Dear Friends,

The Financial Year gone by has created new records for the Indian Automobile Industry where in Passenger Car & Tractors registered their ever-highest retails. The projected growth is in single digit this year. While the 2-wheeler dealers continue to struggle in terms of retails as the industry is at a 7-year low, the CV industry is recovering very well. The Rural Markets across India continues to struggle for retail numbers. Hence, taking all into cognizance and deliberation, we will be pushing hard for the reduction of GST for the 2-Wheeler Industry from 28 – 18 % which will give a breather to this segment which garners maximum volume.

I am pleased to announce that the nominations for the FADA Dealership Excellence Awards is Live. They have been a vital part of the Indian Automobile Retail Industry for many years. Now in its 4th edition, these prestigious awards recognize outstanding dealerships in various categories, spanning all brands known for their exceptional achievements, practices and services.

To ensure a fair and impartial nomination, scrutiny, and evaluation process, we have partnered with PremonAsia, a well-respected research company based in Singapore, as our Knowledge Partners. The Grand Jury will comprise esteemed veterans from both the Automobile and other industries.

This year, there are 54 awards in 20 categories, and we encourage you to nominate yourself and urge your fellow dealers to do the same. To make the Awards even more special, we plan to reward the winners in various fitting ways.

The grand award presentation ceremony will take place in mid-June’23 in Mumbai, the financial capital of India, in front of OEMs, important dignitaries from the government, and allied industries.

I urge all authorized automobile dealers in India, whether FADA Members or not, to nominate their dealership for this coveted Award, which truly recognizes dealership excellence.

Coming to State Activities, FADA Jharkhand Chapter members led by State Chairperson Mr. Govind Mewar recently had a meeting with Mr. K. Srinivasan, the Transport Secretary, where they discussed several important issues. The members raised concerns regarding the penalty for dealer self-registration during the Total Lockdown due to the pandemic in March 2020. Additionally, they discussed the excessively high rate of Temporary Registration (TR), which negatively impacts sales and causes the government to lose GST and registration revenue. The members also requested the option to pay commercial vehicle registration fees online and asked for refunds for dealers who paid for registration but were unable to register due to a system error. Lastly, they suggested refunding or adjusting the trade tax payment made by the dealer prior to the new system of payment against the purchase of vehicles. The meeting ended positively, with the department assuring the members that their concerns would be considered for amicable resolution.

FADA Maharashtra under Chairperson Mr. Sachin Mahajan recently met with the Chief Minister of Maharashtra to discuss unresolved issues related to the RTO. The Chairperson received assurances of support from the department.

Additionally, FADA Maharashtra organized a dealer's meet at Hotel Radisson Blu in Nasik on April 12, 2023. The purpose of the event was to inform the dealer community about FADA's national initiatives and activities, as well as to address concerns regarding recent amendments to the CMV Rules related to trade certificates and pre-owned vehicle sales and registration. Mr. Amar Jatin Sheth, Treasurer, FADA, was also present at the event. The meeting was followed by an interactive session and was attended by 67 dealer principals from various locations in Maharashtra, which was very encouraging. More information about the meeting can be found in the Journal.

FADA Odisha Chapter led by State Chairperson Mr. Pradeep Agarwal held an internal meeting to discuss various issues, including the RTO tax matter, entry tax, and membership drive. A key outcome of the meeting was the decision to hold the "Vyapar" state-level event on April 29th in Bhubaneswar. This will mark the first time that Odisha has hosted such an event, making it a significant milestone for the state's automotive industry.

In Manipur, all 18 members of FADA Manipur headed by Mr. Andy Mangsatabam had the privilege of meeting with the Honourable Chief Minister Shri Nongthombam Biren Singh, Honourable Works Minister Shri Govindas Konthoujam, and Honourable Transport Minister Shri Khashim Vashum. During this meeting, they jointly contributed Rs 22.20 lakh rupees towards CM's Green Manipur Mission, demonstrating their commitment to environmental sustainability and social responsibility.

