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American motorcycle manufacturer UM Motorcycles has put a stop to all its India operations because of a dispute with its domestic joint venture partner Lohia Auto. Rumor has it that neither company is willing to work towards reviving the brand in the country.
With no support from UM Motorcycles and Lohia Auto, most dealers have cut their losses and have shut shot. Only a few remain open but are restricted to servicing motorcycles that have already been sold.
The company has also put a stop to all manufacturing at its Kashipur facility. Dealers hear (from both companies) that operation will begin soon but still have nothing concrete to work with. Several dealers say that there is no chance that UM Motorcycles will restart operations in India.
Mr Ayush Lohia, the Chief Executive Officer at Lohia Auto confirmed these reports and sad that being operational in the short term is out of the question because they have no support from UM's side. He added that UM had financial problems back in the United States.
Mr Lohia, however, said that Lohia Auto is doing everything they can to support dealers, but also stress on the fact that they will not be able to run the joint venture by themselves. Either party cannot make a decision because there are terms and conditions that need to be met.
UM dealers are planning to file law suits against the joint venture. Dealers typically invest up to Rs 1 crore to set up a dealership and want to be compensated. Frequent recalls have led to disputes between UM Motorcycles and Lohia Auto and this has resulted in dealers losing the most.
It was reported earlier that UM Motorcycles was planning to launch a set of new motorcycles around the Diwali season this year, but that seems highly unlikely. At the peak of its operations the company retailed the Renegade Commando Classic, Renegade Commando Mojave, Renegade Commando and Renegade Sports S priced between Rs 1.59 lakh and Rs 1.95 lakh (ex-showroom, India).
Thoughts About UM Motorcycles Stopping Production Of Its Products
Honestly, everyone saw this coming. There was no hype about UM Motorcycles in the country. The brand came in as quietly as they appear to be leaving. Yes, this does leave dealers stranded but we think these dealers should have done their homework.