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)

Arete 22 Limited, an integrated precision aluminium mobility solutions provider, has submitted its Draft Red Herring Prospectus (DRHP) to the Securities and Exchange Board of India (SEBI) as it moves towards an initial public offering. The proposed issue consists of fresh equity shares with a face value of INR 10 each, aggregating up to INR 440 crore.

The company intends to deploy the net proceeds across several priorities. Working capital requirements would receive INR 150 crore, while INR 120 crore would go towards full or partial repayment and prepayment of certain borrowings. Approximately INR 34.82 crore has been earmarked for plant and machinery at existing manufacturing facilities, with the balance directed to general corporate purposes.

Incorporated in February 2021, Arete 22 acquired Unicast Autotech Private Limited in 2026. The company manufactures aluminium alloy wheels and precision aluminium high-pressure die-cast components for automotive original equipment manufacturers. Its core business centres on alloy wheels for motorcycles and scooters, while Unicast produces high-pressure die-cast components for engines, transmissions, powertrains and structural uses.

Operating on a business-to-business basis, Arete 22 supplies directly to two-wheeler OEM customers under a build-to-print model, producing wheels according to designs and specifications set by buyers. Two alloy wheel plants support this output: a Bilaspur, Haryana, facility with 3.60 million wheels of annual installed capacity and a Kolar, Karnataka, site with 2.40 million, together totalling 6.00 million wheels and spanning roughly 27,042 square metres near major automotive clusters.

Revenue distribution has widened considerably. Karnataka led in Fiscal 2026 at INR 144.29 crore, or 26.82 percent, followed by Tamil Nadu at INR 119.47 crore, Haryana at INR 110.85 crore and Uttarakhand at INR 91.60 crore. Andhra Pradesh and Rajasthan added INR 37.00 crore and INR 33.16 crore, respectively, a marked change from Fiscal 2024 when Tamil Nadu alone represented 76.85 percent.

Financial and operational metrics have climbed sharply. SKUs expanded from 9 to 49 between Fiscal 2024 and Fiscal 2026, wheels sold rose from 745,000 to 3,179,000 units and revenue per wheel grew from INR 1,457.58 to INR 1,671.46. Revenue from operations reached INR 537.95 crore from INR 112.46 crore, while profit after tax rose to INR 44.97 crore from INR 2.92 crore and EBITDA to INR 94.68 crore from INR 13.79 crore. Unistone Capital Private Limited is banker to the issue, with Bigshare Services Private Limited as registrar.

Toyota Kirloskar Motor (TKM), one of the leading passenger vehicle manufacturers, has released its Sustainability Report 2026, titled 'Progress that Powers Everyone', outlining the company's environment, social and governance (ESG) performance and manufacturing operations in India.

The report was presented by Ramalinga Reddy, Minister of Forest, Ecology & Environment for the Government of Karnataka, alongside B. Padmanabha, Senior Executive Vice President of Manufacturing at Toyota Kirloskar Motor.

In its product operations, the company maintains a multi-pathway powertrain strategy encompassing hybrid electric vehicles, battery electric vehicles, hydrogen technologies and alternative fuels. Hybrid models from Toyota represent approximately 80 percent of total hybrid vehicle sales in India, while the company introduced the Urban Cruiser Ebella as its first battery electric vehicle in the domestic market.

In manufacturing operations, Toyota Kirloskar Motor operated its facilities using 100 percent renewable electricity for the fifth consecutive year, eliminating Scope 2 greenhouse gas emissions. The company reported avoiding over 594,000 tonnes of carbon dioxide emissions since FY2012-13, while recycling more than 95 percent of manufacturing waste and sourcing over 90 percent of its operational water through recycling and rainwater harvesting.

Ramalinga Reddy said, "Environmental protection cannot remain confined to policies alone; it must become a habit that is reflected in the choices we make every day. Whether it is conserving water, reducing waste, adopting clean energy or preserving biodiversity, every effort counts. Industries have a significant role in leading this transformation because their actions influence people, communities and future generations. TKM's Sustainability Report 2026 is a reminder that sustained commitment and collective action are essential for building a greener and more resilient India."

B Padmanabha said, "At Toyota, sustainability is an integral part of how we create value for society. Guided by the Toyota Way and our commitment to ‘Producing /spreading Happiness for All', we continue to balance sustainable business growth with environmental stewardship and social progress. This Sustainability Report reflects the collective efforts of our employees, suppliers, dealers, and partners in advancing carbon reduction, resource efficiency, community development, and responsible governance. While we are encouraged by the progress made, we remain committed to continuous improvement and to contributing to a cleaner, safer, and more prosperous future for all. We believe that true success lies not only in making ever-better products, but in creating lasting value for society and future generations."

On human capital and community development, Toyota Kirloskar Motor trained over 140,000 individuals through the Toyota Technical Training Institute and partnerships with 120 Industrial Training Institutes and 30 Government Tool Room & Training Centres. During FY2025-26, the company allocated over INR 1,047 million towards corporate social responsibility initiatives covering education, healthcare, sanitation, water conservation, road safety and environmental restoration.

Maharashtra-based Abhijeet Dies & Tools and Italy's INEVO have signed an agreement establishing a joint venture entity, Abhinevo Technologies.

Headquartered in Pune, the new JV will develop, engineer, manufacture and commercialise moulds, tooling and manufacturing technology solutions for the automotive and plastics-processing sectors.

The agreement combines Abhijeet’s four decades of tooling and plastics manufacturing operations with INEVO’s European high-precision injection mould technologies. The new entity intends to localise manufacturing technologies in India across the value chain, covering product and process engineering, tool design, simulation, manufacturing, trials, validation and production support.

