The 2nd wave of Covid-19 virus is finally receding and most of the states have started the unlocking process. This should augur well with all in the automobile eco system especially auto retails as we will finally be able to do what we do best!
As tranche payment due dates are drawing closer, FADA has written to the Finance Minister, Banks & Financial Institutions & OEMs for handholding the dealers by extending the tranche period taking lockdown days into account and without any penalty for late payment or restructuring of the loans taken.
In continuation with our meetings with Banks in the above context where we have already met with Axis Bank, Yes Bank and ICICI Bank, FADA Office Bearers met HDFC Bank officials. The meeting was good and the Bank has assured us to go an extra mile in extending support where ever possible within RBI guidelines.
I am happy to share that due to FADA’s continuous follow-up on the matter with the Finance Ministry, RBI, Banks & Financial Institutions; RBI wrote to FADA to understand sector specific concerns due to pandemic aftermath. Hope our response helps in getting some favourable announcements for our community. The Indian economy is a consumption-led economy and the pandemic has impacted the consumer demand and due to this, FADA has called for special package for Auto Dealers and has asked that instead of restructuring, banks should allow a moratorium of 90 days to all categories of dealers without keeping a turnover limit. This is required as Auto Retail Trade works on the principle where dealers get funded from Financial Institutes in terms of inventory funding for a period of 30-45 days (depending from bank to bank) to purchase vehicles from Auto OEMs.
I am grateful to all OEMs who came forward in extending Covid Support package to their channel partners. I request all others who have still not announced any financial help to come forward and hold hands for their dealers in such trying times as they face financial stress due to negligible retails during the April- June’21 lockdown period.
Friends, while requesting OEMs to create a Dealer Advisory Council with meaningful roles, FADA plans to have OEM Committee on FADA platform to deliberate not only OEM- Dealer issues but to be able to present constructive solutions on various challenges faced by Automobile sector to policy makers, banks & financial institutions as one strong voice. For this, we have written to all OEMs and are now waiting for their response.
We also plan to come out with our own Research & white papers on various subjects relating to Auto eco system with an aim to provide insights that will not only benefit dealers but other stakeholders as well. We therefore plan to revamp our research wing. Work has already begun on this front and once formalised, I shall be sharing more details.
I take this opportunity to congratulate each one of you for your contributions in making FADA stronger and bigger with each day going and for also motivating dealer friends to come under FADA umbrella and further strengthen the ‘Voice of the Dealer’.
Friends, I am happy to share that, we have recently upgraded our website www.fada.in. From the look and feel to content, we have tried to take care of all the things and make it up to date. Now, all circulars, may it be related to GST, Service Tax, CMVR etc are all in one place. You are requested to kindly visit the website, give your feedback and also create your login as many features are restricted for members view only. For any help in creating your account, please get in touch with the Secretariat team at email@example.com
Auto Dealers continue to come under FADAs umbrella at a healthy rate. To ensure that the Federation does not lose its focus, it has been my endeavour to find ways to be in constant touch with our members and to understand their concerns so that we continue to work hard and solve them. To do this effectively, we have been organising state wise meetings with State Chairpersons and all the Regional and 2 Wheeler Directors. You are hence requested to kindly be in touch with your SC or RD in case you are facing any issue in running your dealership smoothly.
Keeping this in mind and working towards this, Office bearers met with the 2W vertical State Directors, Retail Forum Members, DAC Heads of various OEMs & State Chapter Council Members of Kerala, Tamil Nadu & Karnataka and had brain storming session regarding the various regional/ state issues, vertical specific issues and their possible resolutions. During these meetings, members were appraised about the various initiatives FADA was taking to address & mitigate dealer issues. Such meetings not only helps to invigorate the Federation at the grass root levels but also helps us in understanding the best practices that may be adopted and worked upon. Through these meetings many thoughts were shared which then helps us at the centre to chart out new paths for FADA for making valuable contribution for the benefit of its members.
To make vehicle registration process faceless & paperless in true spirit and to implement the amended rules notified by MoRTH on March 31, 2021, FADA Delhi Chapter organised open house discussion with Delhi Principal Secretary cum Transport Commissioner, Mr Ashish Kundra ji. Mr Kundra not only gave a patient hearing to all the questions raised but also announced on spot decisions on various matters. Most of the Dealer Principals of Delhi attended the discussions and benefitted. FADA Delhi Chapter has also prepared and handed over a detailed note on the various concerns as requested by Mr Kundra for his consideration.
Further, along with UP State Chairperson and Regional Directors, I met UP Transport Commissioner, Mr Dheeraj Sahu regarding various issues plaguing the dealers in the State with regard to the registration process and other matters. Meeting was fruitful and we were given assurance regarding favourable consideration of our requests. Also, he shared a notification elaborating the process by which dealers in the State could claim refund in case of erroneous entry or double payment made due to technical glitches. This will really help the dealers in getting the money stuck with the department.
To keep members motivated, FADA recently held a webinar on ‘Building a Customer Centric organisation’. The key speaker on the occasion was Mr Vivek Sundar, COO Swiggy who provided many insights regarding- how engaging with both satisfied and unsatisfied customer helps in providing insights to build the business stronger and viable at all times; the importance of being able to quickly reinvent and diversify with the help of processes and systems keeps the business rolling. According to him disruptions provide reasons and opportunities to renew and winners are those you are able to encash without relenting to the circumstances come what may.
Friends, the VAT case in Maharashtra on RTO and Insurance was one matter which had everyone’s eye. I am happy to share that under the aegis of Maharashtra State Chairperson Mr Amar J Sheth and Regional Director Mr Achal Gandhi, we have managed to get a stay on the demand of VAT on RTO and Insurance. We are hopeful for a positive result so that this matter comes to an end once and for all. I am sure that this will be a huge relief to all the dealers of the state and put a brake on any such issue in other states which may arise by taking a precedence from this.
Digitisation is the way forward especially with the advent of new age vehicles and EV’s. You are therefore requested to make sure that Dealership’s frontline staff members take part in the 2nd edition of the course which FADA in partnership with ASDC & Google are doing under the banner- ‘Grow with Google-2.0’. Please use this wonderful opportunity to educate your team members (who have already registered but now need to take the course) about the benefits they would have personally in becoming tech savvy and also help them in their area of work thus proving beneficial to both, the organisation & employee. What’s more, the course is absolutely free and can be learnt at one’s own pace. For your ready reference, the link to join is https://courses.asdc.org.in/
FADA’s DSS Survey 2021 is in its last lap as the Survey closes on June 30, 2021. I am grateful to all of you for taking part in large numbers. To make the survey further strong, I request all those who have still not participated to please do take the Survey. Our Secretariat is calling all those dealers who have started but could not complete due to some reason and are sharing special links to complete the same. Please help your voice to be strongly heard through the Survey results. I personally again reiterate that we value your privacy and abide by the highest sense of confidentiality and no details will be shared with anyone included us Office Bearers. It is heartening to know that many OEMs are supporting your Federation’s initiative by encouraging their channel partners to participate.
Please remember FADA’s DSS Survey is a study which is By the Dealers, From the Dealers & For the Dealers! Therefore, please participate if not done already and encourage at least two of your friends to also fill the Survey thereby making a huge contribution to your Retail Community.
At the cost of repetition, as the unlock process rolls out, I wish we all are able to do what we love doing the most– Retailing & Servicing Automobiles.
Let’s continue from where we left 2 months back, though by following all covid safety protocols!
President - FADA