FADA Honours Over Five Decades of Dealership Excellence in India with the Golden Dealership Awards; 57 Dealerships Recognized with the Dealership Excellence Awards

Dear Friends,

It is with immense pleasure that I report an increasing engagement within our Federation of Automobile Dealers Associations (FADA). We've witnessed an encouraging surge in membership, underpinned by fruitful interactions at the state and regional level. The initiatives rolled out by FADA have been warmly welcomed and I extend my sincere gratitude for your continued support.

Select state chapter members have demonstrated remarkable strides in addressing state-specific concerns. By forging strong connections with state departments and establishing educational programs about key legal provisions such as CMV Rules, GST, or Road Safety, they are helping elevate the dealer community's knowledge.

In Rajasthan, for example, we collaborated with the GST department to facilitate 'Samwad,' an event geared towards understanding and resolving industry challenges. Under the esteemed leadership of Mr. Sharvik Shah, the FADA Rajasthan Chapter interacted with Dr Ravi Kumar Surpur, IAS, Chief of Commercial Taxes, Rajasthan, advocating for reduced two-wheeler GST rates. His favourable response gives us hope for a positive outcome in the council.

Furthermore, the FADA Rajasthan Chapter initiated a virtual conference with Transport Commissioner Rajasthan, Mr. Kanhaiya Lal Swami, and NIC Head, Rajasthan, Mr. Shripal Yadav. The meeting educated our dealer community about the migration to a 5-year TC application and renewal process, as well as pre-owned vehicle registration through authorized dealers, reaching a significant number of 250+ dealer participants.

In Maharashtra, a team led by Mr. Amar Jatin Sheth, Treasurer, FADA and Mr. Sachin Mahajan, Chairperson, FADA Maharashtra along with regional directors, Mr. Ajay Bathija, Mr. Sumit Kachalia, and Mr. Vidyadhar Tapkire, extended an invitation to the Honourable Deputy Chief Minister and Finance Minister, Mr. Devendra Fadnavis, and Principal Secretary, Transport & Ports (Home Department), Mr. Parrag Jain Nainutia IAS, to the Finance and Insurance Summit. They also presented a proposal for reducing two-wheeler GST. The meetings yielded encouraging results.

Our Madhya Pradesh chapter, led by State Chairperson Mr. Ashish Pande, organized a successful dealer meet in the Mahakaushal region. Dealers learned about FADA's contributions to the dealer community through a comprehensive presentation, and a Q&A session led by Dr. Kailash Gupta, Past President FADA, enriched the event.

In Delhi, the FADA State Chairperson, Ms. Garima Misra, alongside chapter members, are tirelessly working with the Transport department to extend the validity of TC to 5 years, eliminate the MBO issue, and promote the Delhi EV Car rally for a cleaner, greener Delhi. These initiatives are part of our collaboration with the Delhi Government.

As we continue working towards the eradication of the MBO menace and advocate for the reduction of GST on two-wheelers, I am pleased to announce that the Delhi Finance Department has scheduled a meeting to explore industry concerns and consider reducing the GST rate on two-wheelers.

An essential endeavour that FADA has undertaken is the implementation of the Model Dealer Agreement (MDA) between OEMs and their channel partners. Our ongoing dialogues with 14 OEMs have started yielding positive results. MG Motor India has adopted the MDA, and others are studying its provisions for possible implementation.

A key meeting held this month was with Mr. Shenu Agarwal, MD & CEO, Ashok Leyland. The discussion centered around empowering more women in the automobile and dealership sectors, implementing training programs for OEM staff at Auto Dealerships, and implementing the MDA. I am pleased to report that Mr. Agarwal showed considerable enthusiasm towards the MDA, with his legal team set to finalize its terms in the forthcoming months.

Another promising conversation was with Mr. Satyakam Arya, Managing Director & Chief Executive Officer of Daimler India Commercial Vehicles (Bharat Benz). We appreciate Mr. Arya's progressive & supportive stance in furthering the MDA. He expressed willingness to present MDA comparative analysis in their Dealer Advisory Council, with the aim to solicit valuable feedback from their dealership partners, shaping the further execution of the MDA. Furthermore, Mr. Arya expressed his readiness to conduct driver and manpower training sessions collaboratively with FADA in the future. I remain optimistic about Bharat Benz implementing these enhancements in the shortest possible timeframe, thereby contributing to the continued elevation of industry standards in India.

The MDA is a crucial element in establishing a solid foundation for dealership operations countrywide. To ensure each dealer comprehends its implications, we will be circulating a comparative sheet detailing the clauses in the OEM agreement.

In the same vein, I wish to reiterate the necessity of instituting an Auto Dealers Protection Act. We must engage with our regional and state level lawmakers and influential individuals to inform them about the Act's significance. To further this cause and many others, FADA Office Bearers will soon organize zonal meetings with all State Chapter members at regular intervals. I strongly encourage all FADA Chapter Members to attend these meetings to fortify our Federation.

Shifting focus to FADA's national events, I am delighted to announce that the 2nd edition of our Finance & Insurance Summit was a resounding success. The Summit offered a platform to discuss pressing issues in the auto dealer community, including rising interest rates, inventory build-ups at dealerships, supply chain constraints, increased cost of funds, and evolving IRDAI norms. The event brought together financiers, bankers, insurance companies, auto dealers, and our valued customers, fostering a dynamic ecosystem where finance and insurance are more accessible and affordable.

