Dear Friends,

Advent of the new financial year has been in the midst of the 2nd wave of COVID-19 which indicates FY22 to be yet another year of challenge. While on one hand Covid 19 surge is increasing across the country & world over, on the other hand shortage of wafers for semiconductors, increase in commodity prices and shortage of containers are not only disrupting production timelines thus increasing the waiting period for vehicle ownership by customer but is also affecting the growth trajectory of the industry. Worst, the impending lockdown, if happens, might severely hamper the momentum of the auto retail industry’s efforts to come out of the recession the industry has been facing.

In this regard, FADA has written to the Hon’ble Prime Minister & Hon’ble Health Minister, for allowing vaccinations to all people above 25 years so that the Youth, the future of our Nation is protected. FADA has followed up with this request with the leading Chambers of Commerce also.

Hopefully with good monsoons, as is being predicted and with herd immunisation, spurt in economic growth may happen improving customer sentiment, propelling growth in retails from the 2nd quarter of FY’22.  

Regarding FADA initiatives, I am happy to share &  applaud FADA State Councils for utilising challenging times as an opportunity and working with transport department for formulating faceless & paperless registration of fully build commercial & personal vehicles at the dealership for ease of doing business & for also stalling spread of virus by reducing avoidable personal meetings. Paperless and Faceless registration has already been implemented in few states like Rajasthan, Odisha & is currently being implemented in Haryana.

In line with FADA’s request, MoRTH vide GSR 240(E) dated March 31, 2021 notified the amended rules of CMVR 1988, allowing for faceless and paperless registration of fully built vehicles at dealerships and have also done away with the requirement of production of fully built motor vehicles before the registering authorities for the purpose of registration. Also, intra state registration & generation of RC has been made online. 

However, rules permitting online renewal of Trade Certificate & enhancing the validity of Trade Certificate to 5 years is still pending. FADA State Councils will be following up with their respective Transport Department for getting the new rules implemented in their respective states and will continue to pursue for online renewal of TC having validity of 5 years.

To further strengthen dealer voice, FADA created 2W vertical under its wings. 2W dealers constitute 70% of the auto retail industry. In this regard, FADA MP and Karnataka Chapters held virtual 2W dealer meet which was attended by FADA President & State Chairperson. 

The main concerns voiced by the 2W dealers included that the government support was needed at this juncture for sales to pick up and for this they suggested: a)Reduction in GST rate for limited time ; b)Revert to one + one year insurance instead of one + five years ;  c)Reduce road tax rebate for a limited period till sales pick up; d) zero card swapping charges to promote digital payment. The dealers also wanted OEMs to work on improving dealer’s viability and support them in tackling the MBO menace and work with financiers to get vehicle financed with low margin money with minimum formalities where IRR is made at par with four wheeler finance.

Such interactions foster good synergy amongst dealer community and enable them to work forward together. I am hoping State Directors of other states taking a cue hold such interactions in their state as well.

FADA has intiated the Annual Dealer Satisfaction Survey 2021. I trust, most of you would have filled the survey which became live on April 14, 2021. Those who have still not filled the same are requested to devote some time and do the needful. Rest assured that your individual responses will remain confidential and secure. 

More wide based the Survey becomes, more accurately will the survey results highlight OEM best practices and also help in closing the gaps between OEMs & their Dealer Partners wherever possible. 

Remember, FADA’s DSS 2021 is By the Dealers, For the dealers & From the Dealers. Therefore, it is in our interest to participate in the Survey as this will require not more than 20-25 minutes of your time to fill the same. The Survey will close on May 31, 2021 & results will be shared in the first week of July’21.

By the time you receive, the next edition of the Journal, Survey lines would have been closed & therefore, I am doing my best to encourage all of you to participate in this edition to help your Federation make the ‘Voice of the Dealer’ heard.

I appeal once again to all my dealer friends, till we overcome the pandemic to exert caution and follow all safety protocols at dealerships.

Stay Safe, Stay Healthy,

Warm Regards,

Vinkesh Gulati
President FADA