JSW MG Motor, HMSI and Ashok Leyland Top FADA’s Dealer Satisfaction Study 2024

Q: Congratulations on assuming the charge of the President of FADA. What are your immediate priorities?

Gulati: Thank you!

The past eight to nine months have been a challenging time for the entire humanity and every business sector. It has been a difficult phase for the dealer fraternity too. We have worked in very adverse conditions with zero business and zero earnings, along with a high operational cost. Post reopening of dealerships, proper decontamination and sanitisation of the entire premises, vehicles, employees, etc., have added cost to dealers who were already seeing slow sales for over 18 months in the pre-COVID era.

We are a resilient lot, and COVID has taught us to make tough decisions to ensure that our business and community survive, while offering the best of our services to customers. During my tenure, I will rigorously take up all our dealer issues at every possible platform and offer the association the finest representation, better visibility and hearing, offering a competitive business and operational environment to our fraternity.

The automobile industry has been an important driving force in India’s economic growth. Reviving the automobile industry is vital to regain lost momentum in the economy. The Government and the sector need to work together to strengthen the industry, wherein the dealer fraternity is an important element in the system.

One of the key issues which we will be working upon is improving dealer margins. Over the years, profitability has dwindled due to high costs and low operating margins.

Auto dealerships in India are operating at an average net profit level of 0.5 percent to one percent of the total turnover, which is much lower than the global standard, as internationally, dealer margins range from seven percent to 12 percent on selling price of the vehicle.

We have already written to SIAM about this, and we will further strongly urge all our OEMs to make the dealer business more sustainable and shockproof.

While we were trying to bring auto dealers under the ambit of MSME, we will up the ante further and make sure that dealers are treated at par with other businesses who are reaping the benefits of being an MSME.

Further, as a category, 2-wheelers comprise 75 percent of the sales in India, and I am working to make an exclusive 2-wheeler vertical at FADA.

This will specifically work on the nuances of 2-wheeler dealership such as sub-dealers, brokers etc. The dynamics of 2-wheeler dealers are very different from 4-wheeler dealers and hence need special attention. As they say, fortune is at the bottom of the pyramid!

FADA will continue to take up issues concerning regulatory and legislative burdens, representing the dealer fraternity across every possible platform. We will continue to reach out to our principals and build strong relationships moving ahead.

Q: FADA has been working on increasing dealer margins for ages but ends up in a stalemate. Where is the issue? How are you going to tackle this?

Gulati: Yes, this is one issue which we have been working for many years, but efforts were not made concretely until sometimes back. It’s during the 2nd Auto Retail Conclave, when we brought up the issue to our executive committee, had a panel discussion exclusively on dealer margins. There onwards, we started building momentum with continues efforts in this direction, and a few months back we also did a study on dealer margin offered by individual OEM to their respective dealers across the product lineup. This was an eye-opener for the entire fraternity as nothing of this sort was brought out in the past; this showcased that Indian dealer’s community were working on a minimal margin which was way below the global standards.

I am happy to mention that post this study, few OEMs have reviewed their dealer margin, few are in discussion with their management and respective dealer council. However, the increased margins are still not at a level which we have been asking for, but a movement has started, which is quite encouraging for the entire community.

Dealership business has a significant daily expense which is addressed by the dealer from his marginal profit. A better profit margin will help the dealer to re-invest a subsequent amount of his earning for the development and expansion of his business, which in return will add up a new business to OEMs.

We will continue to do this kind of studies in times to come and also keep negotiating with our principals as they also understand that their first customers are not in good shape and they require higher margins to sustain their business.

Q: What according to you are the skill gaps persist in the automotive industry still and how FADA is addressing this?

Gulati: Skill gap is a subject which is never-ending as technology keep changing, and we need to make a continuous effort to upgrade our manpower. In recent time, the automobile industry has gone a long way in terms of technology upgrade.

