Nissan and Hover Automotive deal not over yet?

Nissan and Hover are headed for a split, as was reported by us yesterday. Though Nissan has gone ahead and said it, Hover Automotive India (HAI), the national sales company of Nissan India, begs to differ. 

HAI has refused to acknowledge the split with Nissan India. HAI released a statement yesterday evening which reveals that both companies are in the process of negotiations and it is too early to say that the contract has been terminated. 

The statement issued also says that Nissan can move ahead with its decision only with the “cooperation and consent” of HAI. Until then HAI will continue to be the sole and exclusive distributor for Nissan branded vehicles in India.

Richard Spitzer, acting COO, Hover Automotive India, says Nissan does not have any legal basis for the termination of HAI’s services. Mr. Spitzer says that HAI will pursue the necessary course of action to protect the interest of its employees and stakeholders.

Things aren’t looking too sunny for Nissan after they declared a split from HAI, the least they might expect now is a legal battle. Nissan, yesterday, also announced they will bring in new models by 2016-17. We will wait and see further developments in this issue.

Source: IAB

To read about Nissan's future plans for India click here

To read about our last report on this development click here