Nissan India to invest in Hover Automotive
The Japanese auto giant, Nissan Motor has been said to be in talks with its distribution partner in India, Hover Automotive to buy some stake in order to enhance its dealership network. Hover Automotive currently manages the entire sales, marketing and dealer-development for Nissan in India. Once the investment takes place, Hover will become Nissan Motor India’s national sales company.
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Some senior executives of Hover are said to be in Japan to discuss the structure and norms of the agreement, which is considered to be in the final stage. There will be a change in working and management without amending the current operations that include marketing and sales. The idea behind this investment and securing a minor stake is not anything but for putting couple of Nissan’s representative on the board of Hover, so that future strategies can be planned mutually. It clarifies the intentions of Nissan very clearly, that how keen they are to go to next level.
The new business format will empower Nissan to directly bill its cars to dealers with Hover, without paying a fee to Hover additionally for handling the entire business like before. There are people in the Industry who says, Hover has had frequent changes in its top management in India in last two year, which too has somehow restricted Nissan’s growth upto a degree, so this investment is in the direction to be in a position to get things right. However, the month of June has been a remarkable one for Nissan India; it has recorded its best ever sales figures in the month of June since its entry into the Indian market.
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