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)

GreenCell Mobility (GCM), the electric bus platform backed by Eversource Capital, has completed a USD 89 million mezzanine funding round. The investment was provided by the International Finance Corporation (IFC), British International Investment (BII) and Tata Capital. The capital is designated to support the expansion of GCM’s electric vehicle operations across India.

The company currently operates a fleet of more than 1,200 electric buses and 270 charging stations. This funding will facilitate the growth of the fleet to 3,700 units. The expansion includes buses secured through the National E-Bus Programme and the PM Seva E-Mobility initiative. These vehicles will serve routes in Delhi, Madhya Pradesh, Andhra Pradesh, Bihar and Puducherry.

The mezzanine financing structure is intended to catalyse private and institutional capital for the transport sector. By increasing the number of electric buses on intra-city and intercity corridors, GCM aims to address air quality and carbon emission targets. The project also focuses on establishing payment-security models and financing structures that can be replicated in urban transport markets.

GCM functions as an OEM-agnostic platform, allowing it to integrate various bus models into its network. The investment will also fund the development of charging infrastructure required to support the larger fleet, specifically targeting connectivity in tier-2 and tier-3 cities.

Dhanpal Jhaveri, Vice-Chairman of Everstone Group and CEO of Eversource Capital, said, "Through this funding round for GreenCell Mobility, we are deepening our partnership with IFC, BII and Tata Capital (leaders in sustainable investments). The transaction exemplifies the catalytic role that private, development and institutional capital can play in accelerating India’s clean transport revolution. GCM’s expanded operations will drive transformation efficient transportation to cities and commuters while delivering returns."

Devndra Chawla, Managing Director & CEO, GreenCell Mobility, said, "This fundraise marks a significant milestone in GreenCell Mobility’s journey to build electric mobility as a mainstream, scalable public transport solution for India. The participation of IFC, BII and Tata Capital reflects strong conviction in our platform, our operating model, and our ability to execute at scale. As we expand our fleet and charging infrastructure across states under programmes such as PM Seva E-Mobility, our focus remains on delivering reliable, cost-efficient and zero-emission transport for cities and intercity corridors."

Katherine Koh, Regional Industry Manager, IFC, added, “Electrifying buses is central to India’s urban transformation agenda, and our mezzanine investment in GreenCell will accelerate the rollout of sustainable public transport for thousands of people across India’s tier-2 and tier-3 cities. It will create jobs while catalyzing private capital through innovative financing and payment-security models.”

Shilpa Kumar, Managing Director and Head of India, BII, said, “Climate action is a key priority for BII in India, with electric mobility as a key pillar of our climate investment strategy. Electric buses are a critical lever for decarbonising public transport at scale. Our investment in GreenCell Mobility reflects our commitment to supporting proven platforms that accelerate clean mobility.”

Manish Chourasia, Chief Operating Officer, Tata Capital, noted, "Tata Capital is pleased to participate in this strategic investment that accelerates India’s transition to cleaner, more efficient transport. GCM’s innovative approach aligns with our vision for sustainable urban development and inclusive growth.”

ZEISS Industrial Quality Solutions recently hosted its landmark ZEISS Quality Innovation Worldwide forums in New Delhi and Pune. These events, integral to a global series originating from the flagship summit in Berlin, positioned India as a central architect in the evolving narrative of worldwide metrology. Focused squarely on ‘The Future of Metrology’, the gatherings engaged key manufacturing sectors – from automotive and electric mobility to medical technology and electronics – on overcoming modern precision and quality challenges.

A core insight emphasised metrology's transformative shift from merely assessing outcomes to proactively predicting performance. This evolution empowers manufacturers to accelerate innovation while adhering to rigorous quality standards. The forums established a pioneering national platform, merging strategic dialogue with exhibits of advanced technology. Attendees engaged with cutting-edge innovations across optical, tactile and X-ray measurement, explored connected digital ecosystems like ZEISS PiWeb and witnessed AI-driven and automated inspection solutions aligned with smart industry principles. Practical, hands-on demonstrations bridged these technologies with real-world production scenarios.

Notably, the India editions amplified the voice of local industry, with leading manufacturers detailing their own journeys in quality transformation. They shared experiences in building resilient quality cultures, pioneering process innovation and implementing best practices in complex environments. This highlighted a collaborative model for progress, where the future of Indian metrology is being jointly shaped by global technology leaders and domestic industrial innovation.