FADA UP Chapter members led by State Chairperson, Mr. Ankit Raj along with Mr Vinkesh Gulati, Chairman FADA Academy & Research, recently met with Mr Chandra Bhushan Singh (IAS), Transport Commissioner, Government of UP to discuss dealers' concerns in the state. During the meeting, they presented a representation which included the following issues:

1. Allowing dealers to hand over original documents to customers at the time of vehicle delivery.
2. Issuing authorisation letters to authorised dealers for the sale and registration of pre-owned vehicles.
3. Implementing GSR 703 (E) dated September 14, 2022, which allows the addition of sales and workshop places of business to the Trade Certificate.

The purpose of the meeting was to ensure that these concerns were addressed and resolved, with the aim of promoting a more efficient and effective automotive industry in Uttar Pradesh.

FADA West Bengal under State Chairperson & Executive Committee Member, Mr. Soham Misra conducted a Townhall Meeting and GST Workshop 3.0 as part of their Dealer Meet at Biswa Bangla Mela Prangan in Kolkata on April 14, 2023. The day started with an interactive session with two-wheeler dealers to address the MBO menace in the state. This was followed by the Town Hall Meeting, which was attended by Dr Saumitra Mohan, IAS, Secretary of Transport for the Government of West Bengal. There was an interactive session and Q&A with Mr Sanjib Paik, Asst. Director (Tech), Transport Department, West Bengal, a discussion on the Scrappage Policy with Ms Tamishra Ray, MoRTH Consultant, and a Q&A session. The GST Workshop 3.0 was conducted by Mr Jatin Harjai, FCA, Advocate & Leader of JHA Legal, followed by another Q&A session. We appreciate the participation of all the speakers and Real Books in making this event a grand success. We extend our gratitude to all FADA West Bengal Chapter Members for their hard work in organizing this event.

On April 15, 2023, FADA Rajasthan Chapter under State Chairperson, Mr. Sharvik Shah and FADA Secretary Mr. Sai Giridhar along with members held an informal Meet & Greet Session at the Fountain Garden of Ashok Club in Jaipur. The event was attended by dealers from all over Rajasthan, as well as senior transport department officials, such as Shri. Anand Kumar, ACS & PS Transport, Shri. Kanhaiyalal Swami, Commissioner Transport, and Virendra Singh and Dharmendra Kumar, RTO Jaipur 1 & 2. The team also felicitated Mr R C Yadav (Additional Transport Commissioner, Retired) for his outstanding support to all Auto Dealers in Rajasthan and his invaluable contributions to improving the ease of doing business in the state.

It gives me immense pride to see the State Chairpersons taking proactive leads in sorting issues with State Transport departments. Even though we are a long way in getting the new CMVR implemented across country in toto. I request each State Chairperson & Regional Directors to start approaching their respective state governments for implementation of the same.

During the month, I along with Mr Vinkesh Gulati, Chairman FADA Academy & Research participated as Speakers at India E Mobility Show: Electrifying India's Mobility held in Greater Noida.

In our ongoing efforts to implement the Model Dealer Agreement (MDA), myself along the Executive Committee of FADA had a meeting with Mr. Tarun Garg, COO of Hyundai India. During the meeting, we discussed various topics related to the growth and welfare of the Indian Auto Retail industry, including the Model Dealer Agreement. Mr. Garg was proactive and engaged in a constructive dialogue that could benefit both Auto OEMs and Auto Dealers. He also assured us that Hyundai India would consider the Model Dealer Agreement and explore potential modifications to their existing Dealer Agreement.

On the same day, we also met with Mr. Ashutosh Varma, the National Sales Head of Hero MotoCorp, India's largest 2-Wheeler manufacturer. Our discussion centered around how the market leader can pioneer industry-first initiatives and embrace the Model Dealer Agreement. Mr. Varma informed us that Hero MotoCorp's legal team is actively reviewing the Model Dealer Agreement and will provide feedback on the feasibility of adopting it. We are confident that Hero MotoCorp's leadership in adopting the Model Dealer Agreement will inspire others in the industry to follow suit.

Ensuring the implementation of the Auto Dealers Protection Act is crucial, and to achieve this goal, I urge all FADA State Chapter Members to schedule meetings with MPs/MLAs and other political figures in their respective states and regions. It is essential to emphasize the significance of this act and why it must be implemented. Your support in this matter is greatly appreciated, and I eagerly await hearing from all of you.

I once again request you all to write to me with your suggestions & feedback.

Please take care and wishing you all the best for the new Financial Year!

Thanking you,

Yours Sincerely

Manish Raj Singhania
President FADA