Nissan Motor India, the Indian subsidiary of the Japanese automobile manufacturer Nissan is having trouble with its dealers over the issue of sales tax with its master franchisee Hover Automotive India (HAI). The company’s dealers are also dissatisfied with its focus on exports rather than domestic sales.
To ward off further trouble, the Japanese carmaker initiated discussions with the dealers at a conference on October 30, 2012 which took place in Chennai. According to a company spokesperson, Nissan has been working with HAI to expand its business in India since 2005. With the support of HAI, the carmaker’s annual sales have tripled and it has achieved the launch of five car models in India, he added.
The dealers have stopped taking deliveries of car models from Nissan to protest against the company’s bigger focus on exports rather than on sales in the domestic market. Dealers have reported that the low domestic sales have left their workshops unused. The major portion of a dealer’s earnings is accounted for by the profit margins on service and spares of car products.