Hover Automotive calls it quits after termination of Nissan agreement

Two months after the Nissan-Hover agreement went South, Hover Automotive India (HAI) has announced that it will end its operations soon. Hover had a six year partnership with Nissan to distribute the Japanese manufacturer’s cars in India. The Hover-Nissan agreement was one of its kind as all other manufacturers in India appoint their own dealerships.

The break-up of the alliance, which was officially announced on February 17, was due to a number of factors which culminated in the termination of the agreement. Problems started with Hover declining to take deliveries of Nissan’s Evalia in December 2012. Nissan and Hover managed to reach a compromise but insiders at Nissan weren’t too happy with their intermediary. The final blow to the partnership arrived in November 2013 when Nissan announced the introduction of its budget brand, Datsun and said that it would market and distribute the GO themselves.

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The straw that broke the proverbial camels back, the launch of the GO signaled the end of the partnership[/caption]

After a month in court disputing the termination of contract, Hover has revealed that they have asked their 180 strong workforce to look for new jobs as it will be closing down, even though the verdict is still two or three months away.