Hyundai India dealers cry foul over termination of contract

Hyundai India has brought the curtains down on four of its company dealerships in Tamil Nadu in South India. These include SKBR Hyundai in Madurai, Susee Hyundai in Vellore, Ramani Hyundai in Salem and Suryabala Hyundai in Coimbatore. Hyundai India says they have been shut down due to poor quality of service, but the dealers say otherwise.

Hyundai terminates dealerships

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Hyundai has a total of 24 dealers in Tamil Nadu, out of which the company has cancelled dealership to four dealers. These four dealers are on the opinion that the termination of contract with Hyundai is abrupt and arbitrary as they were not given a chance to offer any explanation as to why they fell short in performance and services rendered.

Dealers opine that the company fixed huge targets while the market was not big enough to allow them to meet these goals. The dealers who invest approximately INR 5 crores on land and building also have between 60 to 100 employees and hence will suffer severe losses in this termination of contract. Hyundai, on their part state that they were left with no other recourse but to cancel the contract which was done after detailed consideration.

It was earlier in August 2013 that the company decided to revamp its dealer network when some dealerships in west zone were under attack. However Hyundai Dealers Forum had approached Ministry of Heavy Industries to intervene. Hyundai India has at present a total of 393 dealers, increasing numbers each year by 20-30. The past two years have seen 50 new dealers added to their networks.

via Times of India