The Indian arm of Japanese auto major Nissan has reportedly, terminated its agreement with Hover Automotive India for exclusive sales, marketing and distribution of Nissan branded vehicles in India. The announcement comes just when Nissan’s low cost brand, Datsun India is readying to launch the its first car in the country, the Datsun Go. Without giving an specific reason, Nissan today said in a statement that its Indian’s arm, Nissan Motor India Pvt Ltd has assumed fill responsibility for the sales, marketing and distribution of all Nissan-branded vehicles and parts in India, with immediate effect from February 14, 2014.
It statement release by Nissan further said “agreement with Hover Automotive India Pvt Ltd for exclusive sales, marketing and distribution of Nissan branded vehicles and parts in India has been terminated” Commenting on the development, Nissan president of India Operations Mr Kenichiro Yomura 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.”
The development follows Nissan's announcement last November that Datsun vehicles would be sold directly through Nissan Motor in India and not its erstwhile partner Hover. At the time of the announcement, Nissan had said Datsun will work primarily with existing dealer investors "who have already demonstrated high capabilities and commitment to the Nissan brand in recent years. This arrangement will, in particular, allow Datsun to rapidly establish a top quality, expand retail network and open the brand to a large segment of the potential market straight from the initial launch. Selling the Datsun GO and future Datsun models through Nissan Motor represents a natural evolution of the company's operations in India, which are well recognised in the market.” global head off Datsun Mr Vincent Cobee had then said.