the Government announced a lockdown across various districts of the country in
a bid to tackle the Coronavirus disease (Covid-19), Lohia Auto, an electric
vehicle player, announced its closure of its production at its Kashipur
facility in North India.
In a press statement, Ayush Lohia, CEO, Lohia
Auto Industries said, “We understand that this pandemic requires an
extraordinary response hence we are taking the right precautions as the
situation continues to evolve. As a
result, we have asked all our employees to work from home through the end of
March. We have shut down our operations and suspended vehicle production at our
Kashipur facility with effect from March 23, 2020 to March 31, 2020, as a
measure to stop the spread of coronavirus and keeping the safety of employees
as the top priority. We will await further notifications from the government to
resume operations at the plant. We recognise that we are in a dynamic situation
and we are prepared to adjust quickly based on the daily analysis of the
Lohia Group, it may be recalled is also dealing with the mess created by its
alliance with UM Motorcycles, a US based company, which shut its business in
India. UM motorcycles were manufactured in a joint venture at the Lohia plant
in Kashipur. The UM dealers have through the Federation of Automobile Dealers Associations (FADA) filed a case against the Lohia
Group seeking compensation after abruptly
ending its motorcycle operations in India.
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