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)

Pluto Mobility, a Delhi-based electric mobility startup focused on last-mile logistics, has just closed a seed funding round at USD 2 million. The investment was steered by Version One Ventures, with Grad Capital also contributing. Notably, the round drew interest from founders and senior figures at companies like Delhivery, OfBusiness, Pixxel and Boom Supersonic, signalling strong vote of confidence from within the logistics and tech ecosystems.

The startup was launched by Akshat Bhatia and Himanshu Panda with a specific mission: to design electric vehicles from the ground up for the rigors of Indian urban logistics. Rather than adapting existing two-wheelers, they are building something purpose-built. The funds will go towards sharpening their engineering focus, growing their team and setting up pilot runs in key city markets.

What sets Pluto apart is its vehicle design. It is roughly the size of a scooter but fully enclosed, offering protection against rain and heat. More importantly, it can accommodate twice the number of parcels per trip compared to a standard two-wheeler. That efficiency gain is not accidental. The founders have rethought everything – from chassis layout to cargo space – based on how delivery agents actually work. The result is a vehicle that boosts throughput without asking operators to compromise on safety or manoeuvrability.

This matters because most delivery fleets today still run on vehicles built for personal commute. They are not equipped for the stop-start, high-volume nature of e-commerce or quick-commerce deliveries. Operators often end up overloading bikes or switching to bulkier vehicles that cannot navigate narrow lanes. Pluto aims to fill that gap with a solution that is compact, durable and weather-resistant.

Pilot deployments are scheduled to begin later this year, with a focus on quick-commerce and e-commerce players looking for smarter ways to move goods through crowded cities.

Akshat Bhatia, CEO, Pluto Mobility, said, “India’s last-mile challenge isn’t speed, incentives or apps. It’s that delivery operations are built on vehicles never designed for delivery workloads. That mismatch caps how much can be moved per trip, increases failures at scale and quietly affects delivery economics.”

Boris Wertz, Founding Partner, Version One Ventures, said, “Pluto Mobility is taking a fundamentally different approach to last-mile delivery by designing vehicles specifically for throughput and operational reliability.”

Andreas Mindt, Head of Design for the Volkswagen brand, has been appointed to lead Group Design for the Volkswagen Group, effective 1 March 2026. He succeeds Michael Mauer, who is departing as part of a transition.

He will hold this role alongside his current position at the Volkswagen brand. His appointment follows Mauer’s previous handover of responsibilities at Porsche to a successor.

Andreas Mindt joined the Volkswagen Group in 1996. His career includes work on the first-generation Tiguan and the Golf 7. Between 2014 and 2021, he led exterior design at Audi, overseeing models from the A1 to the e-tron GT. He later served as Director of Bentley Design, where he developed the design language for the Bentley Batur, before becoming Head of Design for Volkswagen Passenger Cars in 2023.

Michael Mauer joined the Group in 2004 as Head of Design at Porsche. During his tenure, he oversaw the Cayenne revision, the Panamera, and the 918 Spyder. He has served as Head of Group Design since January 2023, focused on establishing brand identities across the portfolio.

The role of Group Design is to differentiate the various brands within the Volkswagen Group by defining their specific identities. The strategy focuses on making each brand recognisable while ensuring products meet regional market requirements and customer expectations.

Oliver Blume, CEO, Volkswagen Group, said, “I would like to warmly thank Michael Mauer for his outstanding work and for the close and collaborative working relationship over the years. He shaped an era at Porsche. As Head of Group Design he also established a design philosophy across all brands that provides orientation and ensures recognition – with clearly defined brand and product identities. His work has shaped the style of our brands and will remain visible in the future.”

“I am looking forward to working more closely with Andy Mindt. With his track record at the Volkswagen brand and his expertise, he has made a significant impact in a short time and played a key role in ensuring that our cars are clearly recognisable as genuine Volkswagen models again,” added Blume.

The Society of Indian Automobile Manufacturers (SIAM) organised the 4th International Conference on Sustainable Circularity today at the India Habitat Centre. The event, part of SIAM Sustainable Mobility Week 2026, focused on the transition to an automotive circular economy through policy, innovation and industry collaboration.

