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The Federation of Automobile Dealers Associations (FADA), which has taken up the cause of UM Motorcycles dealers, said on Tuesday that it has requested the Prime Minister’s Office and the Ministries of Heavy Industries, Road Transport and Highways, Commerce and Industry, and Corporate Affairs to intervene in the matter.
UM Lohia, a joint venture between the Lohia Group and American company UM Motorcycles, was set up in 2016 to manufacture and sell American-style motorcycles in India under the ‘UM Motorcycles’ brand.
FADA had issued a legal notice in October to UM Lohia management and promoters asking them to redress all grievances of dealers and take steps to ensure the maintenance and servicing of motorcycles already sold, in accordance with the warranty terms and law.
FADA said in a release that as it hasn’t received a satisfactory response from the company or the owners, it was taking this step.
It also said that instances of auto manufacturers shutting shop and exiting the country overnight brings about a “strong urge” to introduce the Franchisee Protection Act.
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