Disclaimer:

Škoda Auto Volkswagen India Pvt. Ltd. (“SAVWIPL”) operates in India through a network of its Authorized Dealers who are appointed on a principal-to-principal and non-exclusive basis and are authorised by SAVWIPL to market and sell Škoda brand vehicles to the end customers. The official and current list of Authorized Dealers is available at www.skoda-auto.co.in.

It has recently come to SAVWIPL’s attention that misleading -offers relating to sales of Škoda vehicles are being disseminated through certain unauthorised and unapproved third-party intermediaries and third-party online platforms. In some instances, it has also come to SAVWIPL’s attention that these unauthorised third-party intermediaries and/or unauthorised online platforms are claiming arrangement and association with our Authorised Dealers.

It is hereby clarified that SAVWIPL does not endorse or assume responsibility or confirm accuracy of any such representations, discounts, commitments, assurances or information of any kind whatsoever which are being disseminated or provided by such unauthorised and unapproved third-party intermediaries and/or unauthorised third-party online platforms by claiming association with Authorised Dealers for sale of Škoda vehicles on their online platforms. SAVWIPL or its Authorised Dealers shall not be liable or held responsible for any loss, damage, harm or prejudice suffered by any person, if such loss, damage, harm or prejudice is caused on account of such person relying upon any false, unlawful and entirely misleading offers relating to Škoda vehicles or from any transaction, financial or otherwise, processed through such unauthorised and unapproved third party intermediaries and/or third party online platforms.

Dear Dealer Partner,

We have received customer escalations apprising us that an unauthorised and unapproved third-party intermediary / online platform by the name, ACKO Drive (website link: ACKO Drive: Everything Auto! All the news, reviews, prices of your favourite cars and bikes), is disseminating sales offers in relation to sale of vehicles (both, new and discontinued) of various brands including Škoda, Volkswagen and Audi, through its online platform / website.

It has further been brought to our attention that such unauthorised and unapproved third-party is disseminating unverified and outdated information and assurances, including but not limited to delivery commitments, sale of unavailable or discontinued models and collecting advance booking amounts and failing to adhere to the commitments through their online marketplace.

It appears that the said entity has represented to the end-customers that it has tie-ups and associations with authorised dealers of the respective brands, pursuant to which vehicles would be delivered by these authorised dealers after completion of all formalities for sale of the vehicle selected. While the accuracy of such representations made and assurances given is presently unverified, we consider it necessary to draw your immediate attention to the express and unequivocal binding provisions of the Dealership Agreement (and any amendments thereto) governing your appointment as our authorised dealer.

SAVWIPL operates a selective distribution system to ensure uniform brand standards, regulatory compliance, safety, and after-sales accountability. Further, as you are aware, Article 2(2) of the Dealership Agreement inter alia envisages digital distribution and digital sale of the Contract Products solely in terms of Article 14 thereof. Article 14 of the dealership Agreement mandates that the Authorised Dealers must obtain “prior written consent” from us before offering vehicles for sale through any third-party websites such as online marketplaces. Further, Article 6(3) of the Dealership Agreement expressly prohibits the Authorised Dealers from entering into any distribution arrangements including sub-dealer, commercial agent, or similar agreements, with third parties for sale of vehicles.

It is reiterated, renotified and brought to your attention that any engagement and/or association with any unauthorised and unapproved third-party websites / online marketplace providers for the sale of the vehicles, without obtaining the requisite prior written consent constitutes a material breach of the Dealership Agreement necessitating appropriate legal action to be adopted for such violation and breach of the terms of the Dealership Agreement.

Additionally, there is possibility in certain instances that the end-customers would be compelled to procure insurance and/or vehicle financing support from specific third-party entities. Authorised Dealers are hereby informed and reminded that the end-customers must be afforded absolute freedom to elect their preferred insurance provider and financing institution. Any practice restricting such independent choice may attract scrutiny and potential action under the Competition Act, 2002, in addition to contractual consequences under the Dealership Agreement. In light of the foregoing, the Authorised Dealers are strictly advised to forthwith comply with the following:
(a) Refrain from engaging or associating or appointing any unauthorised and unapproved third-party intermediaries and/or third-party online platform providers for vehicle sales without SAVWIPL’s prior written consent;
(b) Ensure strict and full compliance with the terms of the Dealership Agreement along with the guidelines thereto and the applicable laws in force;
(c) If you have any such association with such third party, please discontinue such association immediately and address and resolve any customer complaints and/or issues arising from such unauthorised and unapproved activities.

Kindly note that any non-compliance may lead to serious contractual and legal consequences and proceedings against the Authorised Dealer found to be acting in violation of the terms of the Dealership Agreement.

This circular which forms a part of the ‘Supplier Guidelines’ is being issued in the interest of protecting and safeguarding the end-customers, preserving our brand name and image, goodwill and reputation in the market and ensuring uniform compliance across the dealer network.

This circular is issued without prejudice to our rights and remedies under the Dealership Agreement or in law.