FADA has requested the Prime Minister’s Office and Allied Ministries to intervene in the matter.
Even though how exciting and fascinating it might be, it is true that trusting new brands and products is a gamble altogether. While South-Korean automobile manufacturer Kia is enjoying the limelight with its debut in India, UM Motorcycles is in deep troubled waters. Though the company ventured in India in 2016 with aplomb, plagued relationship between the owners; UM Motorcycles and Lohia Group has taken the customers for a toss.
The conflict has caused major losses to dealers and has exposed them to legal actions, lawsuits from customers for whom dealers are the face of the company. Apart from business losses, it has also created a bad name in society.
Previously, the Federation of Automobile Dealers Associations (FADA) had taken up the cause and issued a legal notice to UM-Lohia Group asking them for all the steps to ensure maintenance and service of all the motorcycles that have been sold in the market and to compensate all the losses of its dealers. In a recent turn of events, it has been revealed that the UM-Lohia JV has failed to submit a proper response prompting FADA to request the Prime Minister’s Office and Allied Ministries to intervene in this matter.
This is the 3rd case of manufacturers hastily exiting from the Indian market after General Motor and Man Trucks.
While FADA hopes to resolve the issue amicably, it has threatened to file civil and criminal cases against the company. It is claimed that the unholy exit has caused 2500 job cuts, capital losses of 150 crores and more than 10,000 customers struggling to find spare parts and service facilities for their machines.
UM-Lohia Exit
– UM Motorcycle discontinuation has exposed dealers to unwarranted lawsuits
– FADA seeks PMO and Allied Ministries’ intervention in the matter
– 3rd case of manufacturers hastily exiting from the Indian market
