FADA's Diamond Jubilee Annual General Meeting and 6th Auto Retail Conclave Concludes with Great Success!

Dear Friends,

As I assume the role of the 37th President of FADA, I want to express my heartfelt gratitude for the trust you have placed in me to lead our Auto Dealer Community. I am pleased to introduce my esteemed colleagues in the Managing Committee: Mr. Sai Giridhar, Vice President; Mr. Amar Jatin Sheth, Secretary; and Mr. Pradeep Agarwal, Treasurer.

The new Governing Council, formed during FADA’s 60th AGM, comprises State Chairpersons, members nominated by state associations, and co-opted members. Together, we will work diligently to help FADA achieve new milestones.

Our Diamond Jubilee celebrations highlight FADA’s remarkable growth and the advancements we’ve made in the automotive retail sector in India. Over the years, we have achieved significant progress in policy advocacy, data sharing, and regulatory reforms.

Looking ahead, two key elements will shape our journey: Passion and Intent. The passion you bring to your dealerships and the intent behind every decision you make will be the driving force of our collective success. However, passion alone is not enough - we must be purposeful and strategic in our efforts, especially in areas critical to the future of auto retail in India.

FADA’s top priorities for the next two years include the Retail Protection Act and the Model Dealer Agreement (MDA). These are vital to securing the future of dealerships across the country. I urge my fellow dealers to engage with OEMs to expedite the adoption of the MDA and to advocate for the Retail Protection Act with Members of Parliament in your constituencies.

Collaboration with all stakeholders - financiers, insurance companies, and suppliers - is essential for sustainable growth. We are also pushing for an auto policy that includes subsidies under schemes like FAME and EMPS. Our work with the Ministry of Heavy Industries on the PM e-Drive Scheme aims to provide e-vouchers to customers upon vehicle registration, promoting electric vehicle sales. I also urge State Governments to support this initiative by offering tax concessions on new, fully built electric vehicles to inspire more purchases.

Dealers are the first customers of OEMs. To enhance OEM-dealer relationships, we conduct the Dealer Satisfaction Study (DSS). Additionally, we have introduced the Customer Experience Index (CEI) Study, which covers sales, product quality, and after-sales service. OEMs should take cognizance of these reports as they reflect the health of their relationships with both dealers and end customers. Success is sure to follow when both dealers and customers are satisfied!

I am thrilled to report that FADA’s 60th Diamond Jubilee Annual General Meeting and the 315th Governing Council Meeting concluded successfully. The 6th Auto Retail Conclave, themed “Transforming Tomorrow: Elevating Customer & Revitalizing Dealer Synergy,” was also a resounding success, with over 500 participants and 31 speakers, supported by 11 partners.

We were honoured to have esteemed guests at the Auto Retail Conclave’s Inaugural Session, including Mr. Nitin Gadkari, Hon'ble Union Minister for Road Transport & Highways, who shared a video message. Union Ministers Mr. H.D. Kumaraswamy, Minister of Heavy Industries & Steel, and Mr. Bhupender Yadav, Minister of Environment, Forest and Climate Change, graced the event. Special Guests included Dr. V. Anantha Nageswaran, Chief Economic Adviser, Ministry of Finance; Ms. Shradha Suri Marwah, President, ACMA & CMD, Subros; and Mr. Kartick V. Nagpal, President, Rosmerta Group.

During my Presidential address, I requested Hon’ble Minister Mr. Nitin Gadkari to issue directives for the full implementation of the CMVR and thanked him for the world-class highways and the new CMVR Act. I also appreciated the introduction of the five-year Trade Certificate, which has eased dealership operations.

I expressed my gratitude to Hon’ble Minister for Heavy Industries, Mr. H.D. Kumaraswamy, for his work on auto policy and subsidies, and urged him to consider legislative safeguards to prevent abrupt OEM exits. I also highlighted the significant employment provided by dealerships.

To Hon’ble Minister for Environment, Mr. Bhupender Yadav, I requested support for reclassifying auto dealer workshops from the Orange Zone to the Green Zone, emphasizing our environmental initiatives.

Mr. Kumaraswamy and Mr. Yadav also unveiled FADA Digest 2024, FADA’s Corporate Video, and the Auto Dealer Day Theme & Logo for 2024, which promotes Employee Health Check-ups. The 19th of September, FADA’s Founding Day, is celebrated nationwide as Auto Dealers Day. I encourage you to share your observances and CSR initiatives with us to showcase the positive impact we make on our community.