To address this change, all the three auto Associations (Automotive Component Manufacturers Association of India (ACMA), Federation of Indian Automobile Dealer Associations (FADA) and Society of Indian Automobile Manufacturers (SIAM)) have come together in tune with National Skill Development Council and created ASDC (Automotive Skill Development Council) which looks to reduce the gap in between yesterday’s skills and today’s requirement. FADA has been making a continues effort to keep our dealership manpower at par with the newer technologies.

At FADA, we are starting up with a FADA Academy which will hold courses for Dealer Principals and their Chief Experience Officers to train them in running an efficient dealership business from all aspects.

Q: With more than 50 percent of the work in purchasing any vehicle done online, where do you see the role of dealers in the future? Do you see the new trend fuelling unemployment further?

Gulati: Getting prospective customers through the online route is a growing trend. Dealers and manufacturers have been active on online platforms for quite a long time now. The pandemic is the reason for this change in consumer behaviour. Earlier, customers had to visit dealerships several times before the final buy. e.g. all loan formalities, document verification, vehicle test drive etc. These are now offered online or at the doorstep. But for the final sale, customers have to visit the dealerships to test the vehicle and take delivery.

Today every customer is well informed. The vehicle-buying experience involves several steps, right from an online search, specific automobile website visits, going through views, reviews, product comparison, collecting information from peers, social media and users and evaluating a brand, product and its services.

Only after doing all these research consumers make their decision. It is not just a transaction for the customer, but more about in getting into a relationship of trust. That is where the dealerships come into play. Every customer wants to experience the vehicle physically before closing the deal. More importantly, they want to meet up face-to-face with the dealer and satisfy themselves before committing to this high-ticket purchase.

I don’t think there is any change in the playbook, but digital has now moved from “Nice to have” to Necessity. In this COVID era, with total lockdown, digital marketing has played a significant role in boosting sales and smooth execution. Every dealership has initiated digital training of its manpower, equipping them to conduct sales coordination through a digital platform. This initiative has further enhanced its sales and service reach. Dealerships must be the most frugal and flexible link across the automobile network.

Dealers and dealerships have always been the face of the brand and will continue to be so. I don’t see any immediate challenge or threat to the dealership business. However, with companies being more aggressive and active on online platforms, this will add on to dealership engagement with the brand and the customers, helping them further to enhance their sales and service reach and experience.

Q: What are the challenges you face with emerging technology trends like vehicle electrification?

Gulati: I don’t see vehicle electrification as a challenge for the dealer fraternity. The dealer community has been one of the most adaptable segments of the automobile ecosystem. We have always strived to keep ourselves at par with the manufacturers, and it’s business requirement, product and services utility. The dealer business is one business which significantly depends on its skilled workforce across the offerings such as sales, aftersales, engineering, etc. With every new product or technology, the dealer in association with its OEM partner makes certain that it initiates rigorous training for its employees so that it can offer the best service to its customers on behalf of the brand.

As far as vehicle electrification is concerned, India is still at a very initial level as electric PVs still have less than 0.25 percent market share. The EV segment requires immense Government support in terms of infrastructure, subsidy, allowance, recognition, etc., to get the segment to grow. I don’t want to comment on the technicalities of the segment and its products and services. Instead, on behalf of the entire dealer fraternity, I would like to assure that as a community we are committed to offering all necessary support and service to the Government for its vision about the EV industry.

Q: Episodes like FIAT & Peugeot (decades ago) and GM & MAN Trucks (in the recent past) etc., exiting the Indian market continues, leading the dealerships to lurch. What kind of safeguard mechanisms can we have to support the dealer community?

Gulati: Setting up a global brand dealership in India is a massive cost which varies from brands to segment, size of the dealership, region, location, etc. On an average setting up a premium 2-wheeler brand dealership cost somewhere around INR8-10 crore whereas setting up a premium 4-wheeler brand requires close to INR 20 - 30 crore. It is not just the setting up of a dealership which is a cost, the operation of a dealership is also a huge which involves day to day operational cost, vehicle stocking, employee salary etc. The dealer bears all this. As you know, the dealership business operates on a very minimal profit margin; any such activity by any brand ends up leading to capital loss along with loss of jobs in the sector. And now the pandemic poses another challenge for the dealer fraternity.

