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Old 15th February 2014, 18:06   #16
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Default re: Nissan India wants its own dealerships, Hover says NO! EDIT: R-I-P Hover

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Originally Posted by Sommos View Post
In this case Nissan has not entered into agreement with the dealers.
All the dealership agreement are with HAI. What will happen to that if HAI refuses to cancel / terminate the agrrement ?
Nope- there always is a clause where dealers can resign at their own will subject to settling the credit etc.

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Secondly, Nissan will have to sign new agreement with all the dealers and that would be time consuming. Will there be any delivery of vehicles to the dealers until all this mess is settled ?
Not a big deal either, getting it signed with all the dealers in their network should not take time if given proper priority. Infact this may help them get rid of any dealer they don't deem fit (infra wise, working capital wise etc.)

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I hope Nissan would not let the customers suffer till all the issues are settled.
This is something Nissan should be careful of. IMO whoever has bought Nissan vehicles have taken a risk, trying out a relatively new and unsettled brand. If they get a bad experience the initial word of mouth will create a huge dent in the brand image.
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Old 15th February 2014, 21:06   #17
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Default re: Nissan India wants its own dealerships, Hover says NO! EDIT: R-I-P Hover

I am not sure if the following incidence is Very high professionalism or pure non enthusiastic effort :

The Nissan dealer in my city gets my call. The individual who received my call tried all the usual stuff like engine cc, features, etc. Just as per the training given to them.
He invited me to dealership for TD and final deal.

Then just a couple of messages, no calls. Note that I did not mention "dont call me".

I felt they lacked the enthusiasm to sell car, and were not well trained how to tackle consumers. When Hyundai, Toyota and Maruti were brought into discussion, he was just speechless. That shows lack of training. No calls later on, nothing.

Maruti dealer Amar Cars : Max. calls. Even offered Rs. 1L for my Baleno. Eager to give TD and, against my wish, visited my home when I was at job.

Maruti Dealer Kiran Motors : Very honest, transparent. Came home for TD too at my convenience ( @6:30 PM ). Got a call for feedback on my inquiry today. Informed about Grand i10 ruling my head, next moment, the lady was asking feedback on swift and Ritz and why Grand i10. Thats truly nice.

Toyota : Came home at 7 PM for TD. Well informed and honest.

Hyundai : Came home at 7:30 PM for TD. No hurry to go home and no pressure.

Nissan : No calls, nothing. All others were ready to come down to even my workplace at my timings for TD.

I personally do not like teams following up with me, but lack of motivated teams like those selling Nissan cars create a gap in trust I believe. Somewhere down the line, I think the end user thinks if this is selling attitude, what would be service attitude ?

Nissan has a highly competent hatchback in form of Micra, a best in class space offering in form of Sunny and now the Duster. All under Rs. 15 lakh, and here is where the volumes are. But just as I felt, even during conversation, either the team was not motivated and/or lacked training. This has affected Nissan hard. Changing image would be tough, and it would be really nice for Nissan not to bring their "conflict of Interest" or dispute in public. It should be restricted to board room, not open on the Internet.

Last edited by aaggoswami : 15th February 2014 at 21:08.
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Old 15th February 2014, 21:20   #18
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Default re: Nissan India wants its own dealerships, Hover says NO! EDIT: R-I-P Hover

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Changing image would be tough, and it would be really nice for Nissan not to bring their "conflict of Interest" or dispute in public. It should be restricted to board room, not open on the Internet.
If they can add more dealers and improve on sales and service then it will not be tough to change the image. They have best in class products which are flaw less and not much has been reported about poor product quality or untimely breakdowns.

Adverse reports have been on the sales and service part.

I am sure Nissan would have served some kind of show cause notice or agreement termination notice to HAI before making an announcement. They must have been observing the negative trend towards their brand because of HAI for quite a while and must have issued them regular warnings from time to time.

When HAI would have thought that they can arm twist them, Nissan came out in public.

May be they want to give a signal to public at large that they are aware of mishandlings at HAI and are serious towards Indian market.