By selecting two of India’s premier industrial hubs, ZEISS reinforced its deep commitment to the nation's manufacturing ascent. The initiative frames India not merely as a growth market but as a vital contributor to global manufacturing excellence. Ultimately, the events united industry leaders and quality champions to collectively define how predictive intelligence and precision will forge the next decade of manufacturing.

Aveen Padmaprabha, Head of Industrial Quality Solutions, ZEISS India, said, “As manufacturing continues to transform, the expectations from metrology are expanding rapidly – from speed and accuracy to data-driven decision-making. ZEISS Quality Innovation Worldwide in India, which witnessed a humbling participation of 350+ individuals from the manufacturing fraternity, demonstrated how advanced metrology solutions can empower the industry to achieve higher productivity and quality consistency. Our focus remains on enabling our customers with future-ready technologies and deep application expertise.”

BASF Coatings has released its latest Color Report for Automotive OEM Coatings, revealing a shift in global vehicle colour preferences for 2025. The data indicates that green has become the fastest-growing chromatic colour, while gray has increased its share within the achromatic category.

The report finds that while white remains the dominant choice in India, there is a growing shift towards individual expression. Globally, the report identifies green as the fastest-growing chromatic colour and gray as a primary riser in the achromatic category.

According to the report, Indian consumers continue to favour white for its traditional appeal and resale value, yet nature-inspired aesthetics are gaining traction. Green now ranks among the top three chromatic colours globally, trailing only blue and red. While blue dropped by one percentage point and red declined to 3 percent of the total market, green continued a steady rise. Gray recorded an increase of two percentage points worldwide, whereas white saw a slight decline in other markets despite its stronghold in India. Solid finishes have also decreased globally, now representing 18 percent of the total market.

Florina Trost, Head of Design EMEA, BASF Coatings, said, “The green trend was already making waves in EMEA a few years ago. Different shades have been featured in our Automotive Color Trends collection, hinting at the huge variety of shades we see fitting to this movement today.”

The Americas showed an increase in chromatic paints by nearly two percentage points. While red and blue remain historically significant in this region, colours such as green, beige, brown and violet are gaining momentum.

Mark Gutjahr, Global Head of Automotive Color Design, BASF Coatings, said, “In 2021, brown and beige have been key colours of our trend collection. The sales now validate these early predictions and illustrate, how long-term trends continue to shape the market.”

In the Asia Pacific region, gray is trending upwards as white declines. Green is expanding its presence with a range extending from light tones to natural shades.

Chiharu Matsuhara, Head of Automotive Color Design for Asia Pacific, BAF Coatings, said, “In our past trend forecast, we have introduced a solid-like gray with subtle colour interference and highlighted an urban nuance green for adaptability. Today, gray strengthens while green expands across the region.”

The Society of Indian Automobile Manufacturers (SIAM), in partnership with the Delhi Traffic Police and Maruti Suzuki India, has completed road safety refresher workshops in New Delhi. The sessions were organised as part of National Road Safety Month and targeted commercial vehicle and three-wheeler drivers.

The initiative, part of the ‘सुरक्षित सफर (Safe Journey)’ programme, involved over 200 participants. Workshops took place on 12 January 2026 at the Institute of Driving Training & Research (IDTR) in Loni/Burari and on 15 January 2026 at IDTR, Sarai Kale Khan.

The workshops provided health check-ups for drivers, including blood pressure, blood sugar, and eye examinations. Eyewear was distributed to drivers through support from the Eicher Group Foundation and Dr. Shroff's Charity Eye Hospital.

Following the medical checks, faculty from IDTR and the Delhi Traffic Police delivered training on traffic regulations, defensive driving, and on-road behaviour. The curriculum focused on safety messages through participant engagement and learning.

Prashant K Banerjee, Executive Director, SIAM, said, “Road safety is a shared responsibility, and sustained awareness among drivers is critical to reducing road accidents. Through our ‘सुरक्षित सफर" initiative, SIAM, along with its member companies and enforcement authorities, remains committed to promoting safer driving practices and strengthening road safety culture across the country.”

Vinay Dhingra, Vice-President, SAFE, said, “Drivers are the lifeline of our nation. It is through their hard work and dedication that we are able to support and strengthen our country. Consistent training and awareness programmes are crucial in building a strong culture of road safety. These initiatives equip drivers with a better understanding of traffic regulations, encourage safer driving habits, and help create safer roads for everyone.”

Officials from the Delhi Traffic Police and representatives from Honda Motorcycle & Scooters India also attended the sessions to interact with the drivers.