- FADA serves legal notice to UM India
- UM dealers suffered huge losses
- UM Lohia has shut down Indian business
The Federation of Automobiles Dealers Association (FDA) has issued a legal notice to UM Lohia India. This company is a joint venture between UM Motorcycles and Lohia Auto.
The joint venture was setup in 2016 between the two companies to manufacturer, market and sell UM motorcycles in the country. While the first few years went well, a lot of customers started facing issues when it came to the overall quality and the way the products were positioned. As a result, the sales started to decline.
During the BS-III to BS-IV transition, the UM dealers were left with BS-III stock, which they couldn’t sell due to the legality of the policy. The company refused to compensate the dealers and also refused to return the advance payments given by many dealers. The BS-IV motorcycles developed a lot of problems due to which dealers couldn’t sell much of it.
According to FADA, UM Lohia has shown no inclination towards resolving the dealers’ grievances. FADA and the affected dealers want UM to redress all grievances of dealers relating to the losses suffered by the dealers. If the company refused to clear things out, FADA will take legal action against the company.
