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)

European tier 1 supplier Marelli has confirmed the appointment of Laurent Favre as Chief Executive Officer with immediate effect, succeeding Frederick ‘Fritz’ Henderson, who concludes his tenure as Interim Chief Executive Officer.

Favre takes over leadership as the company prepares to complete its Chapter 11 restructuring process.

Separately, the Ad Hoc Group of Lenders to Marelli announced plans to appoint Bram Schot as Chair of the Board of Marelli upon emergence from Chapter 11. Previously Chief Executive Officer of Audi, he has held senior leadership roles at Mercedes-Benz, Volkswagen Group and holds advisory and board roles across Shell, Richemont, Cognizant and Signify.

On the other hand, Favre brings over two decades of automotive industry experience, having previously served in executive positions at ThyssenKrupp, ZF, Benteler and as CEO of Plastic Omnium (later renamed OPmobility) from 2020 to 2025.

Dinesh Paliwal, Executive Chairman, Marelli, said, "Fritz stepped into the role at a demanding moment and has led Marelli with judgement, clarity and commitment. On behalf of the Board, we thank him for everything he has done for the company, its customers and its people. Laurent brings deep knowledge of the global automotive industry and a strong record of leading complex international businesses. He understands the operational discipline needed to deliver for customers and the opportunities ahead for Marelli’s products and technologies.”

Laurent Favre said, "I am honoured to lead Marelli at this pivotal point in its history. I want to thank Fritz for his leadership and for the progress he and the Marelli team have made during a challenging period. Our immediate priority is to complete the work required for a successful emergence from Chapter 11. Emergence is a critical milestone, but the turnaround must continue beyond it. We will focus on restoring Marelli’s financial strength, improving performance across the business and strengthening customer confidence through consistent delivery."

"Beyond emergence, our ambition is to build a financially stronger, more competitive Marelli, combining operational excellence with focused innovation and profitable growth. We have talented people, strong technologies and longstanding customer relationships. I look forward to working with colleagues across Marelli to turn those strengths into lasting results and build a business our people are proud to be part of," added Favre.

Fritz Henderson said, "It has been a privilege to lead Marelli during this important period. I am proud of the progress our colleagues have made and grateful for their commitment to the business and its customers. Laurent brings extensive automotive experience and a clear understanding of what it takes to succeed in this industry. I wish him and the entire Marelli team every success as they take the company forward."

Bram Schot said, "Marelli has the talent, technology and customer relationships to succeed. I look forward to supporting Laurent and the team when I will take up the role as Chair following emergence from Chapter 11. Our long-term focus is clear: deliver on our commitments, strengthen customer partnerships and build a stronger, more competitive and sustainable Marelli."

Toyota Motor Corporation (TMC) has announced a major organisational restructuring, including the creation of a dedicated India & Middle East Region, as part of its strategy to strengthen regional management and accelerate its transformation into a mobility company. The changes will take effect from 1 January 2027.

Under the new structure, Toyota will split its existing India, Middle East, East Asia & Oceania Region into two separate entities – the India & Middle East Region and the East Asia & Oceania Region. The move is aimed at enabling closer engagement with individual markets, faster decision-making and business strategies better aligned with regional growth opportunities.

Masakazu Yoshimura will continue to lead the India & Middle East Region as its Chief Executive Officer, having previously headed the combined regional operations. The newly established region will focus on strengthening its business foundation for future growth, including the launch of a new plant in India and improved coordination of businesses and functions across the region.

The restructuring reflects Toyota's emphasis on regional autonomy, with market leaders expected to make faster decisions based on local customer requirements, operating conditions and business challenges. The company said the approach would strengthen its competitiveness while advancing its transition into a mobility company.

Takanori Azuma, currently associated with Toyota's accounting and regional operations, will head the newly created East Asia & Oceania Region as CEO. The new regional structure will allow both entities to focus more closely on their respective markets and manufacturing and sales operations.

Robotics Emerges As A New Business Priority

Among the significant organisational changes is the establishment of Toyota Robotics as a company-wide organisation under direct corporate oversight. The initiative builds on Toyota's manufacturing and engineering capabilities and positions robotics as a key pillar of its future business.

Takefumi Shiga, Operating Officer and Chief Production Officer, will also head the new organisation. Toyota plans to consolidate robotics-related expertise, personnel and functions across the company to accelerate the practical application, commercialisation and deployment of robots in manufacturing and other areas.

