Hover Automotive India says ‘Nissan does not have any legal basis for the termination of services’

This morning, it was announced Nissan Motor India Private Ltd (NMIPL) had assumed full responsibility for sales, marketing and distribution of all Nissan-branded vehicles and parts in India, with immediate effect from February 14, 2014.

Nissan went on to say its ‘agreement with Hover Automotive India Pvt. Ltd. for exclusive sales, marketing and distribution of Nissan branded vehicles and parts in India has been terminated.’

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Kenichiro Yomura, Nissan President, India Operations, said: “Nissan is now at a point of maturity in India where the time is right to establish our own marketing and distribution operations. Nissan’s priority will be to ensure a smooth transition from current operations. We remain committed to our customers and will continue to deliver high quality products and services.”

Further details about Nissan business structure were to be announced in due course but the update has in fact come from Hover Automotive India.

Statement from Richard Spitzer Acting COO, Hover Automotive India, “At Hover Automotive India Pvt Ltd (HAI), we would like to inform all concerned that negotiations with Nissan are ongoing at this stage and it is premature to say any agreement regarding termination has occurred. HAI understands that Nissan wants to move quickly but it is possible only with the cooperation and consent of HAI and we look forward to working with Nissan and are hopeful of an amicable resolution. Until then HAI expects to continue to be the sole and exclusive distributor for the Nissan brand of vehicles in India.”

He added, “For the general benefit of Nissan India’s customers, media and all stakeholders, we would like to reiterate that Nissan does not have any legal basis for the termination of services of its national sales company- Hover Automotive India Pvt Ltd in India. The management at HAI has taken strong exception to the announcement this morning by Nissan. HAI reserves all rights and remedies available and will pursue the necessary course of action to protect interest of its employees and stakeholders.”

The development doesn’t come as a surprise because just earlier this week, Nissan India January 2014 sales growth was announced and at the time Hover seemed very content with Nissan’s start to 2014.

Commenting on the company’s sales, Richard Spitzer, acting COO for Hover Automotive India (Nissan’s National Sales Company) said, “We are delighted with the reception Terrano has received from the market and its impact on strengthening sales performance since October last year.

“We look forward to carrying this momentum into 2014, supported by models like the new Sunny sedan.”

Mr. Debashis Mitra, executive director operations & advisor to COO, Hover Automotive India said, “We have had a strong start to 2014 with a significant rise in sales year-on-year. This has been achieved against a challenging economic backdrop which has impacted overall growth in India’s automotive sector.
“The improvement in performance has been achieved by the underlying strength of our product line-up, including Terrano, as well as efforts sales and market share through innovative marketing campaigns, expanded retail network and improved sales channel efficiencies.”

There’s no doubt both companies are at loggerheads in a rather love lost Valentine’s Day special. We only hope the development doesn’t effect Nissan India’s sales here.