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)

Renault Group CEO François Provost and the management team will present a new strategic plan, ‘futuREady’, on 10 March 2026 at the Technocentre Renault in Guyancourt. The plan is designed to address changes in the automotive industry and establish a resilient business model.

The strategy focuses on transitioning the company from a ‘success story’ to a ‘success system’ through innovation and operational excellence. The Group intends to maintain a product offensive across its three brands to stimulate demand in Europe and high-growth international markets.

The futuREady plan emphasises the optimisation of management resources and the acceleration of production cycles. By anticipating market expectations and strengthening delivery efficiency, the Group aims to increase value and desirability across its portfolio.

Renault Group is preparing to open a new chapter in its history with futuREady, its strategic plan, designed to respond to the profound upheavals in the automotive industry and prepare the Group for a context that is more uncertain than ever. Building on its recent successes, the company will remain on the offensive with 'winning' products for each of its three brands, thus triggering a new dynamic in Europe and a targeted offensive in high-growth markets outside of Europe. futuREady is based on accelerating innovation throughout the company to anticipate market expectations. Being futuREady also means being at the top level on everything that can be controlled, by strengthening operational excellence: optimizing, accelerating and delivering efficiently to build a resilient model. The objective of the plan is clear: to move from a success story to a success system, designed to last.

Hindustan Zinc (HZL) has recorded 26.3 percent women representation across its workforce, according to a company announcement. This figure marks the highest gender diversity level in India’s metals and mining sector.

The company employs over 745 women professionals, with 314 serving as engineers or in equivalent technical roles. Women at the company are currently involved in frontline operations, including underground mining, smelting, lead mine rescue and heavy machinery operation.

Hindustan Zinc has implemented Industry 4.0 practices, including robotics, automation and tele-remote underground operations, to standardise processes. These technologies have enabled the inclusion of women in night shifts and underground roles traditionally dominated by men.

Key workforce milestones and initiatives include:

• Frontline Roles: Women operate heavy machinery and manage night shifts in both mining and smelting units.
• Mine Rescue: The company has formed an all-women underground mine rescue team.
• Digital Infrastructure: Operations use drone-based surveillance and remote blasting systems to enhance safety.
• Workplace Policies: HZL offers a one-year childcare sabbatical, a spouse hiring policy, and work-from-home flexibility.

The company has launched a 25-day campaign titled “She Knows the Ground She Stands On” to encourage women to pursue careers in STEM and mining. As part of this initiative, 15 women from science institutions were invited to visit the company’s mining ecosystem to engage with operational teams and digital technologies.

Arun Misra, CEO, Hindustan Zinc, said, “Empowering women in mining is not merely a matter of equity, it is a strategic imperative for the future of the industry. At Hindustan Zinc, a culture has been cultivated where women lead from the front—whether operating underground mines, driving automation, or advancing sustainable metallurgy. ‘She Knows the Ground She Stands On’ reflects a commitment to challenging outdated norms and ensuring that every capable woman has the opportunity to grow and excel. As the company works toward achieving 30% diversity by 2030, the focus remains on building a workplace where inclusion fuels innovation and gender is never a barrier to excellence.”

The company aims to reach a 30 percent diversity target by 2030. The current campaign is scheduled to conclude on 8 March 2026

BYD has been named as Chinese Corporate of the Year at the China-Britain Business Council’s annual China-Scotland Business Awards held at a recent ceremony in Edinburgh. The accolade was presented during the CBBC’s Chinese Burns Supper, an event now in its 13th year and firmly established in the bilateral business calendar.

This particular award recognises the significant contribution of Chinese enterprises to the Scottish economy. The council specifically highlighted BYD’s substantial influence in advancing the sustainable growth of the New Energy Vehicle sector within the Scottish market, alongside the company’s impressive UK-wide sales performance, which has now surpassed 50,000 vehicles. Liam Howel, Deputy Head of Retailer Marketing for BYD UK, accepted the award on behalf of the company.

The China-Britain Business Council, serving as the UK’s premier business network for fostering trade and investment with China since 1954, acts as an independent voice for business, providing members with essential advice, analysis and access to opportunities.

Beyond the awards, the evening also served a charitable purpose, raising funds for the Migrant Children’s Foundation, an organisation dedicated to enhancing the lives and educational opportunities of underprivileged children in China through various health and learning initiatives.

Bono Ge, Country Manager, BYD UK, said, “It’s a huge privilege for BYD to have been presented with this award. Receiving this recognition is further endorsement that BYD is pushing in the right direction; we are not only producing cars which appeal to buyers and buses that keep the public transport sector moving but further forwarding the move towards sustainability via our energy storage solutions. Most of all, we are creating a business that supports local jobs both in Scotland and the rest of the UK.”

Japanese tier 1 supplier Panasonic Automotive Systems Co., has announced it will change its corporate name and brand to Mobitera Inc., effective 1 April 2027. The rebranding follows a strategic partnership formed in December 2024 with the Apollo Group, aimed at strengthening software development and optimising the company's business portfolio.

The transition to Mobitera represents the company's focus on the evolution of the in-vehicle cockpit space. The new name combines ‘mobility’ with the Latin ‘iter’ (path) and the Japanese ‘terasu’ (to illuminate).

The organisation is pivoting to meet market demands by prioritising software capabilities alongside its hardware legacy. The company’s mission has been defined as creating a sustainable mobility society, supported by a vision titled ‘Joy in Motion.’

The new logo features a central ‘I’ intended to symbolise a focus on individuals. The corporate colour, ‘Mobitera Blue-Green,’ has been selected to represent the harmonisation of society and the environment.

Masashi Nagayasu, Chief Executive Officer, Panasonic Automotive Systems, said, “Mobitera reflects our vision to power the future of mobility with our high-quality technologies that elevate and enrich the human experience. As we evolve our organisation to meet the needs of today’s rapidly changing market, we are committed to staying true to the core values that have long defined who we are.”

Before change:	After change:
Panasonic ITS Co., Ltd.	Mobitera ITS Inc.
Panasonic Automotive Systems India Pvt. Ltd.	Mobitera India Pvt. Ltd.
Panasonic Automotive Electronics Co., Ltd.	Mobitera Solutions Inc.
Panasonic System Networks Evaluation Technology Co., Ltd.	Mobitera Evaluation Technologies Inc.
Harima SANYO Industries Co., Ltd.	Mobitera Wel Inc.
Panasonic Automotive Systems America, LLC	Mobitera America, LLC
Panasonic Automotive Systems de Mexico S.A. de C.V.	Mobitera De Mexico, S.A de C.V.
Panasonic Automotive Systems Reynosa Mexico S.A. de C.V.	Mobitera Reynosa Mexico, S.A de C.V.
Panasonic Automotive Systems Monterrey Mexico S.A. de C.V.	Mobitera Monterrey Mexico, S.A. de C.V.
Panasonic Automotive Sales Company de Mexico, S.A. de C.V.	Mobitera Sales Company de Mexico, S.A. de C.V.
Panasonic Automotive Shared Services Company Mexico, S.A. de C.V.	Mobitera Shared Service Company Mexico, S.A. de C.V.
Panasonic Automotive Systems Europe GmbH	Mobitera Europe GmbH
Panasonic Automotive Systems Czech, s.r.o.	Mobitera Czech, s.r.o.
OpenSynergy GmbH	No change
Panasonic Automotive Systems Asia Pacific Co., Ltd.	Mobitera Asia Pacific Co., Ltd.
Panasonic Automotive Systems Malaysia Sdn. Bhd.	Mobitera Malaysia Sdn. Bhd.