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)

BYD, the world’s leading manufacturer of New Energy Vehicles, will once again serve as the headline sponsor for the British Vehicle Rental and Leasing Association (BVRLA) Annual Dinner in 2026. This marks the third consecutive year the company has supported the prestigious event, which is set to take place on 4 March 2026 at the JW Marriott Grosvenor House Hotel on Park Lane, London. The dinner is widely recognised as the premier gathering for professionals across the rental, fleet management and leasing sectors.

Through its ongoing sponsorship since 2024, BYD reaffirms its commitment to this vital segment of the UK automotive market. The company’s expanding presence was underscored in 2025 by the introduction of several new models, including the SEALION 7, DOLPHIN SURF, SEAL 6 Saloon and Touring and the ATTO 2. These launches contributed to significant sales figures, with 21,824 units delivered to fleet customers and 5,964 to the rental sector. The momentum has continued into 2026 with the debut of the SEALION 5 DM-i, while the ATTO 2 DM-i and ATTO 3 EVO are expected to arrive shortly. Supporting this growth is a dedicated UK fleet team of 11 specialists, offering tailored product and service expertise.

The BVRLA represents around 1,000 member organisations, ranging from SMEs to large public companies, all operating within or alongside the UK’s vehicle rental and leasing industries. By engaging with government and upholding professional standards, the association enables its members to provide safe, sustainable and accessible transport solutions. This year’s Annual Dinner will feature the presentation of the Industry Hero Awards and live entertainment from award-winning comedian Tom Ward, celebrating excellence across the sector.

The Society of Indian Automobile Manufacturers (SIAM) convened the 7th SIAM CSR Conclave in New Delhi, themed ‘CSR Partnerships – From Shared Vision to Shared Value’. The event brought together industry leaders, CSR practitioners, policymakers, NGOs and development experts to explore collaborative models for driving inclusive growth and national development.

The inaugural session, titled ‘CSR as National Development Catalyst - Building the Nation, Responsibly’, featured key dignitaries who set the tone for discussions on sustainable nation-building. Prashant K Banerjee, Executive Director of SIAM, welcomed attendees and highlighted the automobile industry's extensive national presence, emphasising its responsibility to engage communities sustainably. He linked industry efforts to the Viksit Bharat 2047 vision, noting that businesses must look beyond sectoral growth to include social development across the country. The session included a screening of SIAM CSR initiatives and the release of the SIAM CSR Compendium, showcasing member companies' key projects.

Guest of Honour Dr Bhaskar Chatterjee, IAS (Retd.), Director General & CEO of the Indian Institute of Corporate Affairs, traced CSR's evolution from charity to statutory obligation, calling for CSR 2.0 with fresh thinking, technology adoption like AI for verifiable data, third-party evaluation and professionalisation. He urged the automobile sector to prioritise waste management, process re-engineering and carbon capture, insisting that CSR must move from the backroom to the boardroom with robust governance.

Puneet Anand, Chairman of the SIAM CSR & Community Services Group and Associate Vice President & Vertical Head at Hyundai Motor India Ltd., noted India's pioneering CSR legislation has mobilised nearly INR 2.2 trillion from about 800 organisations. He stressed the need to move beyond the statutory two percent threshold towards measurable outcomes, skill development, community resilience and replicable district-level models through collaboration.

Other contributors to the session included Prabhakant Jain, CSR Head of D S Group; Yashpal Sachar, Vice President (Corporate Affairs) at Ashok Leyland Ltd.; Tarun Agarwal, Sr Vice President & Head-CSR at Maruti Suzuki India Ltd. and Sulekha Kaul, Partner at Vaish & Associates Advocates, who shared insights on impactful CSR models.

Rajeev Taneja, Co-Chair of the SIAM CSR & Community Services Group and Vertical Head – CSR Operation at Honda Motorcycle & Scooter India Ltd., delivered closing remarks, emphasising CSR's centrality to inclusive growth. He called for evolution from compliance to conviction, with intentional, measurable collaboration focused on empathy, dignity and tangible change, supported by transparency and alignment with national priorities.

A thematic session on ‘Educational and Corporate Outreach towards CSR Pillars’ was moderated by Anuj Guglani, Founder & CEO of WAF Group, addressing environmental rejuvenation, road safety, education, health, sanitation and skills development. Session Chairman Rajendra Raut, Co-Chair of the SIAM CSR & Community Services Group and Director (Corporate & Govt. Affairs) at JSW MG Motor India, identified education as the enabling force strengthening all CSR pillars, advocating for partnership and co-creation over donor-recipient approaches. Presentations followed from Sanchita Vaish, Lead Specialist-Global Entity Governance & CSR Lead (India) at Baker Hughes; Praveen Karn, Group Head Sustainability & CSR at Minda Group; Dr Veenu Shankar, Assistant Professor at Delhi Technological University; Anjali Makhija, CEO of S. M. Sehgal Foundation and Dr Chitra, CEO of Indian Head Injury Foundation.

