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)

Hyderabad-headquartered BluJ Aerospace has introduced its Gen 2 prototype electric vertical take-off and landing (eVTOL) vehicle, marking the first commercial-grade assembly developed from its Vantis platform architecture.

The rollout follows four years of internal research and development at the company's 40,000 square foot manufacturing facility in Hyderabad.

The Gen 2 is a fully battery-powered vertical take-off and landing (VTOL) aircraft configured for freight and cargo logistics. It operates with a maximum take-off weight of 500 kilograms and carries an active payload capacity target exceeding 200 kilograms. Employing a lift-plus-cruise design, the model is currently undergoing flight tests to validate subsystem integration, payload distribution and mission metrics for commercial deployments.

The underlying Vantis architecture forms a unified engineering baseline for the airframe, electric propulsion systems, flight controls and autonomous navigation software. Subsystems validated on the initial platforms are transferred directly to future vehicle iterations to manage development costs and accelerate commercial timelines. The company holds a design patent on its eVTOL layout and has submitted utility patent filings for its carbon-fibre airframe and distributed powertrain configurations.

BluJ’s current commercial pipeline encompasses infrastructure transport, express cargo, energy networks, airport freight and defence logistics. The company has finalised a pilot project with a public sector undertaking (PSU) in the power sector and maintains technical partnerships with a defence PSU alongside domestic military supplier.

On the development of its hydrogen-electric powertrains, the firm has completed ground testing of its fuel-cell assembly, which incorporates an internally designed Type IV composite hydrogen storage tank. Long-range hydrogen-electric variants are scheduled for testing between 2027 and 2028. To support this propulsion rollout, BluJ is collaborating with Bharat Petroleum Corporation Limited and Cochin International Airport Limited to outline regional hydrogen refueling infrastructure.

Amar Sri Vatsavaya, Founder and CEO, BluJ Aerospace, said, “The next major shift in aviation is the move from single product programs to platform-based architectures. Just as the automotive industry builds multiple vehicles on a common platform, Advanced Air Mobility will need adaptable architectures that scale across missions, payloads, and customer use cases. That is the advantage VANTIS gives BluJ. Our platform-based approach lets us develop multiple AAM product classes efficiently and at scale."

Sateesh Andra, Managing Director, Endiya Partners, added, “India runs one of the largest logistics economies in the world, but it still moves on aircraft and infrastructure designed elsewhere. Aerial mobility is a rare category where Indian deep-tech can build globally relevant aerospace IP from the ground up, and that needs founders willing to bet years on getting the engineering right. BluJ Aerospace’s Gen 2 flight is proof that the hard work is paying off. From long-range cargo to the regional passenger mobility India needs next, they are building what comes after the runway.”

Naganand Doraswamy, Managing Partner, Ideaspring Capital, said, "Deep-tech categories that compound, from semiconductors to robotics and now aerospace, are won by teams that build platforms, not single products. India has had the engineering talent for decades, but very few teams have applied that platform discipline to aircraft. That is what BluJ has done with VANTIS, and Gen 2 is the first commercial output of an architecture we expect will shape how India shows up in global aerospace over the next decade.”

Vietnamese automotive company VinFast Auto has appointed Pham Nhat Quan Anh as Chairman of the Board of Directors, effective 23 May 2026. He succeeds Le Thi Thu Thuy, who steps down from the board to focus on her role as Vice Chairwoman of Vingroup, VinFast’s majority shareholder.

The management transition comes as the Vietnamese electric vehicle manufacturer expands its production and sales presence across international markets, including recent factory development and vehicle rollouts in Southeast Asia.

Prior to this appointment, Pham Nhat Quan Anh held the positions of Vice Chairman and Standing Deputy General Director at VinFast Trading and Production JSC.

Since joining the automotive firm in February 2019, his executive responsibilities have spanned vehicle development, manufacturing oversight and quality control, including tenures as Deputy General Director of Global Sales, Marketing & Aftersales and Director of the Planning, Program Coordination and Quality Inspection Division.

Pham Nhat Quan Anh, said, “I am honoured to assume the role of Chairman of the Board of VinFast. VinFast has built a strong foundation over the past several years, and we remain focused on executing the Company’s long-term strategic priorities, advancing innovation, and continuing to strengthen our global operations and customer experience. I look forward to working closely with the leadership team as VinFast enters its next stage of growth”.

Pham Nhat Quan Anh holds a Bachelor’s degree in business management from Singapore Management University. Between 2017 and 2019, he worked within the hospitality sector as Deputy General Director and Deputy Chief Operating Officer of Vinpearl Joint Stock Company, focusing on operational management and corporate strategic planning.

Chennai-headquartered two-wheeler and three-wheeler major TVS Motor Company has achieved the first position globally in the 'Durable Consumer Goods' category of the annual 'Best Stocks in the World' ranking.