For example, the recent announcement by Harley-Davidson to discontinue its manufacturing and sales operations in India has left its Indian dealers stranded. This will result in the closure of 35 Harley-Davidson dealerships, with an approximate capital loss of INR 110-130 crores, besides also leading to a job loss of around 1,800-2,000 people at dealerships.

This is the fourth instance of automobile companies exiting India in the last three years (since 2017). Earlier, General Motors, MAN Truck and UM Lohia had quit their Indian operations, leaving their dealers in a similar fix. Due to FADA’s strong intervention and the Indian Government’s full-fledged support, General Motors and MAN Trucks had partially compensated their channel partners, but the UML matter remains unresolved till date.

Had there been a Franchise Protection Act in India, brands like these would not have abruptly closed their operations, leaving their channel partners and customers in the lurch.

We are already working on a draft with our legal team and have initiated communication with other retail associations to bring the Franchise law in India, which will support the dealer fraternity in the dire situation of an exit or termination.

We would also request the Government to initiate the law on priority as this law will help level the playing field for large international and domestic automakers and dealers and also help in regulating over-dealerisation.

Q: What kind of support/guidance FADA has given to its members to tide over the current situation triggered by the pandemic?

Gulati: These are unprecedented times. Everybody is making the best efforts to emerge from it in their own way. The auto dealership is one such business which was deeply impacted by COVID-19. The auto dealership is a very marginal profit business, and we do not have large funds like car and component manufacturers have, which makes it more difficult for us to emerge from this difficult time. The industry was already struggling with a 15 to 16-month slowdown, and the lockdown has pushed the entire industry further back.

FADA has provided all possible and necessary help to its dealer members. At the time of the lockdown, FADA wrote a letter to Prime Minister Narendra Modi to apprise him about the dealers’ issues and suggesting dealership survival and demand revival initiatives. Apart from this, FADA wrote a letter to SIAM making them aware of the situation of the dealers, requesting them to review the dealer margin and extend their support so that dealer can survive these difficult times. FADA quite actively worked to protect dealers from the loss on remaining stocks of BS-IV vehicles from the ban on the sale. The association petitioned the Supreme Court to extend the dateline for sale of these vehicles. At the same time, while securing the future of dealers, FADA demanded that car makers increase the dealer margin to five percent PBT and reduce the infrastructure cost by 25 percent.

FADA conducted online training for its dealer brothers, training them to prepare for maximum work with limited resources. (MT)

Bentley Unveils Two Poppy Cars For Remembrance Day Tribute

Bentley Unveils Two Poppy Cars For Remembrance Day Tribute

Bentley Motors has revealed two specially commissioned vehicles, a Bentayga Extended Wheelbase Artenara and a Supersports, to commemorate Remembrance Day in the United Kingdom. Known among colleagues as ‘our Poppy Cars’, the vehicles have become a potent symbol of remembrance throughout the organisation, playing a central role in commemorative activities that included an onsite service in Crewe, participation in Mission Motorsport’s Race of Remembrance at the Anglesey circuit and a return to Crewe where colleagues gathered.

The 2026 Remembrance cars were created by Bentley’s design team alongside the colleague-led BeReady network, drawing inspiration from John McCrae’s iconic poem In Flanders Fields. Rather than a simple reflection on loss, the poem is treated as a message from the fallen to the living, reminding future generations of the sacrifices made in defence of freedom and the responsibility to carry that legacy forward.

The bespoke exterior artwork explores peace amidst destruction, reflection from the fallen and a challenge to the living, using poppies and symbolic imagery to convey both the tragedy of loss and the resilience of hope. Poppies blooming across a battlefield and larks soaring overhead symbolise life enduring through adversity, while the central artwork honours those who made the ultimate sacrifice, remembering them not as distant heroes but as ordinary people who loved and were loved. The design traces a journey from resilience and hope to remembrance and responsibility, concluding with a call for future generations to remember the fallen, uphold the values they defended and carry their legacy forward.

