Dear Friends,

As the adage cautions, “to be forewarned is to be forearmed.” We are observing a disturbing surge in Passenger Vehicle (PV) inventory within the automobile industry, necessitating immediate attention and action. FADA Data shows that there is a sharp uptick in inventory days, now triple the ideal 21-day standard recommended by FADA at the end of November. Such elevated levels pose a stark warning for our dealers' financial health and stability. Remarkably, despite the recent festivities, the inventory reduction by November end was a nominal 2 days, maintaining a precarious 60+ days high!

As an initial measure, we reached out to SIAM for urgent dispatch reduction, aiming to lighten dealership inventory levels. However, even after 15 days, we await their response! Considering this, we have hence written to all Banks which provide channel funding/ trade advance to apply caution. It is imperative to align funding with actual market conditions rather than speculative sales forecasts. Continuing to extend credit without assessing actual sales could precipitate a financial burden for dealers, undermining their capacity to fulfil financial commitments to the banks. We have also appealed to them to collaborate with PV OEMs to moderate year-end wholesale billing volumes, which, if remains unchecked, threatens to overextend dealers financially, potentially triggering defaults.

Our industry engagement continues to soar as we actively contribute to pivotal forums. Recently, distinguished speakers - Mr. Amar Jatin Sheth, Treasurer, and Mr. Vinkesh Gulati, Chairman of FADA Academy & Research - captivated audiences at EV DYNAMICS 2023 in Pune, exploring Electric Vehicle Manufacturing, Battery Technology, and Charging Infrastructure. This showcases our steadfast dedication to innovation and progress.

The collaboration with META extended through a Knowledge Series webinar—The Ultimate Drive: Accelerating Auto Sales Success—where esteemed speakers from META shared invaluable insights. It's heartening to note the enthusiastic participation of over 120 dealer principals from across the country, fostering an engaging and enriching session.

Celebrating a significant triumph for the auto retail industry, the recent decision by the Chandigarh administration to revoke the capping on ICE vehicle registrations stands as a testament to our unified efforts. This achievement was driven by the remarkable leadership of Mr. Rishi Dada, Chairperson FADA Punjab and Mr. Ranjeev Dahuja, Regional Director, FADA Punjab, in collaboration with the Central Team from FADA, led by Mr. Sai Giridhar, Secretary and Mr. Saharsh Damani, CEO.

In our pursuit of addressing industry challenges, FADA actively engaged with esteemed figures—the Hon'ble Finance Minister, CBIC Chairman, and members of the GST Council—advocating for crucial guidelines in GST laws. We aim to enable input tax credit at the point of goods transfer by OEMs and address concerns regarding the taxation of Extended Warranties. Copies of these representations have been shared with key industry bodies for further support and action.

Our commitment to enhancing industry skills led to insightful discussions with ASDC officials, exploring avenues for enhanced skill development at dealerships. Notably, our visit to Aadharshila, a skill development centre at JS4Wheel dealership in Alwar, Rajasthan, led by Mr. Nikunj Sanghi, Past President of FADA, provided invaluable insights into establishing skill development centres within dealerships.

FADA Jharkhand under the leadership of Mr. Govind P Mewar organised the first ever FADA Conference in the state under the name Vyapar Jharkhand – Badalte Jharkhand Ke Tasveer. The same was attended by more than 125+ dealers in the state.

I take this opportunity to thank FADA Jharkhand Chapter Members led by Mr Govind P Mewar for working tirelessly for putting up FADA’s 1st mega event in the state.

I also wish to express my sincere thanks & gratitude to our distinguished speakers, Hon'ble Chief Guest, Mr Kripa Nand Jha, Secretary & Transport Commissioner, Transport Department, Government of Jharkhand; Dr Piyush Gupta, SIO-cum-Sr. Technical Director, NIC Jharkhand; Mr Anurag Chowdhury, President, Rosmerta Group;  Mr Hemant Kumar Jain, Director, Autobikes (A Unit of Rattanlall Auto Pvt Ltd); Mr Pulkit Sachdeva, Industry Manager, Auto, Google; Ms Richie Gupta, Chief – Industry Engagement, Automotive Skills Development Council (ASDC); Dr Rakesh Godhwani, Founder & CEO, School of Meaningful Experiences (SoME); Mr C S Vigneshwar, Vice President, FADA & MD, Anaamalais Toyota, and Mr Saharsh Damani, CEO, FADA for sharing their knowledge, expertise and experiences with our delegates.

I will also like to thank our partners – Rosmerta, Google; Axalta & SBI General Insurance for their unwavering support and partnership in helping making the event a roaring success.

Plans are also in motion for FADA's inaugural Commercial Vehicle & Tractor Conference in Delhi during the month of April 2024. Stay tuned for more updates!

Additionally, we've initiated a dedicated vertical within FADA for Tractor Dealers, aiming to address their concerns and bring substantial benefits. We're excited about the upcoming virtual interactions with them so that their issues can be addressed in the most professional manner.

The ongoing executive leadership program for FADA GenX in collaboration with FADA Academy and SVKM's NMIMS University, Mumbai, is currently underway. During the physical sessions for the month, participants enjoyed an interactive session with Mr Sandeep Kalmadi, Vice President, Sai Service Pvt Ltd. where he spoke on Improving operational efficiency. During the evening, an interactive session was organised with Mr. Hormazd Sorabjee, Editor of Autocar India. The next day, Mr Veejay Ram Nakra, President, Automotive Division, M&M spoke on the Importance of maintaining financial prudence and how to grow by investing in same. I am sure that these sessions will help our budding entrepreneurs to remain ahead of the curve for a long time when compared to their peers!

I'm thrilled to share a pivotal moment in our pursuit of excellence within the automotive retail sector. The launch of the ground-breaking Digital Marketing Certification Program - done by FADA Academy in collaboration with META for the Meta Blueprint Certification Program is a significant stride in empowering our members with cutting-edge digital skills. The physical session which saw 100+ participants was scheduled on December 18th at the META office in Gurugram, this initiative has reserved complimentary registrations exclusively for FADA Members, reaffirming our commitment to nurturing your expertise. Post this, participants will have to go thru a self-based learning module which will ultimately lead to get Meta Certified once they clear the exam.

Friends, the NADA Show is coming up from 1-4 Feb’24 at Las Vegas. On the side-lines of the event, we are also planning dealership visits so that our delegation of members know about various best practices which our counterparts are following in the most matured vehicle market. We are also planning a high-tea when the international round table will be hosted on 1st Feb’24. This will help our members interact with dealers who come from all parts of the globe.

This journey signifies our collective commitment and collaborative spirit, steering the automotive retail industry towards innovation and excellence. Your input and suggestions are vital in fortifying FADA's foundation. I warmly invite your views on further strengthening and empowering FADA, ensuring it remains at the forefront of industry progress and support.

Warm Regards,

Manish Raj Singhania

President - FADA