Porsche faces a law suit from its erstwhile distributor, Precision Cars India

Saturday 07 July 2012, 11:48 AM by

The German luxury auto giant, Porsche’s distributor is facing some hard times in the country with its previous associate Precision Cars India (PCI). The latter has dragged the car maker to court because of its venture with Volkswagen (VW) Group Sales India as the solitary importer. While, the Indian subsidiary of Porsche has subjected a public notice mentioning that VW Group Sales India is the only sole importer of Porsche cars and has asked customers not to entertain any other distributor regarding the same. Challenging the aforementioned statement, PCI declared the Porsche's act dishonest and referred it as a breach of contract.

Elaborating the statement, a spokesperson for PCI quoted, “Precision Cars India Pvt Ltd has initiated proceedings before jurisdiction forums against illegal and actions in breach of contract taken by the manufacturers.”

However, he refused to share any other information and comment further on the notice issued by German sports car maker, which stated that only three distributors in Mumbai, Gurgaon and Chandigarh are the official dealers of the company. He further added, “The matter is subjudice.”

Stating his views on the issue, a spokesperson of Volkswagen India said that the company is in no mood to add anything to the public notice issued by Porsche. The public notice states, “We request members of the public not to deal with any person(s)/entities apart from those expressly mentioned above (the three dealers) for sales or service relating to the Porsche brand vehicles in the Republic of India.”

In April 2012, Porsche declared VW Group Sales India as its official importer in the country saying that the company anticipates positive sales growth in its portfolio in the Indian auto market. Earlier in 2007, the auto maker started distributing its models in the Indian market through PCI with the inauguration of its two new showrooms in Mumbai and Delhi.

From the time PCI expanded the presence of German auto marque in India with showrooms in seven cities, including Ahmedabad, Chandigarh, Bangalore, Chennai and Hyderabad. On other hand, on 6th July 2012, Volkswagen AG came up with an agreement to get hold of the remaining 50 per cent stake in Porsche by the initials of August. The merger was planned in 2009 after the failure of Porsche when it tried to hold control over Volkswagen and ended up with huge debt.

Nothing is clarified since the Porsche’s Middle East and Africa Managing Director George Wills is silent and has not delivered a final verdict on the situation.

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