Nissan to have its own distribution network?

Nissan announced today that its Indian subsidiary – Nissan Motor India Private Ltd (NMIPL) – has assumed full responsibility for the sales, marketing and distribution of all Nissan-branded vehicles and parts in India, with immediate effect from February 14, 2014. Nissan stated that its agreement with Hover Automotive India Pvt. Ltd. for exclusive sales, marketing and distribution of Nissan branded vehicles and parts in India has been terminated.

Further details about the business structure will be announced in due course. The Datsun brand had its own marketing team and there have been a lot of talks and discussions internally on whether the company should retain Hover as its sales and marketing partner and the Japanese manufacturer has now decided ave its own team in place.

Kenichiro Yomura, Nissan President, India Operations, said: “Nissan is now at a point of maturity in India where the time is right to establish our own marketing and distribution operations. Nissan’s priority will be to ensure a smooth transition from current operations. We remain committed to our customers and will continue to deliver high quality products and services.”

On the other hand, Hover has released a statement saying, “At Hover Automotive India Pvt Ltd (HAI), we would like to inform all concerned that negotiations with Nissan are ongoing at this stage and it is premature to say any agreement regarding termination has occurred. HAI understands that Nissan wants to move quickly but it is possible only with the cooperation and consent of HAI and we look forward to working with Nissan and are hopeful of an amicable resolution. Until then HAI expects to continue to be the sole and exclusive distributor for the Nissan brand of vehicles in India.

For the general benefit of Nissan India’s customers, media and all stakeholders, we would like to reiterate that  Nissan does not have any legal basis for the termination of services of its national sales company- Hover Automotive India Pvt Ltd in India.  The management at HAI has taken strong exception to the announcement this morning by Nissan. HAI reserves all rights and remedies available and will pursue the necessary course of action to protect interest of its employees and stakeholders.”

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