Championing Dealer Interests Through Dialogue, Action, and Knowledge

Dear Friends,

As we celebrate the festival of lights, optimism shines across the auto retail industry. A strong monsoon, good harvest, and stable policies have boosted confidence and buying power in both rural and urban India, setting the stage for a vibrant festive season and renewed growth for dealerships nationwide.

In this spirit of renewal and opportunity, FADA continues to champion the interests of our fraternity through sustained advocacy, strategic collaboration, and focused knowledge-building — ensuring that our dealer community remains resilient, future-ready, and united in purpose.

With this spirit of dedication, FADA State Chapters host “Vyapar” — a regional extension of FADA’s national events, primarily held in New Delhi. These gatherings bring together automobile dealers, OEMs, finance and insurance companies, bureaucrats, and other key stakeholders to exchange ideas, share best practices, and address critical industry issues under one roof - thereby strengthening FADA from the base to the top of the pyramid.

FADA Tamil Nadu is setting the ball rolling and is proud to host the 19th edition of Vyapar, the 2nd in the state. Vyapar Tamil Nadu, themed “From India’s Detroit to Its Digital Destiny,” will be held on 5th November 2025 in Chennai. The theme highlights Tamil Nadu’s remarkable journey — from being a manufacturing powerhouse of India’s automotive sector to emerging as a hub of digital innovation and technology-led growth.

This will be followed by Vyapar Kerala, tentatively scheduled for the end of November 2025; Vyapar Gujarat in the 3rd week of December 2025; Vyapar Assam in the 2nd week of January 2026; and Vyapar Punjab towards mid-February 2026.

These events also highlight the collective strength of the dealer community to the bureaucracy, OEMs, and other key players in the automotive ecosystem. I therefore, request all my dealer friends to register in large numbers for your state’s Vyapar — your participation is vital to showcase our unity and make each event a resounding success.

Friends, as in the past, FADA will be organizing a delegation to attend the NADA Convention 2026 in Las Vegas, scheduled from February 3rd to 6th, 2026. Attending the NADA Convention provides a unique opportunity to explore the future of automotive retail, including the latest dealership strategies, emerging industry trends, legal and regulatory updates, and to network with members of international dealer associations.

Members with a valid US visa who wish to join the delegation must register using the provided link. The last date for FADA to complete block registration at a discounted rate is December 3, 2025. Delegates are requested to plan their arrival in Las Vegas by the evening of February 1, 2026, as dealership visits are planned for February 2, 2026.

At the national level, I am pleased to share that the past few weeks have seen intense engagement and constructive dialogue with key stakeholders across the automotive ecosystem.

Highlighting the urgent need for relief due to the Nil-Rating of Compensation Cess and the simultaneous GST rate increase, FADA has submitted multiple representations to Hon’ble Prime Minister Shri Narendra Modi, Hon’ble Finance Minister Smt Nirmala Sitharaman, Revenue Secretary Mr Arvind Shrivastava, Chairman CBIC, and Hon’ble Union Minister of Commerce & Industry, Mr Piyush Goyal; Hon’ble Union Minister of Heavy Industries, Mr H D Kumaraswamy and Hon’ble Union Minister of Road, Transport & Highways, Mr Nitin Gadkari.
Additionally, FADA senior officials held a meeting with SIAM’s Tax Committee on the Compensation Cess issue to coordinate joint advocacy efforts. FADA also submitted individual representations to OEMs, urging them to take immediate action on the matter.

Further, I, along with CEO FADA, Mr. Saharsh Damani, had the privilege of meeting Hon’ble Minister of Heavy Industries, Mr H D Kumaraswamy, to discuss the challenges faced by the auto retail sector and explore the way forward. Further, Vice President FADA, Mr Sai Giridhar, FADA GST Expert, Mr Jatin Harjai, and Mr Damani met Shri Ankit Jalan, Additional Private Secretary to the Hon’ble Finance Minister, to address the pressing Compensation Cess issue.

Continuing these efforts, I, along with Mr Sai Giridhar, Mr Saharsh Damani, and Mr Shailender Luthra, Chairperson FADA Delhi, had a constructive meeting with Hon’ble Prime Minister’s Advisor, Shri Tarun Kapoor, at the PMO, South Block, New Delhi.