The study was published by German business weekly WirtschaftsWoche and was based on the Boston Consulting Group (BCG) Value Creators analysis.

The evaluation analysed more than 2,000 listed companies across 35 industries worldwide. Over the 5-year period from 2021 to 2025, TVS Motor Company recorded an average annual total shareholder return of approximately 51 percent.

This placed the company ahead of category peers from Japan, China, the United States and India. According to the data, the performance was driven by revenue growth contributing 22 percentage points and market valuation contributing 18 percentage points, along with profit margin improvements and debt reduction.

Professor Sir Ralf Speth, Chief Mentor, TVS Motor Company, said, “This recognition by WirtschaftsWoche and BCG is the result of the consistent implementation of Chairman Sudarshan Venu’s clear strategic vision. His passion for the company, deep understanding of markets and customers, openness to new technology, and attentiveness to the workforce create a values-based environment in which creativity and performance can flourish. Equally exemplary is the strong commitment to social responsibility. With this mindset - the ‘TVS Way’ - and under outstanding corporate leadership, the TVS team wins numerous international awards year after year, including accolades for environmental stewardship and exceptional product quality. TVS is synonymous with quality and a strong commitment to the environment, rooted in the skill of its people and built on manufacturing excellence. In symbiosis with this commitment, the company continues to advance energy-efficient solutions and strengthen its leadership in electric mobility. Under TVS Motor Company’s ownership, Norton’s global resurgence is now clear. This storied and deeply revered brand is once again delivering a compelling combination of technology, design integrity and dynamism. I am confident TVS Motor Company is strongly positioned for the future - delivering sustainable growth, strengthening global competitiveness and creating long-term shareholder value - recognition goes to the whole TVS team for their hard work and commitment."

In FY2026, TVS Motor Co reported annual sales of 5.89 million units, representing a 24 percent increase YoY. International business grew 33 percent across more than 90 markets. Revenue increased 30 percent YoY to INR 472 billion, operating profit before tax rose 40 percent to INR 49.75 billion and the operating EBITDA margin reached 12.9 percent.

Eicher Motors, one of the leading manufacturers of two-wheelers and commercial vehicles, has announced its financial results for Q4 FY2026 and FY2026.

During Q4 FY2026, Royal Enfield sold 313,811 motorcycles, up 12 percent YoY, while VE Commercial Vehicles (VECV) reported sales of 33,976 units, as against 28,675 units a year ago.  The company reported INR 60.8 billion revenue, up 16 percent YoY, EBITDA of INR 15.14 billion, up 20 percent YoY and net profit of INR 15.20, up 12 percent YoY for Q4 FY2026.

For FY2026, Royal Enfield reported its highest-ever annual sales, surpassing 1.2 million units, up 22 percent YoY, which includes 1.10 million units in the domestic market, up 23 percent YoY.

The revenue came at INR 234 billion, up 24 percent YoY, EBITDA at INR 57.8 billion, up 23 percent YoY and profit after tax of INR 55.15 billion, up 17 percent YoY.

B. Govindarajan, Managing Director - Eicher Motors and CEO, Royal Enfield, said, “FY2026 has been an exceptional year for Eicher Motors and Royal Enfield, marked by strong growth, record volumes, and a continued focus on our global ambitions during our 125th anniversary. We achieved over one million motorcycle sales for the second consecutive year and recorded our best-ever festive season, with record volumes in both domestic and international markets. We also marked a major milestone in April ‘26 with our entry into the electric mobility space via the launch of the Flying Flea C6. International business remains a key priority as we steadily deepen our presence in markets like Brazil. This year, we also took the brand into new cultural spaces - ranging from gaming collaborations to marquee community rides - that strengthen our global identity. To power our next phase of growth, we have committed to significant investments, including the brownfield capacity expansion at Cheyyar with INR 9.58 billion and our strategic expansion plan at Tada in Andhra Pradesh, both aimed at building future-ready capacity to support our long-term projected growth.”

B Srinivas. Managing Director and Chief Executive Officer, VECV, said, “Crossing the milestone of 1,00,000 vehicles in a year is a significant achievement for VECV and reflects the trust our customers have placed in our products and solutions. This milestone also fulfills a key part of the original vision set at the inception of the Volvo–Eicher joint venture, underscoring the strength and long-term strategic direction of our partnership. During the year, VECV launched several innovative solutions in the rapidly evolving Indian CV Industry -including the Eicher Pro X Small Truck for city distribution, 12 m Eicher electric intercity coach, electric Tarmac Buses and the Volvo FM LNG Road Train specially designed for long haul logistics. As we move forward, we remain committed to driving the next phase of growth through innovation, sustainability, and deeper customer engagement.”