Even Fiat has been seen experimenting, and are still selling cars. I feel that the product of Fiat suffers more breakdowns than Nissan.
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Old 15th February 2014, 21:24   #19
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Default re: Nissan India wants its own dealerships, Hover says NO! EDIT: R-I-P Hover

Just out of curiosity, why did a global company like Nissan not enter Indian Market directly like all other auto majors? Why was there any need to appoint a sales agent for a brand like Nissan.

The only guess, I can make is that they where afraid of commitment and decided to use a borker/agent, now I guess they realized the market potential and want to cut him out.
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Old 16th February 2014, 08:58   #20
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Not sure whether Nissan wants to communicate their new customer care number or literally scare people into thinking they've made a wrong decision by buying a nissan. Today mornings paper had this.

Nissan could have managed a half page ad at the least unlike the government style calling for tender classified that they put up.
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Last edited by Ford5 : 16th February 2014 at 09:03.
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Old 16th February 2014, 09:17   #21
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Default re: Nissan India wants its own dealerships, Hover says NO! EDIT: R-I-P Hover

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Not sure whether Nissan wants to communicate their new customer care number or literally scare people into thinking they've made a wrong decision by buying a nissan. Today mornings paper had this.
There is nothing in this notice that scares people, but it is a welcome step which cautions their dealers who have been appointed by HAI.

A prospective buyer can also choose to wait and then take an informed decision. This is a welcome step. The new customer care number can come handy for people who are either in the middle of a transaction with HAI/Nissan or are on the verge of conducting. I can foresee a smooth sail for Nissan after this termination of agreement. They may encounter some teething problems for a couple of months but overall they have a win- win situation.

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Nissan could have managed a half page ad at the least unlike the government style calling for tender classified that they put up.
Till the time it is visible and can be noticed, it is ok. Message should be loud and clear, size and positioning has nothing to do with it.
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Old 16th February 2014, 11:30   #22
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Default re: Nissan India wants its own dealerships, Hover says NO! EDIT: R-I-P Hover

What happens to those people who have already paid the booking amount?

Since Nissan wouldn't give those dealers the vehicles, HAI has an opportunity to harass these customers, right? This would further spoil Nissan's name then.
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Old 16th February 2014, 17:53   #23
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Originally Posted by amolbh View Post
What happens to those people who have already paid the booking amount?

Since Nissan wouldn't give those dealers the vehicles, HAI has an opportunity to harass these customers, right? This would further spoil Nissan's name then.

The dealers want to deal with Nissan directly, chances are the dealers will honour commitment or Nissan will bite the bullet and honour existing commitments

Last edited by ajmat : 17th February 2014 at 10:47.
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Old 16th February 2014, 19:04   #24
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Default re: Nissan India wants its own dealerships, Hover says NO! EDIT: R-I-P Hover

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Originally Posted by ajmat View Post
The dealers want to want with Nissan directly, chances are the dealers will honour commitment or Nissan will bite the bullet and honour existing commitments
Last year dealers protested against HAI for warranty claims and other issues related to spares. Also Nissan shifted road side assistance to TVS after numerous complaints from customers & dealers.
Also HAI is not a stockist, only invoicing as a agent to dealers. So in any case if Nissan is willing to deal directly with dealers,HAI cant do much as most of Japanese companies contracts/exclusivity agreements are on yearly basis. Also they are clever enough to have sufficient clauses related to contract termination.
Also, instead of worrying, the prospective customers must feel relieved with HAI termination.
If Nissan provide right kind of service support they will definitely grow in Indian market.

Last edited by Raosaheb Desai : 16th February 2014 at 19:06. Reason: Spelling
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Old 17th February 2014, 10:18   #25
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Default re: Nissan India wants its own dealerships, Hover says NO! EDIT: R-I-P Hover

From an existing Nissan Sunny's owner ...

... how does this impact servicing of existing Nissan vehicles, processing warranties etc if required?
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Old 17th February 2014, 10:54   #26
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Default re: Nissan India wants its own dealerships, Hover says NO! EDIT: R-I-P Hover

As some businessman once told me, sales & marketing is where the profit is. If you outsource that, then you also outsource your profits.
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Old 17th February 2014, 14:54   #27
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Default re: Nissan India wants its own dealerships, Hover says NO! EDIT: R-I-P Hover

In most of such relationships, like the one between HAI and Nissan, a large number of cars as well as spare parts inventory moves on supplier’s credit, this simply means there is a possibility of non-transparency by HAI in terms of monies recovered from dealerships (from sales of cars) and final remittance to Nissan.

