Chennai: Federation of Automobile Dealers Association (FADA) has taken up the cause of the dealers of “UM Motorcycles”, which motorcycles are manufactured and sold in India by UM Lohia Two Wheelers Pvt. Ltd (UM Lohia).
According to a press release, UM Lohia is a joint venture between Lohia Group and UM Motorcycles, an American motorcycle company. The joint venture was set up in 2016 to manufacture and sell in India “American” style motorcycles under the brand of “UM Motorcycles”.
The dealers are aggrieved by dishonesty and fraud on part of management and promoters of UM Lohia, including founders Ayush Kumar Lohia and Jose Miguel Villegas, which has plagued the relationship between them since beginning and has caused huge losses to dealers as well as exposed them to unwarranted litigation from customers of UM Motorcycles, the release said.
The dealers’ woes began as soon as UM Lohia entered the market with its motorcycles. It soon came to light that the so-called “American” motorcycles were actually being assembled from Chinese parts at UM Lohia’s manufacturing plant in Kashipur, Uttar Pradesh. Consumer interest immediately dipped as no one wanted to purchase cheap Chinese replicas of “American” motorcycles. The brand lost its value and with it the investments of dealers, who were now holding a product few desired, the release added.