A panel discussion on ‘NGO & Corporate Perspective on Successful Collaboration Models towards CSR Execution’ was moderated by Mugdha Mishra, Editor of Auto Media Strategy at Autocar India. Panellists included Arindam Lahiri, CEO of ASDC; Rahul Bansal, Head of Private & Public Sector Partnerships at UNICEF; Shailendra Singh, Director of Dhartie Warriors Foundation; Pritika Chand, Corporate Head at Jindal Stainless; Prabhu Nagaraj, Head – Corporate Affairs at Honda Motorcycle & Scooter India Pvt. Ltd. and Co-Chairman of the SIAM Skilling Group; Ajay Bhatt, Head-Comm., Ex. Affairs, Sustainability & CSR at Škoda Auto Volkswagen India Pvt. Ltd.; Saurabh Sharma, Head CSR & ESG at Hyundai Motor India Ltd. and Runa Ahlawat, General Manager at JSW MG Motor India. They emphasised collaboration's importance in CSR execution.

The day's highlight was a Fireside Chat on ‘CSR Partnerships – From Shared Vision to Shared Value’, moderated by Mugdha Mishra, where Guest of Honour Dr Bhaskar Chatterjee reiterated the need for sustainability practices like waste management, process re-engineering and carbon capture in the automobile industry.

The conclave concluded with an Award Ceremony recognising outstanding CSR contributions. Puneet Anand delivered opening remarks. SIAM CSR awards were distributed by dignitaries including Dr Bhaskar Chatterjee; Alok Jaitley, President – SAFE & EVP at Maruti Suzuki India Ltd.; Puneet Anand; Rajeev Taneja; Rajendra Raut; Rajesh Menon, Director General of SIAM and Prashant K Banerjee. Awards under Skill Enhancement and Education went to Kedman Skilled India Foundation (Honda) and Centum Foundation (Mahindra & Mahindra). Healthcare & Sanitation awards were presented to Karma Healthcare Trust (Hyundai) and Sparsha Trust (Toyota). Road Safety awards recognised Learning Links Foundation (Ashok Leyland) and The TSL Foundation (Mahindra & Mahindra). Environmental Rejuvenation awards honoured Mahabodhi International Meditation Centre (Škoda Auto Volkswagen) and NAAM Foundation (TATA Motors).

The conclave reaffirmed SIAM's commitment to collaborating with governments, industry leaders and stakeholders to advance sustainable mobility and contribute to India's Sustainable Development Goals by 2030, aligned with its mission of building the nation responsibly.

Antolin, a supplier of automotive interior technology, has announced the appointment of Emma Antolín Granet as its Executive Chair. The Board of Directors also appointed Ernesto Antolin Calzada as Vice-Chairman.

Ernesto Antolín Arribas steps down as chairman after 10 years to focus on the company's institutional affairs and representation. The leadership transition coincides with the development of a strategic plan focused on the company's financial position, margin improvement and cash generation.

The board indicated that the new strategy will build upon the current Transformation Plan. The primary objectives involve reinforcing the balance sheet and accelerating value creation through its three business units: Headliners, Cockpit & Door Systems, and Technology Solutions.

Antolin operates 111 factories in 23 countries and employs 20,000 people. The company reported revenue of EUR 4.19 billion in 2024.

Granet previously served as Vice-Chair and a Member of the Audit and Nominations committees. She holds an MBA and a Master’s in Financial Management from IE University, with further studies from Cambridge and Harvard Business School.

Ernesto Antolín Calzada joins the board after holding roles in project management and industrial operations at Antolin. His background includes experience in the financial department of Telefónica and in mergers and acquisitions at a law firm in London.

Emma Antolin, stated, "I am grateful for the confidence placed in me by the Board of Directors and I take on these new responsibilities with great determination. Over the past several years I have witnessed firsthand the strength of this Company and the talent of our people. My priority is to continue consolidating our market leadership position and delivering sustainable, long-term growth. I would also like to thank Ernesto Antolín for his work, strong commitment and dedication during the past years at the helm of the Company."

Maruti Suzuki India Limited has achieved a significant milestone in sustainable logistics by securing international recognition for its Gujarat-based in-plant railway siding. This initiative has been officially registered as the world’s first Modal Shift Transportation Project under Verra’s Verified Carbon Standard (VCS) programme. By transitioning vehicle dispatches from road to rail – a considerably more efficient and environmentally friendly mode of transport – the company is establishing a new benchmark in the sector.

The project is estimated to generate approximately 170,000 carbon credits over a 10-year period, spanning from the fiscal year 2023–24 to 2032–33. These emission reductions were calculated using the AM0090 methodology, which aligns with the Clean Development Mechanism of the United Nations Framework Convention on Climate Change. Following a rigorous independent verification of the carbon savings, Verra will officially issue the credits to Maruti Suzuki under its VCS programme.

Beyond its environmental impact, this initiative supports several United Nations Sustainable Development Goals. It notably contributes to Good Health and Well-being (SDG 3), fosters Decent Work and Economic Growth (SDG 8) and takes concrete action on Climate Change (SDG 13), demonstrating a comprehensive approach to sustainable development.

Hisashi Takeuchi, Managing Director & CEO, Maruti Suzuki India Limited, said, “This is a proud moment for Maruti Suzuki as our Gujarat in-plant railway siding is recognised as the world’s first Verra-registered Modal Shift in Transportation project. By transitioning vehicle movement from road to rail, the project demonstrates how scale, operational efficiency and environmental responsibility can seamlessly go hand in hand. Leveraging the inherent efficiency of rail transport, the Gujarat in-plant railway siding has significantly reduced the carbon footprint of our logistics operations while also easing road congestion and lowering overall fossil fuel consumption. We are honoured by the recognition from Verra. This milestone marks a significant step forward in our sustainability journey and reinforces our commitment to setting industry benchmarks that align with India’s strong steps towards net zero emissions.”