The conference addressed the lifecycle of automotive production, including eco-design, material use, recycling systems and regulatory alignment. A context paper titled ‘Accelerating India’s Transition to an Automotive Circular Economy’ was released during the proceedings.

The event saw discussions highlighting the expansion of India's scrapping infrastructure. There are currently between 125 and 130 Registered Vehicle Scrapping Facilities (RVSFs) operational across the country. Officials noted that while technology for recycling exists, challenges remains regarding traceability, policy clarity and the informal sector.

Key priorities identified for the sector include:

• 3R Framework: Implementation of schemes to reduce resource use, reuse components, and recover materials.
• Extended Producer Responsibility (EPR): Strengthening regulations to manage vehicle end-of-life.
• Digital Tracking: Improving the monitoring of vehicles to assist in disposal planning.
• Automated Testing: Expanding Automated Testing Stations to increase the flow of End-of-Life Vehicles (ELVs) to formal recyclers.

Mahmood Ahmed, Additional Secretary, Ministry of Road Transport and Highways, said, “We have a larger responsibility to meet the needs of the country. Our regulations and standards are aligned to reduce emissions, improve fuel efficiency, and promote cleaner fuels. The Vehicle Scrapping Policy, is a major step forward and the ecosystem is now developing with nearly 125 to 130 Registered Vehicle Scrapping Facilities operational.”

Prashant K Banerjee, Executive Director, SIAM, stated, “We must address air quality and vehicle end of life management, especially in Delhi NCR. ELV feed to Registered Vehicle Scrappage Facilities (RVSFs) needs to be increased. Documentation gaps with previous owners, especially for two-wheelers, and pending issues like unpaid challans, insurance and road tax must be resolved urgently.”

Vikram Kasbekar, Executive Director and CTO, Hero MotoCorp, added, “The development of Registered Vehicle Scrapping Facilities is key to a sustainable mobility ecosystem. Initiatives like PM E-Drive have strengthened the industry and sped up readiness. Engaging non-registered recyclers constructively will help formalise processes.”

The event featured sessions on material innovation and the role of startups in recycling. Participants discussed the use of copper, tyre recycling and carbon business models. The consensus among attendees was that circularity must be integrated into initial product design rather than being treated solely as a post-consumer activity.

The Sustainable Mobility Week concludes on 19 February with the 1st International Conference on Automotive Material Compliance and Sustainability.

Audi is set to make its highly anticipated debut as a factory team in Formula 1 this March, and to mark the occasion, it is launching a comprehensive new merchandise line. Developed in partnership with adidas, the adidas x Audi Revolut F1 Team collection will be available to the public starting 19 February 2026. The initiative is designed to galvanise a global community and attract new followers to the brand by offering a tangible connection to its motorsport project.

The partnership has produced a diverse range of over 160 products, structured into two primary categories. The first is official teamwear, which features high-performance functional clothing unveiled in Berlin this January. This line incorporates advanced adidas technologies and is meticulously engineered for the specific demands of the team's personnel. This includes race-ready athletic wear for drivers Nico Hülkenberg and Gabriel Bortoleto, ergonomic and stylish garments for engineers during long stints at the track and durable, function-focused attire for the mechanics.

Complementing this is a dedicated fanwear collection aimed at a wider audience. Designed for everyday wear, it spans T-shirts, hoodies, jackets and footwear, blending modern lifestyle aesthetics with sportswear comfort. The fan range includes core essentials in the team’s primary colours to express team identity, as well as elevated pieces with subtle branding for a contemporary look. Exclusive merchandise for the two drivers is also featured. Throughout the season, limited-edition special drops will be introduced, celebrating the team's evolving identity and culture.

The entire collection draws its aesthetic from the Audi R26 race car. The teamwear features subtle grey and chalk tones inspired by the car’s titanium-coloured paintwork, while red accents serve as a unifying element, reflecting Audi’s broader visual identity in the championship. From 19 February 2026, fans will be able to purchase the collection through the team’s new e-commerce platform, as well as from adidas and select retail partners.