Italian supercar maker Ferrari has temporarily shut down its Indian operations. The supercar maker is the latest in the slew of high end brands that have broken up Ashish Chordia promoted Shreyans Motors. Consequently, the two Ferrari dealerships in India, at Delhi and Mumbai, have been shut down. Until Ferrari find another way to import and sell its cars in India, the hallowed supercar brand will not operate in the country.
Notably, Ferrari isn’t the only brand that is embroiled in a legal wrangle with Shreyans Motors. German automaker Porsche and Italian sports motorcycle maker Ducati have also had run-ins with the Shreyans group, resulting in Volkswagen taking control over the distribution, sales and service of both Porsche and Ducati. Notably, the Volkswagen group owns Porsche while the German group’s brand Audi, owns Ducati.
These break ups have left Porsche and Ducati customers fuming as service delivery took a major hit with the Shreyans group disassociating itself with after sales of both brands. In the meantime, Ferrari plans to appoint a new importer for India within 6 months, until when prospective buyers will have to liaise with the supercar maker directly. Cars are expected to shipped in from Dubai or Abu Dhabi.
These repeated tussles between importers and high end car and motorcycle makers do not augur well for the super luxury automobile market in India. When a buyer forks out a few crores for a high end marquee automobile, she or he expects special customer service and superb after sales support, two areas that have been lacking across many high end car and motorcycle brands in India. A solution to this issue could be the parent company, Ferrari in this case, taking complete control of the distribution and after sales service wings, eliminating the middleman/importer in the process.
Such a move would allow high end brands to control customer experience, a make or break aspect in the super luxury world, more tightly. Distributors playing havoc with automobile brands isn’t restricted to high end brands. A mass car market brand, Nissan, recently severed ties with Hover Automotive, a marketing and distribution partner, over complaints from dealership and car buyers. Nissan has now taken complete control of the marketing and distribution functions.