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Hyundai India dealers cry foul over termination of contract

Hyundai terminates dealerships

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

For Representation Purpose Only

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


About the author

Pearl Daniels

Pearl Daniels

Former freelance writer, Pearl Daniels is in the auto industry since 2011, having established herself as a widely read staff writer since 2013. Her keen eye for industry news, daily need to break down latest events, and quest to not miss a single launch detail, gives you the most refreshing morning news on weekdays.

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  • Tejaswini Ukhala

    The company has taken the right step. All such idiotic dealers should be terminated. Taking poor customers for a ride. Good job Hyundai!!

  • ashok kumar

    absolutely right decision,,,,kudos to hyundai,,,,i was supplying automotive paints of a world’s leading brand to ramani hyundai salem TN,,from the beginning,,,i had an agreement with them paying the offered discount upfront by cash,,,still,, they started buying ,,,very low quality paint ,,,cheating both the hyundai company and gullible customers,,,they have not even returned me the outstanding amount,,,in spite of a written agreement,,,ashok kumar,,,kochi