Jayamurugan Thangavel, CEO, Abhijeet Group, said, “This joint venture marks an important step towards technology-led manufacturing. By combining INEVO’s specialised European technology with Abhijeet’s engineering and manufacturing capabilities, we aim to build advanced capability in India and create a platform serving Indian and global customers.”

Abhijeet Raut, Director, Abhijeet Dies & Tools, said, “The real value of this partnership will be in taking advanced technologies from concept to industrialisation. Through Abhinevo, we aim to give customers access to sophisticated tooling and manufacturing solutions with closer engineering collaboration, faster development and globally benchmarked quality – converting technology into robust, repeatable and commercially viable manufacturing solutions.”

INEVO, spun off from the mould division of INglass in 2020, exports over 80 percent of its output globally, producing more than 100 injection tools per year. Its specialisation covers multi-material and multi-colour moulding, automotive lighting tooling, In-Mould Decoration (IMD), In-Mould Labelling (IML), injection on decorative and functional foils and surface technologies.

Roberto Fagarazzi, Managing Director – Sales, INEVO, said, “India is becoming increasingly important in the global automotive manufacturing landscape, and customers are looking for greater localisation without compromising technology, quality or manufacturing performance. We see a strong opportunity to bring INEVO’s experience in advanced moulds, multi-material technologies, smart surfaces and industrialisation closer to this market.”

“Abhijeet has a strong tooling and manufacturing foundation, engineering resources and an established automotive presence. The combination of INEVO’s specialised technology with Abhijeet’s manufacturing expertise creates a strong platform for long-term development. Our ambition is to develop solutions together in India, build local technical competence and progressively create opportunities that can serve customers both in India and internationally,” he added.

The initial technology scope for Abhinevo Technologies will encompass 2K and multi-component mould technology, polyurethane-based surface applications, IMD, IML, In-Mould Coating, film integration and process simulation. These processes target automotive interior and exterior components, functional panels, and smart surfaces for domestic automotive OEMs, Tier-1 suppliers and international export markets.

Nikhil Raut, Director, Abhijeet Dies & Tools, said, “This partnership is more than a business agreement. It brings together two companies, cultures and capabilities with a shared ambition to create something meaningful and long-lasting, built on trust, teamwork and mutual respect. The true success of Abhinevo will be measured by what our teams create together, the value we deliver to customers and the trust we build over the years ahead.”

Consultancy firm Crescendo Worldwide facilitated the partnership process, initiating partner identification in early 2025, which led to a Memorandum of Understanding in June 2025 prior to the final joint venture execution in September 2026.

Chinese automotive companies NIO Holding Co, and Zhejiang Geely Holding Group Co, have entered into a strategic agreement covering technology, operations and capital investments across their charging and battery swapping businesses. The partnership includes cross-equity investments, joint technology development and network integration.

As per the agreement, Geely Holding Group will acquire a 30 percent equity stake in NIO Power. The transaction involves Geely transferring a 100 percent equity interest in its battery-swapping subsidiary, Yiyi Power, to NIO Power, alongside a cash investment of RMB 640 million.

Following the completion of the deal, Yiyi Power's commercial fleet swapping operations will be integrated into NIO Power's infrastructure. In exchange, NIO will acquire a 10 percent equity stake in Geely's charging subsidiary, Haohan Energy, establishing interconnected charging networks between the two companies.

The agreement includes provisions for the co-development of unified battery swapping technologies and standards for passenger vehicles. Geely will design battery-swappable models compatible with NIO Power's swapping stations, while NIO Power will provide battery swapping services for these vehicles.

William Li, Founder, Chairman and CEO, NIO, said, “Over the past decade, China’s smart EV industry has made remarkable progress, driven by rapid advances in technology and continued innovation. Looking ahead, the industry needs not only to keep innovating, but also to become more efficient at turning innovation into value. This partnership brings together the strengths the two sides have built over the years, with closer collaboration across technology, standards, operations, assets, and capital. It represents an important exploration and innovative step toward addressing involution-style competition and building a more open and mutually beneficial industry ecosystem where automakers can work together to achieve high-quality growth. The collaboration between NIO and Geely in charging and battery swapping is open to the broader industry. We welcome and look forward to more industry peers joining us in creating a better recharging experience for users, supporting the industry’s transition to low-carbon, green energy, and shape a sustainable and brighter future.”

Andy AN Conghui, CEO, Geely Holding Group, said, “High-quality development of the automotive industry is not about scale alone. It calls for more resilient supply chains, higher quality and greater efficiency, safer and greener development, and a more open and collaborative ecosystem. Recharging networks are public infrastructure that serve society as a whole. They should be built together, shared openly, and connected across networks, so that users ultimately benefit the most. Geely Holding Group has long driven innovation in core new energy vehicle technologies, building an all-scenario recharging network that combines charging and swapping. This partnership marks another step toward the high-quality development of China’s intelligent connected new energy vehicle industry. With an open approach and a long-term commitment, Geely Holding Group will work with NIO and other industry partners to build a denser, more reliable, and safer recharging network, making mobility more seamless and worry-free for users.”

As of September 2026, NIO operates a network of 9,433 infrastructure sites in China, comprising 4,126 swapping stations and 5,307 charging locations housing 30,598 charging connectors. The company has set a target to operate 10,000 swapping stations by 2030.

Geely's charging unit, Haohan Energy, currently operates 2,500 charging stations with 12,000 connectors across 232 cities, with plans to expand to 22,000 stations containing over 100,000 connectors by end-2027.