Gala Awards Ceremony held recognising winners of the Dealership Satisfaction Study ’24 for F&I Co’s & Dealership Excellence Awards 2024

Dear Friends,

I am delighted to announce that the Federation of Automobile Dealers Associations (FADA) continues to expand as more dealerships join our community. The support from dealer community and recognition from the government and the automotive industry is truly commendable.

At the recently concluded 313th Governing Council Meeting, FADA committed to addressing several critical issues:

Rising Paid-Up Stocks: With dealership stocks currently at 50-60 days, Anything above this will severly hamper our profitability & business. We will negotiate with OEMs to cover interest on the above than 60 days stocks to protect dealer working capital.. FADA Research will soon release OEM-specific stock data from E-Vahan to highlight these issues.

GST Concerns: We are collecting GST-related concerns from the auto retail industry to present to the Hon’ble Finance Minister and the GST Council.

Test Drive Vehicle Challenges: We will advocate for solutions to the problems surrounding test drive vehicles.

Additionally, we have launched September 19 as Auto Dealers Day to honour the Auto Dealer community, recognizing its contributions to the national exchequer, employment generation, Skilling & Upskilling employees and road safety. We seek your suggestions on how to celebrate this day across the country. Please share your ideas on the form mailed to you and also circulated on the WhatsApp group.

I am pleased to report progress in other initiatives:

Ms Garima Misra, Chairperson of WIF, reported to the council that 99 women entrepreneurs have joined the WIF vertical. WIF members are showing a growing interest in FADA initiatives and are increasingly taking a leading role, which is highly encouraging. WIF Directors in several states have initiated meetings with women entrepreneurs and are launching various programs to engage with them, thereby strengthening the vertical at the grassroots level.

FADA Academy under Chairman- Mr Vinkesh Gulati is soon to start the second Leadership Program with NMIMS for GenX members, reflecting the growing importance of leadership development among next gen dealer principals.

In my previous communication, I highlighted FADA's partnership with F&S to conduct the Customer Experience Index (CEI) survey across 27 cities in India, specifically focusing on Passenger Car brands. Teams from F&S are currently engaged in survey activities at various locations such as halls and petrol pumps, having already completed 1200 surveys. The study aims to provide brand-specific insights, including detailed analyses of sales and service metrics. I am happy to share with you all that already several OEMs have shown strong interest in the report, which is very encouraging.

Regarding the adoption of the Model Dealer Agreement drafted by FADA, I am pleased to inform you that in my recent meeting with Mr. Tarun Garg, COO of Hyundai Motor India, I received assurance of Hyundai’s eagerness to adopt six out of eight clauses recommended by FADA. We anticipate an official announcement soon, which will further enhance the collaboration between channel partners and their OEMs.

FADA is also working towards getting the dealerships certified as Carbon Neutral / Green Dealerships. More details on this would be shared once the collaboration with the respective agency firms up.

Friends, please adopt the On Road Legal Assistance - LOTS program by Lawyered. For helping you understand the potentials of this customer centric program & a potential revenue generating opportunity for dealerships, we shall soon be hosting a webinar on 13th July’24. I request you all to avail of this opportunity to understand the program & benefit by adopting it.

Reverting to FADA’s activities during the month, I would like to mention that recently I participated as a panelist at the Good Air Summit & Awards, discussing India's role in global sustainability efforts. Our initiative to plant trees in the name of our Guests / Winning State Chair person rather than giving bouquets & our moto to give a Tree / Plant with every new vehicle sold was highly appreciated by my co – panelists.

Chairperson FADA Jammu, Mr Sanjay Agarwal, and chapter members have engaged with bank officials to address direct payouts to sales executives and joint promotional activities. These interactions enhance transparency and relationship building.

Chairperson FADA Delhi, Ms Garima Misra, and chapter members also held a video conference with Mr Prashant Goyal, IAS, COT Delhi, and senior officials from Delhi Transport & NIC to address industry concerns.

On the banking front, FADA is writing to SBI on various issues which impact the interest of our business. It has also come to our attention that in most of the instances, commission payments are being made directly to dealership staff without the consent or authorization of the dealer owners. This practice is not only unethical but also undermines the integrity of the dealership operations. It has been observed that certain bank officials might be complicit in these actions, leading to a situation that resembles a scam. This practice was highlighted in a recent meeting between the FADA Assam Chapter where our CEO Mr. Saharsh Damani was also present along with State Chairperson Mr. Arvind Goel and Regional Directors along with SBI Chief General Manager for North East Mr. Vincent MD. Mr. Vincent assured that an internal enquiry will be done to take corrective measures.

Regarding the 3rd edition of F&I Summit recently concluded in Mumbai, FADA Maharashtra under the leadership of Mr. Sachin Mahajan organized a special morning session on GST for registered participants to address their concerns. The session was conducted by Mr Nitesh Jain, Founder & Managing Partner of NJ Jain & Associates, and was well-received by the dealers. FADA will soon share the presentations from this session on our website for the benefit of all our members.

Friends, the Finance & Insurance Summit was a resounding success, attracting over 500 participants, 26 speakers, and 10 partners. We were privileged to have Dr Venkatraman Anantha Nageswaran, Chief Economic Adviser, Government of India, join us live from his New Delhi office during the inaugural session. Despite his pressing commitments due to the formation of the new government, he graciously agreed to address our community. Also present on the dais during the Inaugural Session were two distinguished Guests of Honour: Mr Ramesh Iyer, Director of the Finance Industry Development Council (FIDC); and Mr Rajan Pental, Executive Director of Yes Bank.