The Summit aimed to create a new future where finance and insurance would be more accessible and affordable, to catalyse a resurgence in vehicle purchases and thus bolster our auto sales. Thereby, to foster a robust ecosystem that benefits financiers, bankers, insurance companies, auto dealers and ultimately, our valued customers.

The Summit was graced by more than 300 participants and 22 distinguished industry speakers. Despite his busy schedule, the Hon'ble Deputy Chief Minister, Mr Devendra Fadnavis sent a video message, expressing his support, for which we extend our heartfelt thanks.

During the Summit, Mr. Vinkesh Gulati, Chairman FADA Academy & Research, unveiled a collaboration with NMIMS to launch an executive leadership program designed for the next generation of dealers. Please get in touch with the secretariat at [email protected] if your next gen is interested in enrolling for the same.

I take this opportunity to thank Mr H O Suri, MD & CEO, IFFCO-Tokio General Insurance; Mr Ramesh Iyer, Vice Chairman & MD, Mahindra Finance & Co-Chairman of Finance Industry Development Council; Mr Lavesh K Sardana, Country Head-Retail Assets & Debt Management, Yes Bank; Mr Praveen Naruka, Head Sales, Kuwy; Mr Raul Rebello, Chief Operating Officer, Mahindra Finance; Mr Vikas Pandey, Sr. Executive Vice President at HDFC Bank, Mr Ketan Thakkar, Group Business Editor, Autocar India & Autocar Professional; Mr Subash Talekar of Mumbai Dabbawala; Mr Nipun Kaushal, Chief Marketing Officer & Head CSR, Yes Bank; Mr Nitin Khanna, Business Head, ICICI Lombard General Insurance; Dr Sandeep Dadia, CEO & Principal Officer, Aditya Birla Insurance Brokers; Mr Vedanarayanan Seshadri, MD & Principal Officer, Mahindra Insurance Brokers; Mr Amit Roy, Partner at PwC - Insurance & Allied Businesses; Dr Ramesh Bhat, Vice- Chancellor, NMIMS & Ms Seema Mahajan, Director - Pravin Dalal Centre for Entrepreneurship & Family Business Management, Associate, NMIMS and Mr Shekhar Suman, Indian actor, anchor, producer, director, and singer.

It gives me immense pleasure to announce a momentous occasion – an evening dedicated to recognizing and celebrating our stalwarts, the dealerships that have been in existence for over fifty years. This was indeed a landmark event in the history of FADA, as it marks the first time we are celebrating this extraordinary achievement. Golden Dealership Award were presented to 14 such Dealerships for their enduring presence in the auto retail business for over 50 years. Similarly, the next round of such recognition with happen during FADA's 5th Auto Retail Conclave, scheduled on 14th September 2023 at Le Meridien, New Delhi.

FADA also felicitated Landmark Group in appreciation for their remarkable accomplishment in launching the Auto Dealership Initial Public Offering (IPO) in India as their courageous venture unlocked the true potential of the Auto Retail Industry, marking an unprecedented milestone in our fraternity. Their success has also paved a path for many to follow, providing an inspiring testament to the vast opportunities within our industry. They were hence presented with a special award in recognition of their ground breaking achievement.

We also hosted the FADA Dealership Excellence Awards, recognizing excellence in 57 dealerships across 19 categories. The Dealership Excellence Award would not have been possible without our eminent Jury Members. Special Thanks to Mr Dilip Chenoy, Founder DC Skills & Chairman, Bharat web3 Association; Mr Manohar Bhat, Former Head Sales & Marketing at Kia Motors India; Mr Girish Mirchandani, Owner, Transtopics & Trans India; Mr Hormazd Sorabjee, Editor, Autocar India; Mr Sergius Barretto, Managing Editor, Autocar India. Additionally, I must express my gratitude to our Knowledge Partners, PremonAsia. I extend special thanks to Mr. Rahul Sharma and Mr. Shobhit Verma for managing the entire awards process in such an exemplary and seamless manner.

I am deeply grateful to Mr. Amar Jatin Sheth, Treasurer, FADA and FADA Maharashtra Chapter, led by Mr. Sachin Mahajan for their tireless efforts in organizing this event.

The event at this scale could not have been possible to be arranged without the support of our Partners viz., Gold Partners - Mahindra Finance and Yes Bank; Silver Partners - Aditya Birla Insurance Brokers, ICICI Lombard General Insurance and Mahindra Insurance Brokers; Bronze Partners - IFFCO-Tokio General Insurance; HDFC ERGO General Insurance; Hinduja Leyland Finance and Kotak Prime.

As you know, to encourage women entrepreneurs in auto retail business & to bring them in mainstream FADA activities, we had launched Women in FADA (WIF) vertical. Today, there are 85 women entrepreneurs who are actively participating and making this vertical grow bigger. The vertical is conducting its first study tour in August this year visiting Annamalai Toyota. Please send in your registrations to be part of this course.

Lastly, I want to emphasize that FADA is more than just an organization; it is our safety net, our ally, and our partner in growth. I hence urge all of us to work collaboratively towards a brighter future.

Thank you for your attention,

 

 

Manish Raj Singhania
President - FADA