UM Motorcycles Issued Legal Notice By Dealer Association: UM Lohia & Its Management Involved

Via its counsel Khaitan & Co, the Federation of Automobile Dealers Association has issued a legal notice to UM Lohia and its management. The Association is ready to go go to court if needed, and will continue to update and involve the government.

UM Lohia is a Joint Venture between India based Lohia Group and American motorcycle manufacturer UM Motorcycles. The venture came into existence in 2015, and the first motorcycle was sold during the second half of 2016. UM Lohia was to manufacture and sell bikes under the UM Motorcycles brand in India.

The American based manufacture put a stop to all its India operations recently because of a dispute with the Lohia Group. As a result, dealers of the company faced heavy losses. Most dealers shut shop and the ones that remain open cater to services for bikes that have already been sold.

Dealers say they are aggrieved by the dishonesty and fraud on part of the management and promoters of UM Lohia, including its founders Mr. Ayush Kumar Lohia, and Mr. Jose Miguel Villegas.'

Additional problems started for the company once customers realized that UM Lohia was using Chinese made parts to assemble what was being sold as an American motorcycle. Chinese built parts were stocked at the company's Kashipur manufacturing facility. Interest in the motorcycle immediately dropped.

Dealers say that UM Lohia were installing Chinese made parts into the UM motorcycles at their plant. The Dealer Body says that customers do not want to purchase cheap Chinese replicas of American motorcycles.

UM Lohia did not compensate dealers, and has not returned advance payments that were made by them. The company eventually acknowledged the problem but did not buy back the motorcycle stock or return advances made.

UM Lohia BS-IV motorcycles were remained roadworthy. Components such as EFI Module controller, and gearbox breakdowns became a common issue. Dealers were unable unable to service warranty claims on defective UM motorcycles because the company shut shop and shut its spare parts warehouse.

UM Lohia, its promoters, and its management, have shown no interest in fixing the situation. UM Lohia has instead started new ventures — investing in e-vehicles, and looking for dealers.

Thoughts About FADA Stepping In To Help UM Dealers

This is the worst possible situation to be in for a dealer. FADA and it's legal team are in for a long haul. We all know how the judicial system in the country that is India works. It may be a decade before the dealers are compensated, and UM Lohia will play the electric game in the mean time. Such is life.