Hover drags Nissan to court over termination of agreement

Hover Automotive India (HAI) has dragged Japanese carmaker, Nissan to court over the termination of the agreement, which appointed HAI as Nissan's national sales company and the sole distributors of Nissan vehicles in India. HAI terms the termination of the agreement as invalid and wrongful.

HAI handled all the marketing and sales operations of Nissan. The company appointed the dealers and was responsible for the training of the sales and service staff. However, poor sales, unhappy dealers and unhappy customers caused a rift in the relations of the two companies.

This rift became evident, when the manufacturer decided to sell vehicles wearing the Datsun badge directly, through its own dealerships. Last week, Nissan announced that it was terminating its agreement with HAI (link to news article) and would, henceforth, handle all operations on its own. HAI reacted by stating that it was hopeful of an amicable resolution. It also stated that Nissan did not have the legal basis for the termination of its services (link to news article).

Source: Economic Times