FADA’s Push for a Retail Trade Protection Act Gains Momentum

Dear Dealer Friends,

Global events such as 50% tariff being imposed on India by USA and rising oil prices are creating challenges with supply chains and inflation. While India remains resilient, these factors are impacting costs, interest rates, and buyer confidence. Domestically, despite steady economic growth and generally favourable monsoon rains, retail lending remains tight and rural demand is uneven due to weather and logistical hurdles. As dealers, it’s important to stay vigilant, work closely with financiers, and manage inventory carefully.

FADA is actively monitoring these developments and will keep championing dealer interests in all key policy discussions as we remain fully committed to advocacy, building industry partnerships, supporting dealer welfare, and promoting skill development. I’m pleased to share some major initiatives taken by the Federation recently.

One of the most significant developments was our meeting with the Hon’ble Governor of the Reserve Bank of India, Mr Sanjay Malhotra, where a FADA delegation comprising Mr Sai Giridhar, Vice President FADA; Mr Amar Sheth, Secretary FADA and Mr Saharsh Damani, CEO FADA presented key concerns affecting dealer financing. We raised issues such as the need for timely transmission of repo rate cuts, inclusion of dealerships under Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE), reconsideration of the 100% risk weight on auto loans, and the unethical practice of banks offering incentives directly to dealership staff. The Hon’ble Governor gave us a patient hearing and assured that the RBI would actively examine these issues.

In addition, FADA’s push for a Retail Trade Protection Act gained momentum through meetings with Shri Piyush Goyal, Hon’ble Minister of Commerce & Industry; Shri Arjun Ram Meghwal, Hon’ble Union Minister of Law & Justice; and Shri S C L Das, Secretary, Ministry of MSME. Our delegation, including Mr Sushil Poddar, President, CWBTA, Mr Saharsh Damani, CEO-FADA, and myself, also flagged the delays and inefficiencies in CSD vehicle procurement, receiving positive feedback and a commitment to raise the matter further with the Ministry of Defence and DPIIT.

Strengthening FADA’s Southern presence, I’m pleased to share that the original Gift Deed and property papers of MVAIA were formally handed over to FADA at Khivraj Motors Head Office, Chennai. Representing FADA on this significant occasion were Mr Amar Sheth, Secretary, FADA and Mr Saharsh Damani, CEO, FADA. This marks an important milestone in the formal transfer of property ownership from MVAIA to FADA, further cementing our regional footprint. We are working hard to refurbish the office building so that, the next FADA Vyapar event can happen in Chennai and a meeting of Governing Council Members can be held at the new property.

Two-wheeler dealers in several states are struggling to maintain viability due to the growing challenge of Multi Brand Outlets (MBOs). To address this, the Chairperson- FADA West Bengal, Mr Rohit Chowdhury; Mr Shailender Luthra, Chairperson- FADA Delhi, and Mr Vivek Garg, Chairperson FADA Chhattisgarh held meetings with two-wheeler chapter members in their respective states to discuss concerns and explore solutions. FADA was also quoted in media highlighting the illegal MBO menace in such locations.

Friends, the Dealer Satisfaction Study 2025 for OEMs is LIVE! Your feedback is vital to shape policy, operations, and strategies. Rest assured, your inputs are confidential but will help create a strong impact.

Meanwhile, FADA continues to strengthen its engagement with OEMs. Recently, I, along with Mr Pradeep Agarwal, Treasurer, FADA, and Mr Saharsh Damani, CEO FADA met with Mr Yogesh Mathur, Director – Sales & Marketing, Honda Motorcycle & Scooter India.

I want to emphasize that FADA’s ongoing efforts, combined with the insights from the qualitative DSS’25 report, will go a long way in further strengthening OEM-dealer relations. This report will highlight the key concerns of dealers, helping foster better understanding and collaboration.

Preparations are in full swing for the 4th Finance & Insurance Summit and the 7th Auto Retail Conclave, scheduled for September 10, 2025, at Hotel Le Meridien, New Delhi. A day prior, we will also hold FADA’s 61st Annual General Meeting at the same venue.

We are honoured to share that Mr H D Kumaraswamy, Union Minister for Heavy Industries, Mr. Piyush Goyal, Union Minister of Commerce and Industries and Mr. Nitin Gadkari, Union Minister of Road Transport & Highways have confirmed their presence for the twin events. Guests of Honour- Mr Shailesh Chandra, President SIAM & Mr Vikrampati Singhania, President Designate, ACMA have also confirmed their presence for the Auto Retail Conclave. Program details are being finalised, and we will keep you informed as things progress.