If this ends up dirty then probably:

- Nissan may have to foot the unrecovered sums for invoicing carried out by HAI (something similar happened with Tata’s for the cars used during commonwealth games, wherein under invoicing has been done at dealer end for sale of used vehicles and losses were passed on to TML)

- Even for this non-recovered payments, the tax liabilities as a manufacturer will be with Nissan

- HAI will not be at loss if the matter is taken to the courts, as they can get stay quite very easily being the first party in this case. This might put Indian sales on a stand still as the present connect between Nissan and Dealers is only through HAI

- Nissan may have taken enough precautions while entering into an agreement with HAI (including termination and exit clauses) whereas it is unlikely that the dealers are equally smart in their contracts with HAI. It may simply mean that exit of dealers might be difficult and thus the sales; warranty claims etc may take hit

- One also need to understand as to why Nissan ventured in India through HAI

According to me, this is not going to be easy, yet if Nissan is serious, they will find a way out soon.

In the mean time, they can also exercise their relationship with Renault for necessary assistance to Nissan owners in terms of general service and basic warranty (for shared part inventory).

Cheers to Nissan.
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Old 17th February 2014, 15:24   #28
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Default re: Nissan India wants its own dealerships, Hover says NO! EDIT: R-I-P Hover

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Originally Posted by mints21 View Post
There is nothing in this notice that scares people, but it is a welcome step which cautions their dealers who have been appointed by HAI.
This is legal notice some times required by law which has to be published in public news papers. At this point it looks like Nissan is not interested about informing potential customers or Nissan car owners. Lets hope they inform their customer in future through media and honor warranty of their vehicles under new sales and service network.

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Originally Posted by aaggoswami View Post
I am not sure if the following incidence is Very high professionalism or pure non enthusiastic effort :

The Nissan dealer in my city gets my call. The individual who received my call tried all the usual stuff like engine cc, features, etc. Just as per the training given to them.
He invited me to dealership for TD and final deal.

Then just a couple of messages, no calls. Note that I did not mention "dont call me".
I fail to understand, why do you want marketing people to keep calling you day and night just to buy their car? These are exactly the kind of people I never want to deal with. 1 or 2 follow-ups are enough to show you that they are committed in selling you the car. I really get sick of people and brand likes these who will put your mobile number in their automated never ending SMS and email lists and will bombard you with all kind of spam messages, forever!

My advice to manufactures, 2 followups are enough then just delete the numbers and email addresses.

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Originally Posted by aaggoswami View Post
Maruti dealer Amar Cars : Max. calls. Even offered Rs. 1L for my Baleno. Eager to give TD and, against my wish, visited my home when I was at job.
If this had happened to me, I would have been very worried and had talked to the highest authority in dealership and have noted down details of that person for any future police FIR. You should really stay away from such people, you never know what kind of intention such people may have.

Last edited by Max : 17th February 2014 at 15:33.
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Old 17th February 2014, 17:05   #29
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Default re: Nissan India wants its own dealerships, Hover says NO! EDIT: R-I-P Hover

I hope this brings some good news as far as customers are concerned. My in-laws have a Micra and it had had multitude of issues ranging from caliper noise, rear suspension sound and finally the A/C condenser going for a toss. The first two issues saw the car visiting the garage once every 3 months to get it resolved. Every time I go, the SA says "Need to get approval from Hover" and from my experience, Hover doesn't care much about brand protection.
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Old 17th February 2014, 17:20   #30
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Default re: Nissan India wants its own dealerships, Hover says NO! EDIT: R-I-P Hover

Looks like Nissan has realized that it can succeed with a mass market product like Datsun. They really want to sell numbers and there is no way that Hover can offer the support and service that is needed for a mass-market product. We have already seen that good products have been relegated due to poor service experiences.

Eventually, this makes for a good commitment on part of Nissan for the Indian market and things should improve for existing Nissan customers from here on. There may, however, be some growing pains for all the stakeholders including Nissan and Nissan customers.
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