Dear Friends,

I hope this message finds you in good health and high spirits.

As I reflect on the vibrant festivities that have just unfurled with Navratri and as we usher in the cheer of Diwali, it's heartening to see the wave of prosperity and growth impacting various sectors, particularly Automobile Retail. This Navratri experienced a commendable double-digit growth. This positive trend spans across various segments with the exception of tractors. Notably, the two-wheeler and three-wheeler categories have shown exceptional growth, while commercial vehicles and passenger vehicles have maintained a steady increase with low single-digit growth.

This upward trajectory in the automobile sector is more than just encouraging numbers as it signifies a promising start, echoing the saying, "Well begun is half done." With the anticipation of Diwali, we are gearing up for what we expect to be record-breaking sales, adding further to the festive spirit.

However, a note of caution to our dealers regarding inventory management. We had anticipated sales to be even more robust, leading to a decrease in inventory levels. Should the sales during Diwali not meet our expectations, the burden of high inventory costs will loom large. It's imperative that dealers maintain a judicious approach to inventory, as challenges arising from unsold stock could jeopardize their financial stability. The current inventory levels in passenger vehicles, already at all-time highs, demand prudent management to ensure they stabilize post-festivities. This not only reflects the health of our industry but also mirrors the consumer confidence and economic vitality. Dealers should remain vigilant to stay afloat amidst these uncertain times.

Recently I was honoured to being the Chief Guest at Bhopal Automobile Dealers Association’s (BADA) AGM. This event’s significance lies in the unity and collaboration it represents within our community, all thanks to Mr. Ashish Pande, State Chairperson – MP and President of BADA. These intimate gatherings foster camaraderie, providing the perfect platform for exchange of ideas and building partnerships.

I commend the dedicated efforts of our members in making every event, regardless of its size, a success. Your collective spirit and shared commitment are the driving forces behind our industry's progress. Even in more modest-sized events, our shared dedication and collaborative efforts can bring about significant changes. It is through these interactions that we celebrate our achievements, acknowledge our challenges, and pave the way for a more robust and resilient automotive sector in the country.

FADA Gujarat under the leadership of our esteemed Governing Council member, Mr Pranav Shah met CA Jaymin Vakil, AMC Councillor, and Revenue Committee Chairman, for the implementation of online payment of AMC road tax before the Deepawali festival. The meeting was fruitful and is a significant step towards enhancing efficiency in our operations. I am also thankful to Mr. Hitendra Nanavati, State Chairperson – Gujarat for keeping the dialogue on with the Ministry thru FADA’s representations on the said subject.

Furthermore, I am pleased to report that our CEO, Mr Saharsh Damani, conducted a detailed virtual meeting with Mr Joydeep Shome, DDG at NIC-Morth, focusing on crucial corrections and enhancements required for the E-Vahan Portal's dashboard. These discussions were conducted with the primary objective of ensuring that we maintain our position at the forefront of the digital landscape. By implementing these necessary improvements, we are not only enhancing the efficiency of our reports but also meeting the high standards demanded by the ministry, industry bodies, financial institutions, and media. This proactive approach underscores our commitment to delivering excellence and remaining responsive to the evolving needs of our stakeholders.

During the month, our Treasurer, Mr Amar Jatin Sheth had a meeting with Dr Arun Ramrao Birajdar, Joint Commissioner of State Tax, Mumbai, regarding the inclusion of Registration Charges/RTO Tax, Insurance, and other incidental costs within the provisions of the Motor Vehicles Act, 1988. The meeting was fruitful as the Commissioner after understanding the concerns highlighted has assured that corrective action will be initiated. This showcases FADA’s proactive stance in legal and financial matters.

FADA was invited to attend the Implementation of Vehicle Scrapping Policy Stakeholders Consultation meeting chaired by the Hon'ble Minister of MoRTH, Shri Nitin Gadkari Ji.  Senior officials of MoRTH, OEM heads, representatives of Used Car aggregators participated in the meeting and expressed their view, concerns & solutions. Secretary, FADA- Mr Sai Giridhar represented FADA at the stakeholders meeting.

I am pleased to update you that the Hon’ble Minister is very keen to see the implementation of setting up of Registered Vehicle Scrappage Facility (RVSF) throughout the country and to incentivise the program has provided a clear mandate to OEMs to outline the incentives they would offer to customers against Certificate of Deposit (COD) within a stipulated time frame. The Ministry suggested a 5% incentive based on the cost of the vehicle, but the industry has the opportunity to propose alternative suggestions.

