Hyundai shuts four dealerships

  • Jul 8, 2014
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Hyundai Motor has recently terminated four dealerships in the southern part of India owing to poor quality of service

Hyundai Grand i10

The four dealerships which the Korean carmaker decided to end its business relations with are SKBR Hyundai in Madurai, Susee Hyundai in Vellore, Ramani Hyundai in Salem and Suryabala Hyundai in Coimbatore. Reports suggest that these four dealerships were suspended in the past six-eight months.

According to dealers, each dealer invests approximately Rs Five crore (excluding land and building) while setting up a showroom. Cancellation of contract can put the dealer’s whole investment at stake. Hence, dealers state that a better communication is required from the company’s end before such a step is taken.

Hyundai spokesman, however, states that cancellation of contract or any action on such dealers is done after due diligence. Dealership agreement includes the process of cancellation of contract and arbitration.

The Korean carmaker has also stated that every year the company increases the number of dealerships in India by 20-30 numbers. Hyundai states that it has 393 dealerships, and claims that most of its dealers are happy and strongly associated with it.

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