Nissan dealerships are believed to be refusing deliveries of vehicles from Nissan Motor India for a week now due to a face-off with the company over its master franchisee Hover Automotive India (HAI).
Nissan dealers have formed a new forum – Nissan Dealer Forum – and have started communicating with Nissan Motor Japan without going through HAI. Sources indicate that Nissan India management is discussing the issue with the dealers and is likely to address the issue at a conference in Chennai today.
A spokesperson for Nissan India avoided commenting on the issue and mentioned in an email to a leading newspaper that Nissan had successfully expanded its operations in partnership with HAI since its India entry in 2005. He further wrote that annual sales had tripled, five all-new models had been launched (of which the Micra, Sunny and Evalia were locally produced), and the dealer network now covered almost 70% of the market. He also mentioned that the company continuously reviews dealer concerns and takes action to achieve its targets in terms of supporting its dealers and providing customer satisfaction. The company believes its relationship with dealers has strengthened with time, and HAI is working closely with Nissan India to drive its performance in India.
Nissan India dealers are believed to be dismayed by the ‘stepdown approach’ of appointing a master franchisee, an approach they believe to be unsuitable for India. Discord exists over sales tax issues and the company’s alleged focus on exports as against the domestic market. Dealers complain that their workshop facilities are unused due to low sales in the domestic market. A dealer normally makes more money on spares and service of already-sold vehicles, rather than on sales of new vehicles. Nissan India dealers are believed to be of the opinion that the company’s alliance partner Renault uses a good campaign and product launches to support its dealer network better.
