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)

Switch Mobility, the electric bus and light commercial vehicle brand of the Hinduja Group, has signed a Memorandum of Understanding with Adhiyamaan College of Engineering to establish a Skill Development Centre for Electric Vehicle Technology in Hosur, Tamil Nadu.

The facility will function as a dedicated training site to upskill students and industry personnel in electric commercial vehicle technology. The curriculum will focus on practical applications, including battery technology, power electronics, charging infrastructure, real-world vehicle systems and electric mobility operations.

The initiative marks the establishment of a specialised electric vehicle skilling hub in the Hosur industrial belt, aiming to supply trained technical workforce to the region's expanding commercial electric vehicle manufacturing sector.

R G Venkataraman, Chief Commercial Officer, Switch Mobility, said, "As part of the MoU, Switch Mobility will extend its technical expertise and support towards this initiative. This program will entail practical industrial exposure, learning and skill development."

Radhakrishnan, Principal of Adhiyamaan College of Engineering, said, "We are proud to be associated with an industry leader like Switch Mobility. We believe that this collaboration will provide our students with valuable hands-on exposure to EV technologies and strengthen the industry–academia partnership in the field of electric mobility. With this Centre, our vision is to offer a practical learning environment to enhance their employability and prepare them to meet the evolving demands of the electric mobility industry."

Toyota Kirloskar Motor, one of the leading passenger vehicle manufacturers in the country, has announced five of its employees were awarded the Medallion for Excellence at the 48th WorldSkills Competition 2026, held in Shanghai, China, from 22 to 27 September 2026.

Competing across three skill categories – mechatronics, additive manufacturing and robot systems integration – the company's employees secured five of the total 20 Medallions for Excellence won by the Indian contingent.

The WorldSkills Competition featured over 1,400 participants from 68 countries competing across 64 technical trade categories. The Medallion for Excellence is awarded to competitors who meet international standards by achieving performance benchmark scores below the gold, silver and bronze medal positions.

In the Mechatronics category, Deepu Mudigerepalya Srinivasa and Jayanth Kariyappa received the recognition. Pavan Bhadravati Suresha was awarded in Additive Manufacturing, while Abhishek Somanna Shignalli and Vinay Muttayya Hiremath received medallions in Robot Systems Integration. Additionally, TKM employees Tejas B.S. and Praveen Yankappa Hunakunti represented India in the Auto Body Repair and Welding categories respectively.

G Shankara, Chief Strategy Officer, Toyota Kirloskar Motor, said, "The achievements of our employees at the WorldSkills Competition 2026 exemplify the spirit of excellence, innovation and continuous learning. Five of our employees winning Medallions for Excellence in 3 categories on a global stage is a proud moment for Toyota Kirloskar Motor and for the nation. Their success reinforces our commitment to nurturing world-class talent and supporting India's journey towards becoming the global skill capital. We hope their journey inspires the next generation of young professionals to pursue excellence in technical and vocational careers."

Toyota Kirloskar Motor conducts technical training through the Toyota Technical Training Institute (TTTI), established in 2007 to provide a three-year residential programme for students from rural Karnataka. The automaker has trained over 140,000 individuals through vocational initiatives, including partnerships with over 120 Industrial Training Institutes (ITIs), 30 Government Tool Room & Training Centres (GTTCs), the Toyota Technical Education Program and Toyota Kaushalya.

Japanese tier 1 supplier Denso Corporation and Niterra Co., have agreed to terminate their business transfer agreement concerning Denso's Spark Plug and Exhaust Gas Sensor business, which was originally executed on 1 September 2025.

The initial agreement followed a memorandum of understanding signed in July 2023, under which both companies explored transferring Denso's spark plug and exhaust gas sensor operations – including oxygen sensors and air-fuel ratio sensors – to Niterra to streamline internal combustion engine (ICE) component manufacturing amidst global vehicle electrification.

The revision in the original plan is said to be due to changes in the market environment, which led Denso to reassess its strategy under its ‘CORE 2030’ Mid-Term Management Plan.

While vehicle electrification has progressed, global market conditions, regional energy supplies and regulatory environments have sustained demand for internal combustion and hybrid powertrains longer than projected. Following strategic reviews, Denso concluded that maintaining its spark plug and sensor business in-house remains optimal for supporting multi-powertrain vehicle systems, prompting the mutual agreement with Niterra to dissolve the transfer deal.

Denso stated that it will continue operating the business independently to meet powertrain requirements and supply chain demands across global markets.

In what comes as good news for the Indian automotive industry, competitors trained by the Automotive Skills Development Council (ASDC) secured five Medals for Excellence at the 48th WorldSkills Competition held in Shanghai, China, from 22 to 27 September 2026.

The event featured more than 1,400 participants from 70 countries, with India fielding a contingent of 70 competitors across 63 skill categories. Team India recorded a Top 10 global finish with six Silver Medals and 20 Medals for Excellence overall. The ASDC prepared candidates through training programmes, hands-on practice, exposure visits and competitions organised in collaboration with industry and academic partners.

The ASDC-supported participants awarded Medals for Excellence were Pavan Bhadravati Suresha in Additive Manufacturing, Kaif Khan in Car Painting, Md Seraj in Automobile Technology, Mallinath and Suhan Mascarenhas in Industry 4.0 and Abhishek Somanna Shignalli alongside Vinay Muttayya Hiremath in Robot Systems Integration.

Vinkesh Gulati, Chairperson, ASDC, said, "This stellar performance at WorldSkills Shanghai 2026 is a proud moment for ASDC and a testament to the immense talent of India’s youth. Winning Medals for Excellence across advanced automotive domains reflects our relentless commitment to aligning skill training with global standards. Our young champions have proved that Indian automotive talent is second to none."

Prasanna Pahade, CEO, ASDC, said, "Securing five Medallions across critical futuristic skills like Industry 4.0, Robotics, and Additive Manufacturing reaffirms the impact of ASDC's industry-aligned curriculum and intensive mentorship. The benchmark perfection demanded at WorldSkills validates our mission to build a future-ready workforce for the global mobility sector."

Training support for the participants was provided by industry organisations and institutes including Maruti Suzuki India, Toyota Kirloskar Motor, Mahindra & Mahindra, FANUC India, Axalta Coating Systems India, Festo India, SHINING 3D, Autodesk, NAMTECH, International Automobile Centre of Excellence, NTTF and Synoptic Skills Studio.