FADA Thanks PM for GST 2.0: Boost to Affordability & Auto Retail

Dear Friends,

On behalf of 15,000 dealerships across 30,000+ outlets employing approximately 50 lakh people, I would like to congratulate the Hon'ble Prime Minister, Shri Narendra Modi ji, for announcing GST 2.0 — a significant reform aimed at making everyday items more affordable for citizens across the country.

As you are aware, the Government has recently revised the GST structure, reducing the number of slabs to two — 5% and 18% — while maintaining 40% for luxury items. In response, FADA promptly issued an Advisory to share key highlights with fellow dealers and also urged the auto dealer community to exercise caution in managing inventory, as the Compensation Cess is set to be discontinued from September 22, 2025, when the new GST regime comes into effect.

Post the formal notification on the revised rates, FADA is in discussion with the Government on the lapsing Compensation Cess which should either be refunded back or allowed to adjust against CGST or IGST as the discontinuation of Cess poses a serious challenge, as dealers will no longer be able to utilise the credit, resulting in significant working capital stress across dealerships.

To ensure our concerns were heard at the highest levels, FADA held meetings with Hon'ble Union Ministers Mr. Piyush Goyal (Ministry of Commerce & Industry) and Mr. H.D. Kumaraswamy (Ministry of Heavy Industries), and also sent representations to the PMO along with meeting PM Advisor Shri Tarun Kapoor, the Hon'ble Finance Minister, and the Hon'ble Minister of Road Transport & Highways, highlighting the need for transitional provisions to address the accumulated Compensation Cess credit under GST 2.0. We also recently met GST Council GoM Chairman Mr. Samrat Choudhary who is also Deputy CM of Bihar on this matter.

In parallel, we convened an emergency meeting of the Governing Council and conducted a webinar to brief members on the developments and actions taken by FADA. During the session, Mr. Jatin Harjai, our GST consultant, provided insights and addressed individual queries to ensure a clear understanding of the situation. Alongside my Vice President- Mr Sai Giridhar; Secretary - Mr Amar Sheth; Treasurer- Mr Pradeep Agarwal; and CEO, FADA - Mr Saharsh Damani, I encouraged members to stay in close touch with FADA for any further clarifications. I also urged all members to leverage their regional networks and engage with local MPs and MLAs to sensitise them about the potential impact the abrupt cessation of Compensation Cess could have on the viability of dealership operations. Additionally, to assess the magnitude of the issue, FADA circulated a Google feedback form with its members to capture data on the exact GST Cess balances that risk lapsing in the absence of a transitional provision to carry forward these credits. Apart from this, we also circulated a revised Google form to capture the stock in hand and the cess amount which it accounted for.

Friends, September was a significant month for FADA, marked by several key meetings and events. The 61st Annual General Meeting of the Federation was held on September 9, 2025, at Hotel Le Meridien, New Delhi, and witnessed strong participation from dealers across the country — a testament to the unity and strength of our dealer community. The AGM was followed by the 319th Governing Council Meeting, further reinforcing our collective commitment to the growth of the auto retail industry.

On the following morning, September 10, 2025, FADA successfully hosted the 4th Finance & Insurance Summit, which had earlier been postponed due to Operation Sindoor in June. The Summit drew an impressive turnout of over 700 participants, including dealers, senior leaders from banking and insurance companies, OEM representatives, and members of allied industries. The event featured six engaging sessions, 40+ eminent speakers, and included the presentation of the FADA Dealership Excellence Awards 2025 and the Dealer Satisfaction Survey 2025 results for Finance & Insurance companies.

The FADA Dealership Excellence Awards attracted over 500 nominations from dealers across the nation, culminating in 34 winners across 17 categories. Meanwhile, the Dealer Satisfaction Study 2025 for Finance & Insurance Companies received 1,500 responses nationwide, leading to recognition of 9 winners in 3 key categories. The scale and enthusiasm around these initiatives reflect the growing engagement of our members and the increasing collaboration within the auto retail ecosystem.

On September 10, 2025, post-lunch at the same venue, FADA hosted the 7th Auto Retail Conclave on the theme “Self-Sustaining Success: Transforming Auto Retail for Naya Bharat.” The event began with a video address by Chief Guest Mr. H D Kumaraswamy, Hon'ble Union Minister for Heavy Industries, who highlighted India's rapid transition towards clean mobility and its growing global aspirations in the auto sector. Sharing the dais were key industry leaders, including Mr Shailesh Chandra (SIAM), Mr Kartick V Nagpal (Rosmerta), Mr CS Vigneshwar, Mr Sai Giridhar, and Mr Saharsh Damani. The session focused on enhancing OEM–dealer collaboration, with innovation and customer trust as future growth drivers.

