Precision Cars to sue Porsche India over dealership rights

Is this the first of perhaps many repercussions of the April 2012 announcement that the Volkswagen India Group is the sole importer of Porsche?

Precision Cars India (PCI) is suing Porsche India over the appointment of VW Group Sales India as its exclusive importer and distributor in the country. Formerly, PCI was the only official importer of Porsche cars since 2007. After starting with showrooms in Mumbai and Delhi, PCI went on to set up dealerships in Ahmedabad, Chandigarh, Bangalore, Chennai and Hyderabad. 

A PCI representative recently told media that they had not been informed about this development. PCI will cite “illegal breach of contract by the manufacturers” to initiate their lawsuit against Porsche. Meanwhile, there has been no word from the VW-Porsche camp on the issue, except that there is nothing more to add to their public notice.

According to this public notice, w.e.f April 1, 2012 only VW Group Sales India will be authorised to import Porsche cars and appoint Porsche Dealers in India. There are currently three such authorised dealers in Mumbai, Chandigarh and Gurgaon. We can only wonder what happens to the Ahmedabad, Bangalore, Chennai & Hyderabad dealerships. Not to mention, where do Porsche owners from those cities go for service & maintenance?

The notice also warns potential customers to avoid unauthorised dealers as “any such deals made by any person(s) shall purely be at their own risk and Volkswagen Group Sales India Pvt. Ltd. shall not be liable to such person(s) for any consideration rendered or payments made, whatsoever, by them to such unauthorised person(s)/entities.”