Team-BHP > Team-BHP Reviews > Indian Car Dealerships


Reply
  Search this Thread
134,277 views
Old 27th December 2017, 10:33   #31
BHPian
 
Join Date: Oct 2017
Location: PUNE
Posts: 79
Thanked: 141 Times
re: Paid 15 lakhs for an Isuzu, but dealer shuts down. EDIT: Owner finally gets his V-Cross

Quote:
Originally Posted by i74js View Post
There have been multiple cases of dealership fallout reported in the last one year. The trend is also getting pronounced with marginal market players.
This is very true. We are seeing an increase in this trend. It is very difficult for dealers of some brands to survive only on sales these days! The support offered by the parent company is not enough in some instances as well. I guess it is a vicious circle for companies, as getting dealers for their brand is a challenge, and hence they settle for anyone who approaches them. It ultimately leads to such situations. Viraaj is also the Pune dealer for Skoda. I guess this explains their attitude perfectly Their approach for the FORD dealership was also similar. I have had bad experiences at both their Skoda and Ford showrooms when I had made an enquiry and wanted a TD!

Also, the way ISUZU is handling the situation is simply not right!They surely will learn the hard way, just like Kawasaki!
AdiSolEn is offline  
Old 27th December 2017, 10:52   #32
BHPian
 
anshumandun's Avatar
 
Join Date: Oct 2014
Location: Bangalore
Posts: 458
Thanked: 2,762 Times
re: Paid 15 lakhs for an Isuzu, but dealer shuts down. EDIT: Owner finally gets his V-Cross

Come on Isuzu, are you blind to the Indian cars market?

There is Maruti that makes good cars but holds more than 50% market share in India because of their incredible service and very tight control over their dealers. I remember from a recent post of how a Baleno was not serviced and how Maruti made efforts to correct the situation.

And then there is Skoda that makes excellent cars but has less than 1% market share in India because they got a bad reputation for escaping responsibility for their rogue dealers.

So pull up your socks Isuzu, owe up the responsibility and do what needs to be done at this point of time for the customer. A good gesture will go a long way in building a reputation and a fan base for your niche products.
anshumandun is offline   (2) Thanks
Old 27th December 2017, 11:13   #33
Distinguished - BHPian
 
Join Date: Sep 2008
Location: --
Posts: 3,549
Thanked: 7,233 Times
re: Paid 15 lakhs for an Isuzu, but dealer shuts down. EDIT: Owner finally gets his V-Cross

Isn't the dealer supposed to pay the company for the cars? Sure dealers might have their margins but ultimately most of the payment goes to the company isn't it? How can they wash their hands off the matter?

When Isuzu published the notice, after that day, if an individual gets conned, I can understand their stand. But, when the dealership is active, up and running, how in the world, can a customer like me gauge the financial health of the setup?

15 lakhs may not be a big deal for a company like Isuzu. Heck, they might be spending double/triple that on the various events they organize across the country for "building their brand". But this attitude towards the customers is something which can destroy all brand building efforts. Few word of mouth recommendations count more than these events. If a bad perception forms, you are doomed. Look at Skoda for inspiration - 15 years in the market and less than 1% market share.

The sad thing is, doesn't seem like an isolated incident. Isuzu doesn't really know how to handle their customers/solve their problems. Here's what an BHPian mani shared on the official review thread - http://www.team-bhp.com/forum/offici...ml#post4193459.

Clearly, customer satisfaction doesn't figure anywhere in Isuzu's priority list. Sad.
Dry Ice is offline   (4) Thanks
Old 27th December 2017, 12:15   #34
BHPian
 
saurabh2711's Avatar
 
Join Date: Feb 2010
Location: Pune, Bhopal, Indore
Posts: 350
Thanked: 680 Times
re: Paid 15 lakhs for an Isuzu, but dealer shuts down. EDIT: Owner finally gets his V-Cross

What a sorry state of affairs & irresponsible response from Isuzu, stating they are not responsible. That car seems to have its own fan following & quite a few can be seen on roads these days. The money paid to the dealer will eventually land in Isuzus's accounts, after cutting the dealer margins/profits. It is Isuzu's product that Mr. Tapaswi wanted to buy, through an "Authorized Dealer". Don't understand & accept the response from the company.

However, why was the money released, without confirming the current state of the booking with dealer (already asked by many).

As already suggested, social media can be the biggest help to highlight the issue.

Quote:
Originally Posted by i74js View Post
There have been multiple cases of dealership fallout reported in the last one year. The trend is also getting pronounced with marginal market players...... This clearly indicates one thing that several manufacturers with small %age of overall market share do not keep sufficient security deposit against the inventory provided to the dealership.
Though this can be on a different reasons altogether, but even the bigger brands like Tata may be on the same path & have seen major dealers shut down. Pandit Auto can be the biggest example. They have shut down its Bhosri workshop, & almost entire staff is now with Panchjanya motors.

Is DSK also an example of this?