Beyond this project, colleagues from Bentley’s manufacturing team crocheted handmade poppies to raise funds for the Royal British Legion. The initiative holds particular meaning for the BeReady network, one of five Diversity, Equity, Inclusion and Belonging networks providing a supportive space for veterans, acting reservists and their families, and serves as an annual tribute to the 17 colleagues who lost their lives building the Merlin Aero Engine when a bomb fell over Crewe 86 years ago.   

Robin Page, Director of Design at Bentley Motors, said, “Design is often judged by what it looks like, but its greatest value lies in how it makes us feel. These cars were created to inspire reflection, serving as a visible reminder that remembrance is not confined to a single day, but is a legacy that must be carried forward and shared by each generation.”

Chris Cole, Bentley’s Product Line Director, said, “The Remembrance vehicles demonstrate how craftsmanship can be used to tell stories that matter. Every detail has been thoughtfully created to honour those who served, creating a lasting symbol of remembrance, respect and appreciation. Unveiled in the same year that Bentley was awarded Gold Employer Recognition Scheme (ERS) status, the highest recognition available to employers supporting the Armed Forces community, the vehicles underscore the company's enduring commitment to veterans, reservists, serving personnel and their families.”

Auto Wholesales Clock Double-Digit Growth Across Segment In October 2026

SIAM - October 2026

The Indian automotive industry witnessed one of its strongest wholesale monthly performances in October 2026, with a total of 3.2 million vehicles sold across categories, which marks a 16 percent YoY growth, as compared to 2.76 million units sold last year.

The passenger vehicle segment crossed the 500,000-unit mark, witnessing its strongest performance for October to date with a total of 519,060 units sold, as compared to 461,614 units sold last year.

Three-wheeler sales at 103,349 units saw a 26 percent YoY jump, as compared to 82,190 units sold a year ago.

The two-wheeler industry saw a total of 2.57 million units sold, with scooter sales witnessing a robust 32 percent YoY growth at 1.09 million units, as compared to 833,621 units sold a year ago. Motorcycle sales grew by 7 percent YoY to 1.42 million units, as compared to 1.33 million units sold last year.

Rajesh Menon, Director General, Society of Indian Automobile Manufacturers (SIAM), said, “The Indian automobile industry continues to witness healthy demand momentum. In the two-wheeler segment, demand continues to be supported by improved credit availability and replacement demand, across both rural and urban markets. For three-wheelers, last-mile mobility requirements and rapid electrification remain strong structural drivers. Overall, the demand outlook remains positive.”

BendPak Pays Tribute To US Armed Forces With Valor C10 Debut At 2026 SEMA Show

BendPak Pays Tribute To US Armed Forces With Valor C10 Debut At 2026 SEMA Show

BendPak Inc. unveiled the Valor C10, its first custom-built vehicle, at the 2026 SEMA Show. The handcrafted 1970 Chevrolet C10 pickup honours the sacrifice, courage and commitment of the US Armed Forces. Its debut coincided with Veterans Day, lending the salute added poignancy for the company and its staff.

The truck fuses contemporary performance with enduring design, reflecting the American strength, ingenuity and resilience shared by BendPak and the military. Nostalgia Hot Rods, under Dustin Hacker's direction, handled the build, starting with a vintage C10 and retaining little beyond a heavily modified cab. The body-dropped pickup keeps over 4.5 inches of usable ground clearance despite its slammed stance, thanks to Hacker's chassis work. Metallic blue paint with red accents – a body stripe, brake callipers and engine – echoes the US flag, blue for vigilance, perseverance and justice, red for hardiness, sacrifice and the valour behind the truck's name.

