Nissan Motor India is locked in a faceoff with its dealers because of which Nissan dealerships are learnt to have stopped taking supplies of vehicles in the last one week.
The dispute is over the issue of Nissan's master franchisee Hover Automotive India (HAI). The confrontation led to Nissan dealers forming a separate forum — Nissan Dealer Forum — and opening communications with Nissan Motor Japan, independent of HAI.
Sources also say the Nissan India management has now initiated discussions with its dealers on the issue and will likely address their concerns at a conference on October 30 in Chennai.
When contacted, a Nissan India spokesman skirted the dispute and said in an email reply : "Nissan entered the Indian market in 2005 and, since then, we have been working in close partnership with HAI to swiftly and successfully expand our business. Annual sales have tripled; we have launched five all-new models including the locally-produced Micra, Sunny and Evalia; and our dealership network has expanded rapidly to cover nearly 70% of the market."
To ensure high service standards, the spokesman said, "We continuously review any areas of concern and apply remedial action to achieve our goals in terms of dealer support and world-class customer satisfaction. Our relationship is stronger and HAI continues to work diligently to help drive our performance in one of our most strategically important world markets and further expand our sales and marketing initiatives in India."
Nissan dealers are upset with the company's 'step-down approach' of a master franchisee which they claim can't work here. The bone of contention is apparently some issues of sales tax and Nissan's focus on exports . The dealers are upset that the company is focusing more on exports rather than domestic sales. Dealers say they have created workshop facilities that are lying unused due to low domestic sales.
Typically, a dealer makes money on service and spares of vehicles sold rather than sales of new cars. Sources say Nissan dealers feel alliance partner Renault is better at supporting its distribution network with a good campaign and aggressive product launches.
STUCK IN WRONG GEAR
Company's dealers say Nissan's step-down approach of a master franchisee in Hover Automotive India doesn't work Dealers also claim workshops are lying unused due to Nissan's focus on exports A 'Nissan Dealer Forum' has been formed that is now in direct talks with Nissan Motor Japan, without HAI. Nissan dealers refuse to take vehicles - The Economic Times
Even i never understood the concept of Master Franchisee in automobile industry. If the concept was so good then why didn't Renault follow the same direction?