The summit focused on addressing critical issues in the automotive sector and exploring innovative solutions in finance and insurance. As the automotive industry drives economic growth, its success is closely tied to the strength of the financial and insurance services we use and provide to our customers. In this era of rapid technological advancements and evolving consumer preferences, the collaboration between auto dealers and financial and insurance partners is more crucial than ever. The insightful panel discussions at the summit were designed to tackle these challenges, and I hope you found them both meaningful and enriching.

The summit also included sessions on dealership IPOs and a motivational talk on Success & Peace.
The Golden Dealership Award was conferred on M/s Narbheram Motors Pvt Ltd, Jamshedpur, for their over 50 years in the auto retail business. The dealership was established in 1920 & is currently run by the 3rd generation.

In the inaugural Dealer Satisfaction Study Awards 2024 for F&I companies, nine awards were conferred on the Wholesale Finance, Insurance, and Retail Finance companies.

The 5th edition of the FADA Dealership Excellence Awards 2024 culminated with 48 dealerships receiving awards in 16 categories. Initially, there were 72 awards across 24 categories. I extend my heartfelt gratitude to our esteemed Jury members for their dedication and effort in selecting the winners for these prestigious awards. The Jury included Mr Arun Malhotra, Auto Industry Veteran; Mr Girish Mirchandani, Owner, Transtopics India; Mr Hemal N Thakkar, Senior Practice Leader & Director, Crisil Ltd; Dr Manohar Bhat, Professor & Area Chair (Marketing), Lal Bahadur Shastri Institute of Management, Delhi; Mr Ramesh Iyer, Director, FIDC; and Mr Sergius Barretto, Managing Editor, Autocar India. They devoted 4 hours each day for 4 days for the Pre-Jury Round and 2 days for the Grand Jury Round to shortlist the winners for what are considered the Oscars of Auto Retail.

This entire process was made seamless by the active contributions from the PremonAsia team: Mr Rahul Sharma and Mr Shobhit Verma, who not only screened all the nominations received but also worked to compile the scorecards to list out the finalists. The glamour of the Dealership Excellence Awards was heightened by our celebrity chief guest, Mr Arbaaz Khan, renowned actor, producer, and director of Indian cinema. I express my sincere thanks and gratitude to each one of you.

I take this opportunity to thank the speakers of the summit: Mr Akhilesh Kumar Roy, Executive VP and Business Head (Auto Loans & Inventory Finance), HDFC Bank; Mr Atul Mehta, Head Key Accounts, Go Digit General Insurance Limited; Mr Debasish Kar, Business Head – Auto Sector Loan, Mahindra Finance; Mr Irfan Tamboli, Senior VP, Business Head - Supply Chain Finance, Working Capital Finance & 2W - Vehicle Finance, Retail Assets, Axis Bank; Mr John K Paul, Whole Time Director, Popular Vehicles & Services Ltd; Mr John Verghese, CFO, Popular Vehicles & Services Ltd; Mr Lavesh Sardana, Country Head- Retail Assets & Debt Management, Yes Bank; Mr Nitesh Jain, Founder & Managing Partner, NJ Jain & Associates; Mr Praveen Tiwari, Managing Director, ATS-ELGI Limited; Mr Rajan Pental, Executive Director Yes Bank; Mr Rajendra Kumar Setia, MD & CEO, SK Finance Limited; Mr Ramesh Iyer, Director of the Finance Industry Development Council (FIDC); Mr Rohit Daga, Business Head - Motor Insurance, ICICI Lombard General Insurance Co. Ltd; Mr Santosh Dhanasekharan, Vedanta World; Ms Sreedevi Sreedharan Nair, General Manager, The New India Assurance Co. Ltd; Mr Sharvik Shah, Chairperson FADA Rajasthan and Director, Rajesh Motors (Auto) Pvt Ltd; Mr Suraj Rajappan, Business Head - New Car Retail & Dealer Finance, Kotak Mahindra Prime Ltd; Mr Soham Misra, Chairperson FADA West Bengal and Director, One Auto Pvt Ltd; Mr Vikas Mediratta, Business Head-MISP, Mahindra Insurance Brokers Ltd; and Mr Vivek Sahai, Sales Manager - Vehicle Refinish, India & Sri Lanka, AkzoNobel.

My heartfelt thanks and gratitude go out to my friends in the Managing Committee, Executive Committee, Governing Council, FADA Past Presidents; FADA Maharashtra State Chapter members led by Mr. Sachin Mahajan; and the FADA Secretariat under the leadership of Mr. Saharsh Damani. Without their unwavering support and cooperation, this event could not have been such a success. A special thanks for Mr Amar Jatin Sheth – Treasurer FADA for making this event a resounding success & creating new landmark every year. I dream of making this event similar to Auto Summit that we have in Delhi where Dealers can collaborate with our two most important pillars of Retail Industry – Finance & Insurance and bring a harmony within us.

In the near future, FADA will conduct elections for State Chairpersons. I urge each state to nominate active Dealer Principals willing to dedicate their time and efforts for the advancement of the dealer fraternity at both the state and national levels. Do sit & discuss with Dealer Friends of your state to establish a fruitful leader & team for the next session. Further details will be communicated through the State WhatsApp groups.

I conclude with the words of Helen Keller, "Alone we can do so little; together we can do so much".

Thanking you,

 

Manish Raj Singhania
President FADA