Regards,
Saurabh

Last edited by saurabh2711 : 27th December 2017 at 12:16.
saurabh2711 is offline  
Old 27th December 2017, 12:23   #35
BHPian
 
Join Date: Aug 2014
Location: Mumbai
Posts: 255
Thanked: 535 Times
re: Paid 15 lakhs for an Isuzu, but dealer shuts down. EDIT: Owner finally gets his V-Cross

Legally, I think he can make a case that the dealer was an 'agent' of Isuzu. While on paper Isuzu's lawyers must've entered lengthy documentation with the dealer for this, the customer is not privy to these contracts and does in fact enter into the transaction based on the company's brand value, warranty, etc.

If he can be proved an Agent, then the Principal i.e. Isuzu will be responsible to fulfil its agent's obligations to a third party and will have to deliver the vehicle in addition to compensation for the agony.
aashishnb is offline   (4) Thanks
Old 27th December 2017, 12:56   #36
Senior - BHPian
 
Join Date: Oct 2009
Location: BANG-A-LURE.
Posts: 1,197
Thanked: 4,657 Times
re: Paid 15 lakhs for an Isuzu, but dealer shuts down. EDIT: Owner finally gets his V-Cross

Quote:
Originally Posted by i74js View Post

I am scared and so will be other members. Are there any set procedures that can be defined in the law for transactions beyond certain threshold and why in this case a customer court is being approached? this is clearly criminal case and not just deficiency of service.
That is exactly my point.It is a clear cut case of treachery+cheating and the petitioner should have opted for Criminal remedy instead of Civil.

I am sure someone would have would misguided the petitioner on the recourse.

Waseem.

Last edited by SILVERWOOD : 27th December 2017 at 12:57.
SILVERWOOD is offline   (1) Thanks
Old 27th December 2017, 14:22   #37
Newbie
 
Join Date: Apr 2017
Location: New Delhi
Posts: 7
Thanked: 21 Times
re: Paid 15 lakhs for an Isuzu, but dealer shuts down. EDIT: Owner finally gets his V-Cross

This is so sad to hear. The problem is that India is far behind other countries, mainly the west and Europe, when it comes to protecting the consumer through consumer laws. Cases like these aren't limited to the automobile industry, but are prevalent throughout the country. As there are no consumer laws, the companies happily wash their hands off such instances. Although not as damaging as this, two such cases have happened to me as well that I can remember, apart from countless others.

1. The day I took delivery of my GT TSI, the boot release lever wasn't functioning, that was a small issue. But all four doors were leaking water like a tap when the car was washed. Anywhere else, such structural issues would have meant the car was immediately replaced. This wasn't the only issue the car had, and some are still present today.

2. The other is more recent. A new MacBook pro had dead pixels on it. The showroom made the sale and didn't care after that. The service centre was very cooperative but, shouldn't a brand new laptop that developed faults within two days hair been replaced?

The interesting thing is, on the apple website, it states that apart from the warranty, customers are also protected by their countries specific customer protection laws. India has none.

I really hope this is sorted soon and you either get your car, or get your money back and take your business elsewhere. On a larger scale, there needs to be an ammendment of the customer laws in this country. The consumer has no rights.
hatlessgovi is offline  
Old 27th December 2017, 14:52   #38
Senior - BHPian
 
Join Date: Oct 2009
Location: BANG-A-LURE.
Posts: 1,197
Thanked: 4,657 Times
re: Paid 15 lakhs for an Isuzu, but dealer shuts down. EDIT: Owner finally gets his V-Cross

Quote:
Originally Posted by hatlessgovi View Post
This is so sad to hear.

1. The day I took delivery of my GT TSI, the boot release lever wasn't functioning, that was a small issue. But all four doors were leaking water like a tap when the car was washed. Anywhere else, such structural issues would have meant the car was immediately replaced. This wasn't the only issue the car had, and some are still present today.
We do not have Anti Lemon laws in our country to protect consumer rights.

I am trying to do something on this.

http://www.team-bhp.com/forum/indian...ml#post4247715

Waseem.
SILVERWOOD is offline   (13) Thanks
Old 27th December 2017, 15:55   #39
BHPian
 
Alfresco's Avatar
 
Join Date: Jan 2017
Location: RJ-UK
Posts: 112
Thanked: 427 Times
re: Paid 15 lakhs for an Isuzu, but dealer shuts down. EDIT: Owner finally gets his V-Cross

I am repeating here what I have written on many other threads:
Dealerships are extremely capital intensive with low returns. Even the staff costs are very high. Companies just try to put all the financial liability on the dealer, ignoring the damage it inflicts on the brand image.
Move selling online and allow multi-brand service outlets or, at the very least, Authorised Service Centres like Maruti's.
This will result in a win-win situation for all, especially the non-luxury brands having low volumes.
Alfresco is online now  
Old 27th December 2017, 16:33   #40
BHPian
 
