Nissan has terminated its sales, marketing and distribution agreement with Hover Automotive India (HAI), reported The Economic Times.

However, HAI held the move does not have a legal basis, saying it would “pursue the necessary course of action to protect interests of its employees and stakeholders.”

Nissan said that, from 14 February, the sales, marketing and distribution of the company’s vehicles and parts in India had been transferred to Nissan Motor India. The details of the business structure have not been announced. However, HAI said negotiations with Nissan were on-going, and “it is premature to say any agreement regarding termination has occurred”.

“HAI understands that Nissan wants to move quickly but it is possible only with the cooperation and consent of HAI and we look forward to working with Nissan and are hopeful of an amicable resolution. Until then, HAI expects to continue to be the sole and exclusive distributor for the Nissan brand of vehicles in India.”

In November 2013, Nissan announced it would sell its Datsun vehicles directly and not through HAI.

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