The company said its approach would focus on developing robots as partners that complement human capabilities rather than replace jobs.

Furthermore, Toyota will also establish a Toyota Philosophy and Education Group, headed by Chairman Akio Toyoda. The new group will focus on developing future leaders and passing on Toyota's manufacturing philosophy, technical skills and organisational values through practical, hands-on learning.

In another structural change, the Carbon Neutral Engineering Development Center will be dissolved, with its functions integrated into the Powertrain Company. The consolidation is intended to strengthen the connection between technology development and product implementation, particularly in hybrid systems, while supporting Toyota's carbon neutrality ambitions.

The Frontier Research Center will also be abolished, with its functions transferred to the Advanced R&D and Engineering Company and Software Development Center to bring future technology research closer to product development and commercialisation.

Toyota will additionally reorganise its External & Public Affairs Group by integrating selected public relations and investor relations functions to strengthen corporate communications and technology messaging across Toyota, Lexus and GAZOO Racing.

Leadership Changes Across Global Markets

The restructuring also involves changes to Toyota's regional leadership. Mark Templin will become CEO of the North America Region, Sukenaga Ota will head the China Region, while Masando Hashimoto will take charge of the Asia Region. Motonobu Kawamura has been appointed President of Business Planning & Operation.

Several existing regional leaders, including Tetsuo Ogawa, Tatsuro Ueda and Masahiko Maeda, will move into Senior Fellow positions.

The changes underline Toyota's wider organisational shift towards decentralised regional management, closer integration of engineering and business development, and greater emphasis on people and technology as it pursues its transformation into a mobility company.

Axis Bank has unveiled a suite of festive offers spanning retail lending, business banking and credit card services. The initiatives encompass home, personal, auto, two-wheeler, commercial vehicle, construction equipment and education loans, alongside working capital solutions and merchant discounts.

Auto loan provisions include 30-minute instant disbursement, a 50 percent reduction in processing fees, a 10 basis points interest rate discount on select electric vehicle models, financing of up to 100 percent of on-road prices, loan tenures of up to eight years and a waiver of foreclosure charges after 24 months.

Two-wheeler financing includes rates starting from 10.75 percent for premium motorcycles and a 0.5 percent rate discount for electric models. Commercial vehicle and construction equipment loans carry a standardised processing fee of INR 5,999.

Munish Sharda, Executive Director, Axis Bank, said, "Festive spending is increasingly shaped by considered choices, whether it is buying a home, upgrading a vehicle, meeting personal needs or investing in a business. At Axis Bank, our focus is to give customers flexibility and value to act on these plans with confidence. Our festive propositions bring together competitive financing solutions across retail and business banking, helping customers make the most of opportunities that matter to them."

Arnika Dixit, Group Head of Cards, Payments and Wealth Management, Axis Bank, said, "Customers increasingly look for their cards to deliver value that is relevant to how and where they spend. During the festive period, as spending extends across different needs and occasions, relevance, choice and flexibility become even more important. Our focus is to make festive and planned purchases more rewarding, while continuing to strengthen our cards proposition around evolving customer needs. Through our wide range of festive offers, we are enabling customers to get more from their Axis Bank Credit Cards and make their spends work harder for them."

IndiaTech.org has released India’s first Ease of Vehicle Ownership Index (EVOI), in partnership with Consumer VOICE, with Andhra Pradesh topping the rankings at 5.91 out of 10. Kerala ranked second at 5.74, while Uttar Pradesh finished last at 2.47, behind Bihar (2.51) and West Bengal (2.56). No state crossed 6.0, and 8 of the 15 assessed states clustered between 3.8 and 4.3, pointing to system-wide friction rather than isolated laggards. Together these states represent over 85 percent of India's organised used-car market.

The index scores states on six pillars – policy and regulation, digital infrastructure, process efficiency, transparency and accountability, institutional ecosystem and dealer support and cost and affordability – using a weighted geometric mean so strength in one area cannot mask weakness in another. It draws on a survey of over 1,000 buyers and sellers, interviews with dealers and RTO agents and a review of motor vehicle rules. Andhra Pradesh excelled in policy and regulation (7.90) but scored lowest on dealer ecosystem (2.22); Kerala's strength was digital infrastructure (7.02), its weakness transparency (4.86).

