Volkswagen’s MAN Trucks India dealers planning to move court

NEW DELHI: A group of dealers of Volkswagen’s MAN Truck & Bus unit is planning to move court seeking compensation after the German truck maker decided to exit the Indian market, president of the Federation of Automobile Dealers Association (FADA) said.

“The dealers of MAN Trucks had invested over Rs 200 crore in infrastructure, software equipment, etc., in the last few years at their dealership units, for which MAN has not offered any compensation,” John K Paul said over the phone from Kerala.

Such exits by manufacturers not only cause financial loss to the dealer, but also hurt the credibility of the dealership as it is the one that faces the customer, Paul said.

“This has become a trend, first GM, now VW’s Scania and MAN. The government must enable a dealer agreement or law to keep OEMs responsible towards the loss incurred by dealers. We will soon move court seeking compensation for dealers,” he said.

MAN Trucks India said it was aware of the hardships caused to dealers by its decision. The company has terminated only the sales contract and the service contract is still active, and has also offered dealers a support programme to enhance their opportunity to generate more earnings, a spokesperson said.