Join Date: Dec 2017
Location: MUMBAI
Posts: 77
Thanked: 135 Times
re: Paid 15 lakhs for an Isuzu, but dealer shuts down. EDIT: Owner finally gets his V-Cross

Just sharing from a layman perspective a few relevant thoughts:
1) It is almost standard practice for a corporate to first up issue a denial in consumer court, you should file a fitting rebuttal to their submission and keep up the pressure.
2) As many others state here, social media exposure of the issue will go a long way to get you a resolution.
3) Having initiated consumer forum action, you as a victim are still free to (and in fact MUST) go ahead and file a cheating complaint against the dealer and also name the manufacturer as a respondent, as you have documentary evidence showing that they are aware of your order being not fulfilled by the dealer.
//HB is offline  
Old 27th December 2017, 17:10   #41
BHPian
 
behaln's Avatar
 
Join Date: May 2013
Location: DELHI
Posts: 234
Thanked: 230 Times
re: Paid 15 lakhs for an Isuzu, but dealer shuts down. EDIT: Owner finally gets his V-Cross

Its totally unethical. File a criminal case against ISUZU and the dealer.

Isuzu had appointed the dealer, they must have done some background check of the financial viability of the dealer. Isuzu as the parent company is equally at fault.

Their image will definitely take a hit post this incident.
behaln is offline  
Old 27th December 2017, 17:21   #42
Senior - BHPian
 
Join Date: Oct 2009
Location: BANG-A-LURE.
Posts: 1,197
Thanked: 4,657 Times
re: Paid 15 lakhs for an Isuzu, but dealer shuts down. EDIT: Owner finally gets his V-Cross

I spoke a senior lawyer and he suggested that the the petitioner should file an FIR under IPC 406 for breach of trust and 420 for cheating without any more delay.He should file name the dealer and the company in the FIR.

The case in consumer court is only to recover money and the petitioner is at liberty to file a criminal case as well.

Waseem.

Last edited by SILVERWOOD : 27th December 2017 at 17:22.
SILVERWOOD is offline   (12) Thanks
Old 27th December 2017, 20:34   #43
BHPian
 
Join Date: Apr 2013
Location: Mumbai
Posts: 51
Thanked: 91 Times
re: Paid 15 lakhs for an Isuzu, but dealer shuts down. EDIT: Owner finally gets his V-Cross

What a bummer by Isuzu India!
But, why make full payment for a car which you haven't even seen? One could always make the payment through a demand draft which is to be handed over only on the day of delivery and after completing the PDI, and no dealer in general denies delivering the vehicle against a DD if supported with Bank letter/certificate.
Heck I won't even trust a Suzuki dealership in this regard, let alone the Isuzus of the world.
Avalanche2409 is offline   (4) Thanks
Old 27th December 2017, 23:00   #44
Newbie
 
Join Date: Jan 2014
Location: Chennai
Posts: 4
Thanked: 19 Times
re: Paid 15 lakhs for an Isuzu, but dealer shuts down. EDIT: Owner finally gets his V-Cross

Dear Shrivardhan,

What you have undergone is truly unfortunate and I hope no one has to undergo this ordeal. I understand that you have initiated proceedings before the consumer court. I have not gone through your complaint. However, being an attorney for 15 years, I assume the grounds would range from unfair trade practice, unjust enrichment, deficiency in service, recklessness, so on and so forth. If your attorney has not advised you on initiating criminal proceedings against Sai Sakshi Auto World Pvt Ltd and its directors, I would strongly urge you to consider the same. The ingredients of criminal breach of trust, cheating and criminal conspiracy are prima facie apparent in your case as far as the dealer is concerned. You should also include Isuzu. Investigation will reveal if Isuzu is part of the criminal conspiracy or not. I feel this would be a far more effective remedy than the consumer complaint. Btw, both can go on simultaneously and you need not withdraw one to initiate the other. Best of luck. Hope you see the colour of the coin at the earliest and hope the bandicoots are punished for their criminal acts.
Aasim Shehzad is offline   (18) Thanks
Old 28th December 2017, 01:10   #45
BHPian
 
Join Date: Nov 2009
Location: pune
Posts: 330
Thanked: 88 Times
re: Paid 15 lakhs for an Isuzu, but dealer shuts down. EDIT: Owner finally gets his V-Cross

This is really sad. Im really lucky i did not have to go thru any of this as i purchased my V cross from the very same dealer in May. I have also heard horror stories of customers paying for insurance thru the same dealer but no insurance was purchased by them they figured it out when they went to renew the insurance, imagine if the customer was in a accident and had to claim insurance. I was lucky to purchase my own insurance online.

Im sure ISUZU is aware of this foul play by the dealership and should help the customer.
davids4x4mm550 is offline  
Reply

Most Viewed
Thread Tools Search this Thread
Search this Thread:

Advanced Search

Copyright ©2000 - 2024, Team-BHP.com
Proudly powered by E2E Networks