A fireside chat followed with Special Guest Mr Nitin Gadkari, Hon'ble Union Minister for Road Transport & Highways, moderated by Mr Pankaj Doval, National Editor, The Times of India. Mr Gadkari emphasised that India's shift to sustainable mobility is ongoing, citing developments in EVs, hydrogen-powered vehicles, and scrappage-based resource recovery. He affirmed India's ambition to become the world's number one - auto market within five years, driven by strong demand, skilled manpower, and environmentally conscious policies.

In the evening, Mr Piyush Goyal, Hon'ble Union Minister for Commerce & Industry, delivered the keynote address. I highlighted the urgent need for clarity on Compensation Cess to avoid disruptions during the festive season, with potential dealer losses exceeding ?2,500 crore. Mr Goyal assured support while urging OEMs to take shared responsibility. He also spoke about India's expanding FTAs, rising global investment, and praised ACMA for its confidence and global competitiveness.

The other sessions during the conclave included: FADA Two-Wheeler Vertical Progress & Future Road Map; FADA Academy Progress Review and Strategic Outlook; FADA GenX Milestones and Path Forward; Women in FADA (WIF) Progress Review and Future Vision; Driving Trust, aiding Indian Mobility;  Announcement regarding adoption of the Model Dealer Agreement drafted by FADA by HMSI; Panel discussion on Dealer Satisfaction Study (DSS'25): Strengths & Opportunities; Presentation of Awards to OEMs based on the outcome of the Dealer Satisfaction Study 2025.

With regards to DSS'25 for OEMs, I wish to add this time we received over 1800+ responses & 16 OEMs were awarded across 6 categories. Crème de le Crème winner was JSW MG Motor India Pvt Ltd.

I wish to thank all the speakers who took out time & shared their insight with us -  Mr H D Kumaraswamy, Hon'ble Union Minister of Heavy Industries & Steel, Govt. of India; Mr Nitin Gadkari, Hon'ble Union Minister for Road, Transport & Highways, Govt. of India; Mr Piyush Goyal, Hon'ble Union Minister of Commerce and Industry, Govt. of India;  Mr Akhilesh Kumar Roy, Executive VP and Country Head (Auto Loans & Inventory Finance), HDFC Bank; Mr Anil Sekhar, Head, Salesforce Excellence, Commercial Vehicles, Tata Motors; Mr Ashutosh Varma, Chief Business Officer - IBU, Hero MotoCorp; Mr Bharat Kumar Chordia, FADA EC Member & Director, Khivraj Automobiles; Ms Garima Misra, FADA EC Member & MD, Landmark Lifestyle Cars; Mr Hormazd Sorabjee,  Editor - Autocar India; Mr Jyoti Malhotra, MD, Volvo Car India; Mr Kartick V Nagpal, President, Rosmerta Group; Mr Kush Mehra, ED, President and Chief Business Officer - Digital Infrastructure & Transaction Platform, Pine Labs; Mr Manish Raj Singhania, Chairman - FADA Academy & Research; Mr Maneet Singh, Zonal Coordinator - FADA GenX; Mr Nalinikanth Gollagunta, CEO, Automotive Division, M&M; Mr Niharika Singh, ED, IFFCO-TOKIO General Insurance; Mr Niraj Singh, Founder & CEO, Spinny; Mr Pankaj Doval, National Editor, The Times of India; Mr Pradeep Agarwal, Treasurer - FADA and Chairman - FADA-Two-Wheeler Vertical; Mr Rahul Sharma,  COO & Director, PremonAsia India; Mr Rajendra Kumar Setia,  MD & CEO, SK Finance; Ms Rashmi Kale, Chairperson, WIF; Ms Rema Devi V, General Manager, The New India Assurance Company; Mr Sachin Shah, FADA GC Member & Director, Sutaria Auto Centre; Mr Sachin Shilavat, President & Head - OEM, Automotive Alliance, Reliance General Insurance; Mr Sanjeev Kumar, President and Head - M&HCV, Ashok?Leyland; Mr Shailesh Chandra, President SIAM and MD, Tata Motors Passenger Vehicles and Tata Passenger Electric Mobility; Mr Subhasish Mazumder, President & Head - Motor Distribution, Bajaj Allianz General Insurance; Ms Sukhvinder Kaur, Chief General Manager - Retail Loans, State Bank of India; Mr Tarun Garg, Whole-time Director and COO - Sales, Marketing, Service & Product Strategy, Hyundai Motor India; and Mr Yogesh Mathur, Director - Sales & Marketing, Honda Motorcycle & Scooter India.

