Calcutta, July 30: UM Motorcycles, the American bike maker present in India through a joint venture with Lohia Auto, will enter the 400cc and 500cc segments with its Renegade series in the next financial year.

Present in the mid-segment of 300cc bikes right now, UM Lohia Two Wheelers sells the Renegade Commando and the Renegade Sport S (each with a 279.5cc engine). It will have the Renegade Classic and the Renegade Mojabe next month, taking its product offering to four.

"We are present in the highest selling segment. We launched our bikes in India in September 2016 and have sold 8000 bikes in 2016-17," said Rajeev Mishra, CEO of UM Lohia Two Wheelers, who was in the city to inaugurate the first dealership of the company.

In 2017-18, the company plans to sell 30,000 bikes. "In the first quarter of 2017-18 we have done 3700 bikes and we are confident of achieving our target," said Mishra.

In the 300cc category, which has a market size of 70,000 bikes per month, Royal Enfield leads with a 95 per cent market share, selling 58,000 bikes a month.

While the Renegade Commando and the Renegade Sport S have had a good run, the two bikes to be launched next month are expected to boost sales further.

"The Renegade Classic will have a retro styling, while the Mojabe will be a special edition bike with futuristic styling," said Mishra.

Priced in the Rs 1.5 lakh to Rs 2.5 lakh range, the products are aimed at customers in the age group of 20 years to 45 years.

Besides adding products to the portfolio, UM Lohia is also aggressively expanding its footprint in the market.

UM Bengal is the second dealership of the company in Bengal, the first being in Siliguri. The joint venture has 65 dealerships in the country. "We plan to have 100 odd dealerships by 2017 end. We are present in 47 towns in Tier I and metro cities," said Mishra.

The company has a plant at Kashipur in Uttarakhand where an investment of Rs 100 crore has been made.

The UM bikes are manufactured with 70 per cent localisation. "We import components of the engines and some plastic components too right now. But we are going to achieve 100 per cent localisation by 2017-18," he said.

"Right now our margins are under pressure as we have priced our products aggressively. With 100 per cent localisation we will be able to increase our margins," he said.