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)

Mahindra & Mahindra (M&M) has reported a twenty-fold surge in granted patents over the past decade, rising from just 56 patents accumulated since its inception through fiscal year 2016 to 1,334 by fiscal year 2026. The Indian automotive and farm equipment major attributed this leap to sustained investment in research and development, alongside a firm backing of the ‘Make in India’ initiative. As of March 2026, the company’s total patent applications reached 2,728, underscoring a systematic drive toward technological innovation and engineering excellence.

An analysis of the 1,334 granted patents reveals that 60 percent are linked to the automotive business, while the remaining 40 percent belong to the farm equipment division. The company’s application-to-patent conversion ratio has improved dramatically from just eight percent in fiscal 2016 to over 65 percent for applications filed in the last 10 years. This patent portfolio also includes filings from M&M’s subsidiary, Mahindra Electric Automobile Ltd, reflecting a broadening scope of intellectual property development.

Beyond the numerical growth in patents, M&M’s expanded research capabilities have enabled more immersive technological experiences for customers. The company has also garnered multiple prestigious accolades in the past year alone, including the CII IP Award for Best Patent Portfolio, recognition as one of India’s Top 50 Innovative Companies 2025, the CII National Award for Industry-Academia Partnership, the Questel IP Excellence Award and honours at the CMO Asia Awards 2025.

Venttup, a Manufacturing as a Service (MaaS) company,  has announced the appointment of Prashanth R. Menon as strategic advisor. He will work on the company’s strategy, expansion plans and growth roadmap, with a focus on profitability.

The company seeks to connect industries with manufacturing solutions from India and focuses on innovation to alter the manufacturing sector by aligning efficiency with the demand for sustainability.

Menon has experience in strategy, operations and business transformation. He previously served as Director – India at Tesla, where he managed the strategy for the company's entry into India and established its operations. He also served as Chairman of the Board for Tesla India.

Sandeep Nair, Co-Founder & CEO, Venttup, said, “We are excited to welcome Prashanth R. Menon to Venttup. His deep global experience in strategy and transformation, combined with his leadership in scaling global organisations, will help us accelerate our journey towards building a world-class manufacturing startup from India. We are focused on localisation and rapid development of critical components to support the growing deep-tech ecosystem."

Prior to his role in India, Menon was Director – Advisory at Tesla US, where he led teams focused on revenue, productivity and cost. Earlier in his career, he worked with EY, advising on corporate strategy, mergers and acquisitions, supply chain management and working capital.

Prashanth R. Menon, said, “I am impressed by the outlook and the energy of the Venttup leadership team, and their vision to build a sustainable and local supply chain to fulfill global needs. Venttup has a promising business model, and it is aligned with the Government of India’s “Make in India” initiative. I am looking forward to guiding the team in achieving their growth and operational goals.”

Menon will work with the founders and leadership team to shape the growth roadmap, drive expansion and manage scalability. He will also support investor engagement and partnerships.

Bhaskar Majumdar, Managing Partner, Unicorn India Ventures, added, “A warm welcome to Mr Menon to the Venttup Advisory team. His deep industry experience, decades of global exposure in the US, strong understanding of evolving global supply chain dynamics, and keen interest in contributing to India’s manufacturing deep-tech ecosystem will significantly strengthen Venttup’s scale-up strategy and growth journey."

L&T Technology Services (LTTS) has officially announced the induction of Amitabh Kant and Rajeev Gupta to its Board of Directors, effective 22 April 2026. The appointments were finalised during the same board meeting where the company approved its FY2026 financial results, reporting a 14 percent revenue growth.

The additions to the Board aim to strengthen the company’s governance and strategic focus on ‘Engineering Intelligence’ and sustainable global growth.

Amitabh Kant is one of India’s most influential policy architects, previously serving as the CEO of NITI Aayog and as India’s G20 Sherpa. His 5-year term (extending to April 2031) is expected to provide strategic depth in innovation, sustainability and international economic transformation.

Rajeev Gupta, Executive Director has served as the Chief Financial Officer at LTTS since 2020. He has been promoted to the Board for a 3-year term and has nearly three decades of experience at firms like Amazon, PwC and Capgemini. He has been central to LTTS’ financial resilience and M&A strategy.

The leadership changes come as LTTS recalibrates its portfolio toward high-growth, technology-driven sectors. The company recently divested its Smart World and Communication (SWC) business to sharpen its focus on AI-integrated engineering services.

Amit Chadha, CEO & MD, L&T Technology Services, said, “We are delighted to welcome Amitabh Kant to the LTTS Board. His unparalleled experience in shaping India’s growth story, coupled with his forward-looking vision on innovation and sustainability, will be invaluable as we scale new heights globally. I also congratulate our CFO, Rajeev Gupta on his appointment to the Board. His strong financial stewardship and strategic acumen have been instrumental in strengthening LTTS’ growth trajectory, and we look forward to his continued contributions at the Board level.”

Rajeev Gupta, added, “I am honoured to be inducted into the Board of Directors at LTTS. It is a privilege to be part of such an esteemed group of Board Members and I look forward to contributing to the company’s continued growth and value creation journey.”

TUV Rheinland, a global leader in independent testing and certification, has inaugurated its state-of-the-art Automotive Component Testing Laboratory (ACT Lab) in Manesar, Haryana. The facility is designed to support the Indian automotive industry by providing globally recognised testing for both conventional and electric vehicle (EV) components.

Strategically located in a major automotive hub, the lab focuses on accelerating time-to-market for manufacturers while ensuring compliance with evolving international and OEM-specific standards.

The ACT Lab offers a comprehensive range of end-to-end testing solutions under one roof, utilising advanced systems from leading international manufacturers:

• Structural & Durability Testing: Includes fatigue and lifecycle assessments for critical components to ensure long-term reliability.
• Environmental Simulation: Replicates extreme real-world conditions to test component resilience against corrosion, temperature fluctuations and moisture.
• Material Analysis: Provides deep insights into the performance and composition of both metals and polymers used in next-generation vehicle architectures.
• Operational Replication: The facility is specifically engineered to replicate the operational environments of diverse automotive sub-assemblies.

The investment highlights India's role as a high-growth market within TUV Rheinland’s global mobility portfolio. The facility acts not just as a testing centre but as a collaborative platform for innovation in the electric mobility ecosystem.

Dr. Matthias Schubert, Executive Vice-President Mobility at TUV Rheinland Group, said, “Our investment in the Automotive Component Testing Laboratory in Manesar reflects TUV Rheinland’s long-term strategic commitment to India as a key growth market. As the mobility sector undergoes rapid transformation, this facility enables us to support manufacturers with advanced testing capabilities that not only ensure compliance but also drive innovation, safety, and global competitiveness.”

Rajendra Kisanrao Bandal, Vice-President, Mobility at TUV Rheinland India, added, “This facility goes beyond a conventional testing laboratory – it is a platform for collaboration and innovation. Combining global expertise with local insight, it enables manufacturers to enhance quality, reliability, and performance, while strengthening India’s position in the global mobility landscape.”