I would also like to thank our partners: Title Partner: Rosmerta Technologies; Platinum Partner: Spinny; Gold Partners: AU Small Finance Bank and SK Finance; Silver Partners: Chola MS General Insurance; HDFC Bank; HDFC Ergo General Insurance; ICICI Lombard General Insurance; IFFCO-TOKIO General Insurance; Kotak Mahindra Prime; New India Assurance; Nippon Paint (India); Shimnit India; Yes Bank; and Zuno General Insurance; Bronze Partner: Akzo Nobel; AutoSherpa; ATS Elgi; Cholamandalam Investment & Finance Company; FTA HSRP; Mahindra Insurance Broker; Pine Labs; SBI General Insurance; State Bank of India; and Axalta Coating Systems.

I wish to extend my heartfelt thanks to all my friends in the Managing Committee, Executive Committee, and Governing Council for their continued support in mobilising registrations, securing partnership confirmations, planning program details, and ensuring the seamless execution of the event. I would also like to express my sincere gratitude to the Past Presidents of FADA for their continued guidance and encouragement. A special note of thanks goes to FADA Secretariat for working at the backbone and playing a crucial role in the flawless execution of the events.

During the month, FADA Secretariat was visited by Mr Pham Sanh Chou, CEO – VinFast Asia & met with Past President FADA -Mr Vinkesh Gulati; Executive Committee Member - Ms Garima Misra and CEO, FADA - Mr Saharsh Damani.

FADA Academy recently conducted a series of impactful initiatives aimed at empowering dealership professionals across the country. It hosted an exclusive webinar on the Vehicle Scrappage Policy, highlighting the emerging opportunities specifically for two-wheeler dealers. Additionally, the Academy successfully organized a knowledge session titled “Driving Compliance Excellence – ESI & PF for Dealerships,” led by the esteemed Mr. Anil Kaushik, a renowned management thinker and expert in employment law. The session drew active participation from 60 members representing dealerships nationwide. Further strengthening its commitment to workforce development, FADA Academy, in collaboration with ASDC and Hero MotoCorp, organized job fairs in Aurangabad (Maharashtra) and in Chaputa, Senduari, and Hajipur (Bihar). These events aimed to connect certified, job-ready candidates with promising opportunities in the dealership ecosystem.

Women in FADA (WiF), under the leadership of Chairperson Ms. Rashmi Kale, organized an engaging motivational session for WiF members participating in FADA events on September 9th and 10th at the FADA office. The session, titled “The Power of Presence: Shaping Leadership Through Communication & Confidence,” was conducted by Ms. Chitrakashi V. Vij, a respected Communication & Behavioral Trainer and Image Consultant. Attended by around eight WiF members, the session was well received and appreciated for its insightful and empowering content.

At the state level, FADA Chhattisgarh, under the leadership of Chairperson Mr. Vivek Garg, held a significant meeting with the Hon'ble Transport Minister of Chhattisgarh, Shri Kedar Kashyap, to discuss key issues affecting automobile dealers in the state. The delegation included Mr. Manish Raj Singhania, FADA Chairman – Academy & Research, Mr. Kailash Khemani (Director – 2W CG), Mr. Ravindra Bhasin, Shri Amar Parwani, Shri Anil Agrawal, and Shri Vivek Agrawal. The discussion focused on addressing critical challenges and seeking collaborative solutions to support the automotive retail ecosystem in Chhattisgarh.

FADA Delhi under Chairperson - Mr Shailender Luthra convened its chapter members' meeting at the FADA office to deliberate on prevailing industry challenges and to chart out actionable steps for moving forward.

FADA Gujarat, led by Regional Director Mr. Siddharth Jain, organized a seminar in Surat at the Gujarat Chamber of Commerce and Industry. During the event, he shared the views of Mr. Jatin Harjai, FADA's GST Consultant, on GST 2.0 and the withdrawal of compensation cess, while High Court advocate Mr. Hemant Desai provided legal insights. Mr. Jain also highlighted FADA's ongoing efforts on the cess issue and encouraged dealers to unite under the FADA umbrella for stronger representation.

As I conclude, I sincerely thank all members and partners for their continued support. FADA remains dedicated to protecting dealer interests, fostering collaboration, and driving growth. Together, we will overcome challenges and build a stronger, more resilient auto retail industry for a brighter future.

With Sincere Thanks,

CS Vigneshwar

President - FADA