Circumstances are different my friend. In School fees case, it was a losing cause anyway as you are dependent on the school even after the Court win as that was all temporary and the school management has multiple ways to make more money out of your pocket. They can charge high fee rise every time and you cannot go to court any time. On the other hand in this case, you only have to pay Honda Atlas once and then you are not dependent on them at all. So all the more reason for Atlas to do out of court settlement rather than fighting the case.
Also, in School fees case, the school management fought the case as they could not satisfy just you out of court, as other parents will definitely know in future that this has happened and they will also demand price reduction. In this case, all Atlas has to do is to stop the bad publicity created by few and they will make millions from the other thousands of customers.