UM Motorcycles released a legal notice by the Dealer Association: an American brand using faulty Chinese parts on motorcycles

Via its Khaitan & Co board, the Federation of Automobile Dealers Association sent a formal notice to UM Lohia and its management. The Association stands ready to go to court if necessary, and will continue to update and engage the government.

UM Motorcycles released a legal notice by the Dealer Association: an American brand using faulty Chinese parts on motorcycles

UM Lohia is a joint venture between the India-based Lohia Group and the American motorcycle manufacturer UM Motorcycles. The company was founded in 2015 and the first motorcycle was sold in the second half of 2016. UM Lohia was to manufacture and sell bicycles under the UM Motorcycles brand in India.

UM Motorcycles released a legal notice by the Dealer Association: an American brand using faulty Chinese parts on motorcycles

US-based manufacturing recently halted all operations in India due to a dispute with the Lohia Group. As a result, the company’s dealers suffered heavy losses. Most dealerships are closing and those that remain open offer services for bicycles already sold.

UM Motorcycles released a legal notice by the Dealer Association: an American brand using faulty Chinese parts on motorcycles

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

UM Motorcycles released a legal notice by the Dealer Association: an American brand using faulty Chinese parts on motorcycles

Additional problems began for the company when customers realized that UM Lohia was using parts made in China to assemble what was sold as an American motorcycle. The parts made in China were stored in the company’s Kashipur manufacturing facility. Interest in motorcycles immediately dropped.

UM Motorcycles released a legal notice by the Dealer Association: an American brand using faulty Chinese parts on motorcycles

Dealers say UM Lohia was installing Chinese-made parts in UM motorcycles at their factory. The Body Dealer says customers don’t want to buy cheap Chinese replicas of American motorcycles.

UM Motorcycles released a legal notice by the Dealer Association: an American brand using faulty Chinese parts on motorcycles

UM Lohia did not compensate the concessionaires and did not reimburse the deposits paid by them. The company eventually recognized the problem but did not buy back the stock of motorcycles or return the advances made.

UM Motorcycles released a legal notice by the Dealer Association: an American brand using faulty Chinese parts on motorcycles

The UM Lohia BS-IV motorcycles remained roadworthy. Components like the EFI module controller and gearbox failures have become a common problem. Dealers were unable to process warranty claims on defective UM motorcycles because the company closed its doors and its spare parts warehouse.

UM Motorcycles released a legal notice by the Dealer Association: an American brand using faulty Chinese parts on motorcycles

UM Lohia, its promoters and management have shown no interest in resolving the situation. Instead, UM Lohia started new businesses – investing in electric vehicles and looking for dealers.

UM Motorcycles released a legal notice by the Dealer Association: an American brand using faulty Chinese parts on motorcycles

Thoughts on FADA’s intervention to help UM dealers

This is the worst possible situation for a dealership. FADA and its legal team are on the long term. We all know how the legal system in the country of India works. It may be a decade before dealers are compensated, and UM Lohia will play the electric game in the meantime. That’s life.


Source link

Leave a Reply

Your email address will not be published. Required fields are marked *