According to a media report, the American motorcycle brand UM may end its alliance with the Indian arm of the company, Lohia Auto. If sources are to be believed, an official announcement of the same will be made in the coming weeks. UM and Lohia Auto’s partnership was formed in 2014 and the brand together launched their first cruiser in 2016. The manufacturing base was set up in Uttarakhand, which claimed to have an effective production capacity of 1 lakh units per year. The alliance has not panned out for both the companies and failed to improve the business in India.
The brand has failed to register sales since April 2019, as new safety regulations mandate two-wheelers with engine capacity of 125cc and above, be equipped with at least a single channel ABS (Anti-lock Braking System) and two-wheelers below 125cc be equipped with a CBS (combi braking system) system. A lot of dealerships were unhappy as they could not sell any motorcycles and their investments were locked-in, also, many dealerships started shutting shop a year back.
Performance Data for UM Lohia Auto
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After wiping the slate clean, the brand is likely to relaunch as a new entity called ‘UM+’ and is likely to set up its plant in Hyderabad. It is still unclear with whom the brand will form an association with, but it is being reported, that the company has managed to attract some investors. The existing dealers will be expected to resign from UML and begin a fresh start with UM+.
The new entity is expected to bring BSVI ready engines and improve the dealer program as well as the spare parts supply. Further, the company is expected to venture into new cities. But then, who wants to buy these UM bikes?