During the Inaugural Session, Mr. Manish Raj Singhania, Immediate Past President of FADA, and Mr. Vinkesh Gulati, Former Chairman, FADA Academy & Research, were honoured with a citation and a kaleidoscope commemorating their two-year tenures, presented by the Union Ministers.

The Conclave featured two panel discussions: a CxO Fireside Chat on the Customer Experience Index (CEI), focusing on customer needs across sales, after-sales service, and product quality in the passenger vehicle segment; and a panel on the Dealer Satisfaction Study (DSS’24), highlighting the strengths and opportunities in the PV, 2-W, 3-W, and CV segments.

A Keynote address by MHI Addl. Secretary Mr. Hanif Qureshi emphasized on collaboration on policies introduced by the Ministry of Heavy Industries. He also thanked FADA for associating closely with MHI in recent times.

During the Conclave, we signed an MoU with DigiELV, Meta Materials Circular Markets (MMCM), aimed at addressing End-of-Life Vehicles (ELVs) in India. This partnership will establish a specialized user category exclusively for OEM-authorized dealers, with access routed through FADA. This will enable dealers to benefit from CD utilization and facilitate quicker customer conversions.

We also introduced the new Chairman of FADA Academy & Research, Mr. Manish Raj Singhania; the new GenX Chairman, Mr. Rishabh Sanghi; and the new Chairperson of Women in FADA (WIF), Ms. Rashmi Kale, showcasing their vision and future plans for the dealership community.

Additionally, we presented awards to the winners of FADA's Dealer Satisfaction Study 2024, conducted in association with PremonAsia, a Singapore-based consumer-insight consultancy. We also awarded the Golden Dealership Award to M/s Malik Automobiles for completing over 50 years in auto retail business. The inaugural Customer Experience Satisfaction (CEI) 2024 awards were also presented in PV categories across sales, product quality, and after-sales service.

In other significant activities this month, members of the Managing Committee and I attended the Annual Conclaves of SIAM and ACMA at Taj Palace, New Delhi along with Mr. Manish Raj Singhania and Mr. Saharsh Damani.

Mr. Sachin Mahajan, Chairperson, FADA Maharashtra, and Mr. Pritesh Bhai Shah recently met Deputy Chief Minister Devendra Fadnavis to discuss the implementation of CMVR provisions for the online registration of fully built-up commercial vehicles. Mr. Fadnavis assured favourable action.

Three major announcements were made this month: a) OEMs will transition to retail reporting of monthly sales, moving away from wholesale reporting at the factory gate; b) The GST Council has allowed ITC on demo vehicles used for business advancement; c) The Delhi Transport Department has permitted registrations for Non-Corporate, Non-Transport categories by self-registered dealers with Aadhaar cards showing addresses outside Delhi, and data entry for fully built transport vehicles.

These developments mark significant milestones for FADA, achieved through persistent follow-ups and representations.

Our CEO, Mr. Saharsh Damani, along with FADA Delhi dealer members, attended a planning meeting with officials from the Ministry of Heavy Industries to discuss the FAME 2 celebration and the launch of the PM eDrive Scheme. FADA has been invited to make a presentation on September 18 at Bharat Mandapam.

Mr. Saharsh Damani also met with Tractor Dealers of M/s Escorts Kubota Limited at FADA’s office to understand their concerns and work out an amicable resolution.

Additionally, Mr. Dharma Teja, Chairperson of FADA Karnataka, met with Royal Enfield dealers in the state to provide updates and discuss FADA’s ongoing initiatives.

As I conclude this edition of my monthly note, I want to emphasize to all my dealer colleagues that our future success will hinge on your passion and intent. The way we address today’s challenges will shape the landscape for future generations of dealers. I urge every dealer, manager, and dealership employee to channel their passion into decisive action - united in our mission to protect our dealerships and the customers we serve.

As your President, my personal legacy is secondary to the collective legacy we can build together—a legacy that ensures the protection and prosperity of auto retail in India. The decisions we make today will determine the future of our industry for years to come. I urge you to engage with FADA and contribute to the transformation we are striving for. Together, we can build a legacy that will be remembered for generations.

I am committed to representing every one of you - our dealers, our industry partners, and our customers. With your support, I have no doubt that together, we can navigate the challenges ahead and create a brighter future for all.

Thank you and warm regards,

C.S. Vigneshwar
President, FADA