Cost was the weakest pillar nationally, with 12 of 15 states below 3.5. Manual verification and informal payments push transfer costs to nearly 10 times the statutory fee – INR 13,000 to INR 14,000 above the VAHAN fee in Bihar, and INR 7,000 to INR 8,000 against an official INR 800 at Tamil Nadu's border RTOs. Transfers take 7 to 10 days in Andhra Pradesh but over 30 days in Uttar Pradesh, and 13 states still demand physical copies despite online filing. Road tax on an INR 600,000 petrol car ranges from 3 percent in Uttar Pradesh to 14 percent in Karnataka and Telangana. Only Andhra Pradesh and Telangana run working interstate refunds; a CAG audit in Karnataka found a mean processing time of 436 days.

The 2022 Deemed Ownership framework has yielded 2,032 registered dealers, 875 in Kerala, while Delhi, Karnataka and Telangana have none. The survey found 39 percent of transfers still pending after sale, only 9.6 percent completed within two weeks, 61.5 percent unaware of mandatory in-person RTO visits, 62.7 percent unable to state total costs, 28.1 percent of sellers receiving challans afterwards and 52.5 percent willing to handle transfers themselves if fully online.

Recommendations include statutory timelines under Section 50 of the Motor Vehicles Act and Rule 55 of the CMVR, acceptance of DigiLocker and mParivahan documents as primary evidence, real-time bank-VAHAN integration, nationwide Deemed Ownership enforcement, a ‘One Bharat, One Road Tax’ framework, dealer authority to clear challans without owner OTP and automatic own-damage insurance carryover. IndiaTech.org will share scorecards with states and convene a national workshop, as the pre-owned market is projected to grow from USD 36.4 billion in 2025 to USD 73.5 billion by 2030.

Harsh Malhotra, Minister of State, Ministry of Road Transport and Highways, who launched the report, said, “The used car market in India is very big, and many people buy their first car as a second­hand or used car. I remember my first car, which was also a pre-owned car. While there are hassles and challenges in the transfer of ownership, the integration of policies and their implementation across states is very important, as differences in state-level governance often lead to problems. The Central Government is working on policies in this regard, and we are also taking steps such as setting up automated testing stations, which provide considerable relief, promote ease of doing business and help eliminate corruption. There is always scope for improvement, and we will discuss the recommendations basis this report findings to further enable ease of mobility.”

Dhiraj Gyani, CEO, IndiaTech.org, said, “A vehicle may travel seamlessly across state boundaries, but the administrative processes governing its ownership often do not. As India's pre-owned vehicle market becomes an increasingly important part of our mobility and consumer economy, the systems governing ownership transfers must evolve in step with the market. The EVOI 2026 findings highlight significant variations in state-level processes, as well as considerable scope for improvement across the country. Our objective is to encourage greater harmonisation, digital integration and administrative efficiency, enabling citizens and businesses to experience seamless and predictable vehicle ownership transfers, irrespective of where they are located. We believe that a more integrated national framework, including progress towards the vision of ‘One Bharat, One Road Tax’, can play an important role in unlocking the sector's full potential.”

Mohit Gupta, COO & Co-Founder, Spinny, said, “Every Indian deserves the opportunity to own a quality car. A car is an aspiration, the promise of new beginnings, freedom and possibilities for individuals and families. Buying one should be an exciting milestone, not weighed down by paperwork and complex processes. As an industry, we have a responsibility to help consumers understand existing processes and work closely with policymakers to drive meaningful reforms – support state-wise implementation of ADRV, simplify hypothecation addition and removal and advance end-to-end digitisation of processes. The Ease of Vehicle Ownership Index (EVOI) is an important step towards bringing Central and State Governments and industry players together to address these challenges and make car ownership simpler and easier for people across India.”

Vikram Chopra, Builder Cars24, said, “A car may change hands, but ownership and liability do not always follow. At Cars24, we see this firsthand: sellers remain exposed to liabilities long after handing over their vehicles, while buyers wait to be recognised as legal owners despite completing the purchase. This is not just a procedural delay but a gap in consumer protection and accountability. The Ease of Vehicle Ownership Index brings these challenges to light, identifies systemic gaps and gives states a framework to drive reforms through competitive federalism. Ownership transfer must be an integral part of every car transaction, ensuring that ownership, responsibility and liability move together, giving both buyers and sellers complete peace of mind.”