BendPak's creative team designed custom Valor C10 badges for both doors, and the cabin pairs a classic bench seat in two-tone gray Alcantara with blue stitching against bespoke door panels and headliner. Power comes from a BTR Gen V Stage 2 supercharged camshaft, a custom 3.5-inch aluminium driveshaft, MagnaFlow 3-inch mufflers and a Holley Terminator X Max engine management system. A Gearstar GM 6L80E six-speed automatic, a custom Eddie Motorsports serpentine system, a Speedtech Extreme G chassis and QA1 four-way adjustable coilovers with cantilever rear suspension complete the mechanical package, alongside Forgeline custom wheels, JL Audio C7 components, a Kenwood 6.8-inch head unit, a PCS electronic gear shift module with wireless paddle shifter, Dapper Lighting custom headlights and taillights in billet housings,and Nu-Relics power windows.

Military service runs deep at BendPak. Founder Don Henthorn, a US Army veteran, started the company in 1965. President and CEO Jeff Kritzer served three years on active duty as a US Air Force C-130 loadmaster before joining the Air National Guard, preserving his flight status and loadmaster duties while launching his BendPak career – a taxing dual role he upheld for three years. He is the son of a senior master sergeant and fellow loadmaster devoted to military service, and his son Devin served with distinction in the US Army, including deployments to the Gulf region and Bangladesh.

Kritzer said, “We call this build the Valor C10 – it was created to honour the brave men and women who have served and continue to serve in our armed forces, especially those who gave their lives in defence of our nation. BendPak proudly supports the military community. This serves as our way of saying thank you and reminding everyone that freedom isn’t free.”

Sean Price, Director of Product Development, BendPak, said, “We’ve worked with Dustin for several years, supplying his shops with BendPak lifts and equipment, as well as showcasing many of his amazing builds in our SEMA Show booths. We knew he had the passion and craftsmanship to bring our vision for the Valor C10 to life.”

Hacker said, “Most of the sheet metal is custom-fabricated, including the roof, hood, drip rails, floors, bumpers, engine bay and bed. Under the hood, there’s a 376-cubic-inch V8 with a 2.9-litre Whipple supercharger. This thing will make 750 horsepower and drive like a dream.”

ContiTech Invests In Pune Surface Solutions Site With Colour Lab And Prototype Facilities

ContiTech - Pune

ContiTech is expanding its research and development capabilities at its Surface Solutions facility in Pune through investments in a dedicated Colour Lab and prototype development infrastructure, alongside the addition of four roles to its local engineering team. The company has also appointed Alok Pandey as Head of Plant Management Pune to oversee site operations.

The Colour Lab will handle colour development, colour matching, appearance evaluation and material testing for vehicle interiors. While primarily serving automotive manufacturers in India, the facility will also support development projects across the Asia-Pacific, Europe, Middle East, and Africa regions. Coupled with prototype testing equipment, the site will enable validation of surface materials for passenger cars and two-wheelers.

Alexander Scholz, Head of Business India, Surface Solutions at ContiTech, said, “India is a key growth market for our business and an important pillar of our long-term development strategy. As automotive manufacturers increasingly seek localised development support, faster response times and closer technical collaboration, these enhanced local capabilities will help us better support our customers' evolving needs. This investment reinforces our ‘In India, for India’ approach and reflects our confidence in the continued growth potential of the Indian automotive industry.”

Burak Uzel, Head of Design, Surface Solutions at ContiTech, said, “Automotive interiors have become a key differentiator for vehicle brands. Customers increasingly expect premium, comfortable and individualized interior experiences, while OEMs seek innovative and sustainable material solutions. This investment will strengthen our ability to develop and validate colour concepts locally, enabling closer collaboration with customers and supporting the next generation of interior design and material solutions for the Indian market.”

Jan-Philipp Behrndt, Head of Operations Automotive Plants, Surface Solutions at ContiTech, said, “The expertise and dedication of our local teams are key to our success. With the planned expansion of our R&D organization, enhanced technical capabilities and strong local leadership, Pune will continue to grow as an important contributor to our global innovation network. I am confident that the team's expertise and commitment will support our future growth and create additional value for customers.”