Hover drags Nissan to court over termination of agreement

A week ago, we reported about Nissan and Hover Automotive India (HAI) parting ways. Immediately following Nissan’s announcement HAI issued a media release stating they are in discussion with the Japanese car maker and it’s not over yet. 

In a surprising turn of events HAI has issued a legal notice to Nissan over the termination of the agreement. "HAI has already exercised legal options available to it, to have the purported termination established as invalid and wrongful," the company said in a public notice

HAI was appointed by Nissan as the Japanese company’s national sales company and sole distributors in India. The association dates back to 2005 when Nissan entered our market. HAI terms this termination of the agreement as invalid and wrongful. 

HAI solely set up the sales network, but the differences began when dealers were unhappy about the poor sales affecting their spare parts and service business. As a result many customers were left with a not so pleasant experience.

The matter is now in the court and both companies would be waiting for the scales to tip in their favour. Watch this space for more on this not so pleasant break-up between Nissan and HAI.

Source: ET Auto

To read about Nissan’s statement on going solo in India click here

To read about HAI’s counter-statement on Nissan’s announcement click here