The Finance & Insurance Summit will conclude with the Dealer Satisfaction Study Awards 2025 for Finance and Insurance companies, followed by the Oscars of Indian Auto Retail — FADA’s Dealership Excellence Awards 2025.

Meanwhile, the Auto Retail Conclave will close with the prestigious Dealer Satisfaction Study Awards 2025 for OEMs, recognising the best among automotive manufacturers.

These events offer a unique opportunity for the auto retail community to engage with OEM leaders, heads of finance and insurance companies, and senior bureaucrats. I hope you’ve registered for these important gatherings that proudly showcase the collective strength and voice of India’s auto retail sector before the entire automotive ecosystem.

In terms of employment and skilling, FADA Academy under chairmanship of Mr Manish Raj Singhania, in collaboration with ASDC and Hero MotoCorp, organized multiple job fairs under Project Saksham — a CSR initiative aimed at creating opportunities for certified, job-ready women professionals. Successful events were held in Bihar & Chennai. We also saw the continuation of the Executive Leadership Program for GenX members at NMIMS Mumbai.
FADA Academy also expanded its digital footprint through a well-received webinar on PF & ESI compliance for dealerships, and held a special session for the Women in FADA (WiF) vertical in partnership with IIT Delhi, led by Ms. Rashmi Kale, Chairperson, WiF.

Additionally, on 9th September, Chairperson WiF, Ms Kale is organizing a motivational session exclusively for its members attending the AGM at the FADA office. Registration is mandatory to participate, so if you haven’t registered yet, please do so at the earliest.

On an external platform, I had the privilege of participating in a CRISIL Ratings webinar on the future of auto dealerships, where we discussed the challenges and opportunities of the evolving retail landscape.

Across the states, our regional leaders actively engaged with local governments.

FADA Delhi under Mr Shailender Luthra worked with the transport department to successfully resolve series issue at few authorities.

FADA Chhattisgarh, led by Chairperson Mr Vivek Garg and Two-Wheeler State Director- Mr Kailash Khemani, met with Mr S Prakash, Transport Secretary of Chhattisgarh, to discuss legal action against MBO outlets and the OEMs supporting them.

Additionally, FADA Chhattisgarh WiF Director - Ms Tawanpreet Kaur Bhasin, along with WiF members and Chairperson Mr Garg, met Raipur’s RADA leadership to explore joint initiatives on HR development, Sports Day, and CSR activities.

Meanwhile, FADA Gujarat under Chairperson Mr Pranav Shah submitted its representation against the imposition of municipal road taxes on new vehicle registrations.

FADA Jharkhand Chairperson, Mr Govind Mewar, collaborated with State Transport officials to expedite the implementation of the new CMV Rules, 1989, aiming to promote ease of doing business in the state.

In Haryana, Chairperson Mr Ashish Bambha led a delegation that met with Hon’ble Transport Minister, Shri Anil Vij to seek reinstatement of the EV subsidy and other policy reforms.

On the sustainability front, FADA Madhya Pradesh, led by Chairperson Mr Ashish Pandey, organized a record-setting plantation drive with over 4,000 trees planted in a single day in Bhopal.

FADA Maharashtra, under Chairperson Mr Sachin Mahajan, hosted a vibrant regional meet in Nashik with participation from five districts.

In Rajasthan, Chairperson - Mr Sharvik Shah along with Mr Sai Giridhar, Vice President FADA gave a representation to the Principal Secretary, Road Safety & Transport, Rajasthan regarding Issuance of Instructions for Implementation of Rule 55A of CMVR, 1989 notified vide GSR 901(E) dated 22.12.2022.

In Tamil Nadu, FADA Executive Committee Member – Mr Bharat Chordia, hosted a dealer training session on the Dealer Authorization Certificate (DAUC) with the participation of officials from the Transport Department.

In Uttar Pradesh, Chairperson Mr Pratik Jain successfully resolved the issue of trade suspension affecting 25 dealers after detailed discussions with the Transport Commissioner.

FADA West Bengal, under Chairperson Mr Rohit Chowdhury, resolved issues regarding undelivered driving licences and smart cards, and also engaged unauthorized workshops to introduce them to government welfare schemes.

Friends, all these efforts reflect our shared commitment to strengthening auto retail in India. Your active participation continues to be the driving force behind FADA’s success. Let us remain united, proactive, and visionary as we shape the future of our industry together.

Warm regards,

CS Vigneshwar
President – FADA