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