Dear Friends,

The global geopolitical landscape has become increasingly volatile, with multiple conflicts and policy shifts directly impacting the automotive industry worldwide. The ongoing wars—Russia’s invasion of Ukraine and the recent escalation between Israel and Iran—have severely disrupted critical supply chains, driving up the costs of raw materials, fuel, and logistics. Blockades, sanctions, and damaged infrastructure have resulted in severe shortages of essential commodities, including metals and energy, which are vital for automotive manufacturing. These disruptions are already reverberating across global supply networks, and their effects are expected to intensify in the coming months.

Compounding these challenges are rising protectionist measures, such as the renewed push for steep U.S. tariffs and China’s recent tightening of export controls on rare earth materials—key inputs for electric vehicles and advanced automotive components. Indian auto and auto-ancillary companies are particularly vulnerable, as China controls over 70% of global rare earth production and more than 90% of refining capacity. The new export licensing regime has already doubled the waitlist for Indian firms seeking critical magnet imports, putting production schedules at risk if supplies are not restored soon. If these bottlenecks persist, we could face vehicle scarcity in the market, delayed product launches, and a slowdown in the sector’s growth trajectory. The coming months will demand coordinated efforts between industry stakeholders and policymakers to navigate these unprecedented headwinds and ensure business continuity.

In these turbulent times, with global headwinds threatening our domestic market, it is imperative that every dealership operates under a robust, fit-for-purpose set of Standard Operating Procedures. These SoPs must be rigorously evaluated against the current industry environment—factoring in supply-chain volatility, steep input-cost inflation, and shifting consumer sentiment—and tested for practical applicability across both sales and after-sales functions. Dealers should undertake a candid gap analysis: where existing processes no longer align with real-world exigencies, they must be promptly redefined. Only by institutionalizing agile, forward-looking protocols can we safeguard business continuity and resilience; those who delay or default may find their operations unsustainable in the face of a broader slowdown.

Association Activities

I am delighted to share the encouraging developments and impactful initiatives led by FADA over the past month.

1. FADA Dealership Excellence Awards 2025: The Final Jury Round has concluded successfully. My sincere gratitude to our esteemed jury - Mr. Dilip Chenoy (Chairperson, Bharat Web3 Association), Mr. Girish Mirchandani (Owner, Transtopics India), Mr. Hemal N. Thakkar (Senior Practice Leader & Director, CRISIL), Dr. Manohar Bhat (Professor & Area Chair, Lal Bahadur Shastri Institute of Management), Mr. N. Raja (Former MD & CEO, Toyota Financial Services India), and Mr. Shapur Kotwal (Deputy Director, Autocar)—for their expertise and commitment. Special thanks to our Knowledge Partner, Team PremonAsia. The winners will be announced at the Finance & Insurance Summit on September 10, 2025, at Hotel Le?Méridien, New Delhi which will be held along with Auto Retail Conclave at the same venue.

2. Dealer Satisfaction Study 2025 (Finance & Insurance): The survey is nearing its close. I urge all members to complete it to shape a comprehensive, qualitative report capturing dealer expectations from Finance & Insurance companies. The results and felicitation ceremony will also take place during the Finance & Insurance Summit on September 10, 2025, in New Delhi.

3. Executive Leadership Program (GenX, 3rd Batch): FADA Academy launched the third batch at NMIMS, Mumbai. The inauguration was graced by Prof. Seema Mahajan (NMIMS), Mr. Manish Raj Singhania (Chairman, FADA Academy), Mr. Amar Sheth (Secretary, FADA), Mr. Rishabh Sanghi (Chairman, GenX), and Mr. Vikas Raj (Dean, FADA Academy). With 18 vibrant participants, this program exemplifies our commitment to grooming future leaders in automobile retail.

4. FADA-ASDC Job Fair (Agra): The job fair saw over 300 participants, underscoring FADA’s role in promoting employment and strengthening industry–academia collaboration.

5. Women in FADA (WiF) Initiatives: Under the leadership of Ms. Rashmi Kale (Chairperson, WiF), State Directors and members have engaged in dialogues to understand learning preferences and program expectations. In collaboration with NMIMS, Mumbai, and IIT Delhi, we are developing tailored in person and online learning modules. WiF participation in the auto-retail survey has grown to 58 members, reflecting deepening engagement.

State Chapter Updates

• Delhi: Under Chairperson Mr. Shailender Luthra, the chapter addressed new number series allocation challenges and discussed the roll out of dead spare-part sale initiative for Royal Enfield dealers in Delhi NCR, our newest initiative in association with SpareCare.

• Maharashtra: Chairperson Mr. Sachin Mahajan and Secretary Mr. Amar Jatin Sheth represented FADA at a consultative meeting on Proof of Parking and Congestion Management Policy, effectively voicing dealer concerns.

• Rajasthan: Under Chairperson Mr. Sharvik Shah and Vice President Mr. Sai Giridhar, the chapter hosted the FADA x Lawyered event on legal awareness and compliance, supported by Regional Directors and CEO Mr. Saharsh Damani.

• Uttar Pradesh: Chairperson Mr. Pratik Jain successfully resolved the trade suspension of 25 dealerships with the Transport Commissioner, followed by a webinar to maintain dialogue with senior officials.

• Gujarat: The chapter represented member concerns over Municipal Road Taxes on vehicle registrations, advocating for fair and transparent regulations.

• Madhya Pradesh: Chairperson Mr. Ashish Pandey spearheaded press engagements on road tax reduction, VAT on fuel, and GST-linked double taxation, aiming to enhance the state’s logistics-hub appeal.

• West Bengal: Under Chairperson Mr. Rohit Chowdhury, FADA facilitated the delivery of pending driver’s licenses and smart cards, and engaged with government sessions to safeguard 2W dealer interests.

National Advocacy

Alongside CEO Mr. Saharsh Damani and Mr. Sushil Poddar (President of Confederation of West Bengal Traders Association), I met Shri Sunil Singhi (Chairman, National Traders Welfare Board), Shri Arjun Ram Meghwal (Union Minister for Law and Justice), and Mr. S.?C.?L.?Das (Secretary, MSME) to advance the Retail Trade Protection Act and address CSD vehicle procurement inefficiencies. We have been invited to submit a detailed white paper and assured of support at the Ministries of Defence and Commerce.

We also issued two national advisories this month—on HSRP affixation handover and accurate VAHAN database entries—to promote strict compliance. I request all members to support these regulations and uphold trade integrity.

I was honored to participate in CRISIL Ratings' webinar titled “Automobile Dealerships: From Acceleration to Alignment,” a valuable forum on digital transformation and OEM–dealer synergy.
In closing, I extend my heartfelt thanks to each of you. Your relentless dedication keeps FADA strong and impactful. Let us continue to move forward with unity, purpose, and a shared vision for a resilient future in India’s automobile retail sector.

Warm regards,

CS Vigneshwar
President, FADA