According to FADA, the plagued relationship between the owners (Ayush Lohia, CEO, Lohia Auto & Jose Villegas, MD, UM Asia International) has caused huge losses to dealers and has exposed them to unwarranted litigation from customers.
After the untimely exit of UM Lohia from the Indian automotive market, the Federation of Automobile Dealers Associations (FADA) stepped in to protect customer and dealer interests by issuing legal notices to the company. So far Fada has not received a satisfactory response from UM Lohia and appealed to the Prime Minister’s Office (PMO) & Allied Ministries to intervene and address the matter.
FADA requested the PMO and Allied Ministries - Heavy Industries, Road Transport & Highways, Commerce & Industry as well as Corporate Affairs Ministries to consider the present scenario and introduce a Franchisee Protection Act in the country that would safeguard the interest of the customers, dealers and employees.
Through its counsel Khaitan & Co, FADA had previously issued a legal notice to UM Lohia and its management, calling upon them to redress all grievances of dealers and to take steps to ensure the maintenance and servicing of motorcycles already sold in accordance with the warranty terms and law.
According to FADA, the plagued relationship between the owners (Ayush Lohia, CEO, Lohia Auto & Jose Villegas, MD, UM Asia International) has caused huge losses to dealers and has exposed them to unwarranted litigation from customers. Apart from the business losses that the dealers are facing, it has also resulted in tarnishing their image in society and has therefore added to their plight and caused mental harassment.
UM Lohia was a joint venture between the Lohia Group and UM Motorcycles, an American motorcycle company. The joint venture was set up in 2016 to manufacture and sell ‘American’ style motorcycles under the brand of ‘UM Motorcycles’ in India.