In parallel, Mr. Shailender Luthra and Mr Damani also met Hon’ble Deputy Chief Minister of Bihar & Chairman of GoM–GST Council, Shri Samrat Choudhary, to discuss the Compensation Cess matter.

Carrying this forward, FADA West Bengal, represented by FADA Governing Council Member, Mr Amit Manaktala and Mr Anil Bagaria, met Hon’ble Finance Minister Ms. Nirmala Sitharaman in Kolkata and presented a representation regarding the ongoing Cess concerns.

While we await a favourable response from the government on this matter, FADA has issued an advisory to members regarding Compensation Cess credit under GST 2.0, requesting them to:

1. Maintain detailed reconciliations of Cess credit accumulated and the corresponding inward supplies on which such credit was availed.
2. Do not reverse or write off the balance lying in the Cess ECrL at this stage.
3. Avoid any voluntary reversals in GSTR-3B or manual adjustments in books until further communication is issued by the authorities or by FADA.
4. Retain complete documentation, including purchase invoices, ECrL statements, and reconciliations, to substantiate the credit position.

Friends, we will use all our resources to settle this amicable. In case, if advocacy fails and we are left with no other option, we will not hesitate in knocking the doors of Hon’ble Supreme Court.

On the learning and development front, FADA Academy headed by Mr Manish Raj Singhania continues to empower members through insightful and practical sessions. Recently, the Academy conducted a knowledge series webinar titled “From Risk to Readiness: Labour Compliance in Auto Dealerships” by Mr Anil Kaushik, President, Indian HR Forum. The session witnessed participation from 75 dealerships across the country, making it highly interactive and impactful. Discussions provided practical guidance on compliance, contractor management, and dealership responsibilities.

Looking ahead, FADA Academy will be organizing an exclusive online session on “Forecasting for Auto Dealers” with Mr Hemal Thakkar, Senior Practice Leader & Director, CRISIL India, scheduled for the last week of October 2025. I encourage all dealer members to register and participate, leveraging these sessions to gain valuable insights and strengthen their entrepreneurial journey.

Mrs Rashmi Kale, Chairperson, Women in FADA and Mr Manish Raj Singhania, Chairperson FADA Academy & Research with Ms Tawanpreet Kaur Bhasin, WiF Director, FADA Chhattisgarh, & RADA Senior officials, successfully organized Impact HR 1.0 in Raipur – a step forward in people-centric initiatives.

Our advocacy efforts are being reinforced by state chapters. Mr Sanjay Aggarwal, Chairperson, FADA Jammu, along with Regional Directors Mr Manik Batra, Mr Rohit Gandotra, Mr Kanav Aggarwal and Senior Member Mr Sumit Malhotra, met Mr Chandrasekhar Azad, Regional Director, RBI Jammu, Kashmir & Ladakh, to discuss key industry concerns.

FADA Maharashtra led by Chairperson - Mr Sachin Mahajan, and Mr Amar Sheth, Secretary, FADA met Mr Pratap Sarnaik, Hon’ble Transport Minister, Government of Maharashtra to discuss various issues concerning CMVR & MBO menace. Following this meeting, the Hon’ble Transport Commissioner of Maharashtra has been directed to issue warnings to OEMs engaging in business practices with MBOs, and appropriate action be taken in cases of non-compliance.

FADA Uttar Pradesh led by Chairperson Mr Pratik Jain represented for the extension of the state’s EV Policy beyond October 13, 2025. Additionally, FADA members from the state - Mr Amit Ghai and Mr Rajnish Agarwal met Hon’ble Principal Secretary, Government of Uttar Pradesh, Mr Sanjay Prasad, and submitted a formal representation.

I would like to commend all Governing Council Members, Regional Directors, and Members for their relentless efforts and steadfast dedication in strengthening the voice of the dealer community. It is through our united and proactive approach that FADA continues to be recognized as a credible and respected authority in policy advocacy and industry collaboration.

Warm wishes for a radiant Deepawali and a season filled with success, happiness, and spirited sales!

Yours sincerely,

CS Vigneshwar
President-FADA