Mr Sai Giridhar proposed several initiatives to enhance the attractiveness of the Registered Vehicle Scrappage Facility (RVSF) and Automotive Testing Stations (ATS) for our customers. These proposals include:

Incentives from OEMs: OEMs should provide incentives to customers against the production of COD certificates, encouraging the adoption of digital transactions and enhancing customer benefits.

MSTC Involvement: MSTC should suggest a floor price for scrapped vehicles uploaded on the portal before the bidding process begins, ensuring transparency and fairness in the scrappage process.

Handling Total Loss/Repossessed Vehicles: Develop a mechanism in collaboration with insurance companies to bring total loss vehicles, repossessed vehicles, and unclaimed accident vehicles at dealerships directly to RVSFs, streamlining the scrappage process.

Creating Awareness: FADA will create an informative video outlining the benefits of the Scrappage Policy. This video will be played at dealerships to raise awareness among customers about the advantages of adopting the policy.

E-Vahan Transactions: FADA will submit a representation urging for amending the rules framed for “authorized dealer of registered vehicle” to allow transfer of such vehicles among the authorized dealers who have obtained authorization certificate in Form-29B.

We have sent a detailed representation on the same to the Ministry. Our suggestions & actions reflect our commitment in not only supporting the Ministry’s initiatives but also highlight our proactive approach in creating a sustainable and customer-friendly automotive ecosystem.

FADA will soon be sharing a detailed note highlighting the significant opportunity for the dealer friends in setting up Registered Vehicle Scrapping Facilities with the details of the key persons email & phone numbers for felicitating one to one interactions. I encourage all members to stay engaged and contribute actively to these initiatives. We will also be soon holding a webinar on the said topic, which will be conducted by senior officials from MoRTH. Please keep an eye on the announcement which will happen soon. Your participation and insights are invaluable in shaping the future of our industry and therefore, please feel to write to me at [email protected]

I am also thrilled to share a significant milestone in our journey. As the President of FADA, I recently had the honour of virtually presenting India's Auto Market Challenges at the prestigious CECRA #CONNECT Europe 2023 in Berlin, Germany. This global platform provided us with an opportunity to showcase the immense potential and challenges of India's automotive landscape on an international stage.

This global exposure not only elevates FADA's stature but also emphasizes our industry's resilience and adaptability. It positions us as key players in the international automotive arena, capable of addressing challenges and embracing opportunities on a global scale.

I take this opportunity to express my gratitude to each one you, whose dedication and hard work contribute significantly to our industry's global recognition. Together, we are shaping the future of the automotive sector, not just within our borders but also on the international stage.

At FADA we organised a webinar on Digital Myth-Busting conducted by Mr Gaurav Juneja, Head of Digitisation, Omni Channel Business, Google India & Mr Piyush Gautam, Lead Digitisation - Omnichannel Enterprises, Google India. They emphasized the importance of embracing digital advancements, paving the way for our industry's future growth. More than 100+ participants from dealerships across the country attended the interactive webinar.

I trust this webinar proved to be a fruitful and enriching experience for all attendees, providing valuable insights into the digital landscape and strategies to navigate the evolving market trends. As we move forward, I encourage each one of you to implement the knowledge gained, leveraging digital tools to enhance customer experiences, streamline operations, and boost overall efficiency.

Lastly, the collaboration between FADA and PremonAsia culminated in the release of the Dealer Satisfaction Study (DSS'23) in-depth report. Many OEMs have already procured this report for their internal assessment, a testament to its significance. This report is immensely valuable in bridging the gap in OEM – Dealer Relation. The insights from the DSS'23 will undeniably aid OEMs in addressing the concerns and gaps highlighted by their dealers in the satisfaction study. This combined effort reinforces our dedication to offering comprehensive insights for informed decision-making.

As our industry has entered the 42-days festive period, traditionally marked by a surge in auto sales I would like to add a word of caution. As we celebrate the bumper auto sales during this festive period, it is imperative for us to remain vigilant and prudent in our strategies and keep inventory in check. By embracing a careful and informed approach, we can safeguard our interests.

Happy Navratri, Happy Durga Puja and a Very Happy Selling Season!

Warm regards,

Manish Raj Singhania

President