United Motorcycle Company in India

Question: Discuss about theUnited Motorcycle Company in India. Answer: UM (United Motors) is an American dealer in motorcycles founded by Villegas family who before focusing on motorcycle production were specialists in manufacturing all-terrain and off-road vehicles, pit bikes, and mini bikes. The company boasts of having an extensive distribution network of more than 1200 outlets and have spread its wings to over 25 countries including Europe and Asia(Karupp, 2016). The UM company in India is a subsidiary of the UM International established with an exclusive design and innovation for the India market. This essay aims at discussing the history and evolution of the company while looking at the job opportunities available to the company, the gross domestic product and the impact the company has made in the economy of India. The history of motorcycles in India dates back to the year 1955. During this time, the state of India was in need of strong, rough and tough motorcycles for the military and the police force. This was especially for the western part of India which was rugged and had a rough terrain. During this time, the Royal Enfield Company in the United Kingdom supplied the country with the much-needed motorcycles. The delivery of the motorcycles to India marked the beginning of the motorcycle industry in the country which has grown to be the leading manufacturer of two-wheelers in the world today. India motorcycle industry caters for 78 percent of the demand for motorcycle worldwide(Business Maps of India, 2010). United Motors began its operations in India through a joint venture with another company known as Lohia Auto. United Motors went further ahead to more than one hundred crores in a plant based in Kashipur. The plant was able to produce a total of five thousand units of motorcycles in a month to meet the high demand for its headquarter based in New Delhi. The company manufactures motorcycle units which are sold in India under the brand name known as UM Lohia(Yogi, 2014). The motorcycle productions unit began operations in 2016. Among the notable brands manufactured in India by United Motors include the Renegade Commando, Renegade Sports, and the 280 cc cruiser motorcycle(Barretto, 2016). The company under brand name UM Lohia also exports its motorbikes to Bangladesh, Nepal and other markets in the South Asian regions. The motorcycle production unit sources up to sixty percent of its materials locally within India but imports the remaining forty percent which includes the fuel tanks and engines. The companys brand ambassador is Mr. Karan Singh Grover. In comparison with other motorcycle manufacturing companies in India, the company (UM) in its strategic plan to achieve success studied the Indian market and decided to partner with an already established company called Lohia Auto Industries; the two parties agreed to share the partnership on a fifty-fifty basis. This move enabled UM to make an impact immediately into the India market. Unlike other companies which source for manufacturing material from Europe and other Asia countries, UM sources for 60 percent of its raw materials locally hence making it possible to uplift the lively hoods of the locals in India who act as suppliers for the manufacturing plant in Kashipur. Many motorcycle manufacturing companies in India are more inclined towards the global market overlooking the India population who are the largest users of motorbikes in Asia. Upon setting up its manufacturing plant in India, the company upon setting foot in India was quick to tap into the available market. For inst ance, the first line of motorcycles manufactured was intended for the market in New Delhi. The motorbikes first produced were especially tailor-made for the Indian market(CarAndBikeTeam, 2016). The company has invested in the latest technology, for instance, a lot of motorcycle manufacturers in India and the world have battled the challenges of safety for riders. UM has a communication awareness system helmet commonly known as CASH which enables the helmet to communicate with the motorcycle employing Bluetooth technology and a keyless alarm system which a motorcycle owner is recognized from a distance of fewer than two meters while enabling the rider to start the motorbike without necessarily using his keys. Again, their motorbikes are the cheapest compared to other manufacturers in the market. The company manufactures mirrors which have a blind spot, a method not common with other companies in business. The type of mirror allows riders to see vehicles which come from a blind spot a rea of the road. The gross domestic product has grown by 8 percent(ETAuto, 2016). The main reason behind this growth is the development of the four-stroke engine which proved to be efficient regarding fuel consumption. The reduction in duties in India for businesses and the readily available funds from banking institutions are some of the factors leading to this growth witnessed(Rocco, 2016). The international standards of manufacturing which have been adopted in India especially by the motorcycle manufacturers in India ensures that the products exported to Europe, Asia, and African countries are of the expected quality hence exportation of these products generate more revenue for the country. With the growth of the gross domestic product the income for an average family in India has increased, this has led to a relatively large number of teenagers in the country commuting using motorcycles which clearly indicates an improvement in the standard of living. In an economy where industries are being set up for instance such as UM Motorcycle Company, many opportunities come up. For instance, many jobs are created in these sectors. The local populations who reside around areas where manufacturing companies are set up tend to benefits regarding improvement in infrastructure, the creation of jobs, etc. locals population is absorbed to work in the manufacturing and assembly lines, production lines and transport and delivery sectors(THAKKAR, 2016). The result is a growth of the economy of a country such as India in this case, job opportunities for citizens of India and improvement in the living standards of citizens. People employed are now able to pay school fees for their children, pay for insurance covers and even pay for medical expenses as well as afford a decent meal for the whole family daily. The level of infrastructural development in areas where these motorcycle manufacturing industries are set up cannot be underestimated, roads are b uilt, and water and electricity are made available not only to the employees but the communities as well. All in all, the economy of India has grown since the advancement of the country as a leading exporter of motorcycles and associated products. References Barretto, S. (2016, August 12). UM Motorcycles: More bikes to come. Retrieved from AUTOCAR INDIA: https://www.autocarindia.com/auto-news/um-motorcycles-more-bikes-to-come-402761.aspx Business Maps of India. (2010). Motorcycles in India. Retrieved from Two-wheelers-manufacturers: https://business.mapsofindia.com/automobile/two-wheelers-manufacturers/motorcycles.html CarAndBikeTeam. (2016, February 8). Exclusive: UM Motorcycles India to Export Bikes From May 2016. Retrieved from Car and Bike: https://auto.ndtv.com/news/um-india-to-export-bikes-from-may-2016-1274985 ETAuto. (2016, August 2). UM Motorcycles reports 44% global sales growth in Q2 2016. Retrieved from ETAuto: https://auto.economictimes.indiatimes.com/news/two-wheelers/motorcycles/um-motorcycles-reports-44-global-sales-growth-in-q2-2016/53498700 Karupp, N. (2016, March 9). RUSHLANE DAILY AUTO NEWS. Retrieved from The Motorcycles dealership network detailed: https://www.rushlane.com/um-motorcycles-dealership-network-detailed-12190421.html Rocco, M. (2016, April 22). Polaris: Indian Picking Up Speed in Motorcycle Industry. Retrieved from Fox Business: https://www.foxbusiness.com/features/2016/04/22/polaris-indian-picking-up-speed-in-motorcycle-industry.html THAKKAR, K. (2016). India's two-wheeler industry set to record fastest growth in five years in fiscal 2017 . Two Wheelers, 1-2. Yogi, V. (2014, September 29). UM Motorcycles Lohia Auto Sign JV; to Develop up to 500cc Bikes. Retrieved from Car and bike: https://auto.ndtv.com/news/um-motorcycles-lohia-auto-sign-jv-to-develop-up-to-500cc-bikes-672544