Without specifying reasons, the company said in a statement that its Indian subsidiary - Nissan Motor India Private Ltd (NMIPL) - has assumed full responsibility for the sales, marketing and distribution of all Nissan-branded vehicles and parts in India, with immediate effect from February 14, 2014.
It further said "agreement with Hover Automotive India Pvt Ltd for exclusive sales, marketing and distribution of Nissan branded vehicles and parts in India has been terminated."
Further details about the business structure will be announced in due course, the company said.
Comments from Hover could not be obtained as calls to spokesperson remained unanswered.
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The development follows Nissan's announcement last November that Datsun vehicles would be sold directly through Nissan Motor in India and not its erstwhile partner Hover.
"Selling the Datsun GO and future Datsun models through Nissan Motor represents a natural evolution of the company's operations in India, which are well recognised in the market," Global Head of Datsun Vincent Cobee had then said.
Nissan, which was incorporated in India in 2005, had appointed Hover Automotive India as its national sales company, acting as the sole and exclusive distributor for managing the marketing, sales, after-sales service and training & dealer development functions for the entire Indian territory.
However, in the recent past their relationship was under strain as dealers were unhappy as poor sales hurt their volumes of service and spare parts sales.