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)

Palmer Energy Technology (PETL), a UK clean energy and battery technology group led by former Aston Martin CEO Dr Andy Palmer CMG, has confirmed its acquisition of Kleandrive’s business and assets as a going concern through administration. The acquisition preserves a specialist British engineering capability focused on heavy vehicle decarbonisation.

Based in Essex, Kleandrive specialises in retrofitting traditional diesel vehicles – specifically legacy diesel buses – by replacing their internal combustion engines with fully electric drivetrains. This approach allows fleet operators to transition to zero-emission running without the embedded carbon costs or high capital outlay associated with new electric bus procurement.

The acquisition integrates Kleandrive's repowering workflows into the PETL group's broader clean propulsion portfolio. PETL is a leading developer of battery and battery management system (BMS) technology, utilising capabilities from its wholly-owned subsidiary Brill Power, a University of Oxford spin-out.

The combined business establishes a vertically integrated structure with reach across multiple development phases:

• Battery cell selection and advanced management systems.
• Powertrain integration and heavy-duty electric vehicle (EV) conversion.
• Fleet deployment, live commercial relationships with major UK bus operators and aftermarket support.

This architecture provides PETL with a direct application channel for its proprietary battery and energy management technology in a high-impact segment of UK transit. Furthermore, it creates a foundation for future retrofit expansion into adjacent commercial sectors where the economics of repowering are increasingly favourable, including coaches, heavy goods vehicles (HGVs) and specialist commercial vehicles.

Heavy-duty buses represent an immediate opportunity within UK fleet electrification. Despite the UK government's end-of-sale date for new diesel buses and widespread operator commitments to zero-emission running, a significant portion of the national bus fleet remains heavily diesel-powered.

Repowering serves as a critical bridge for local authorities and regional operators working under strict capital constraints and decarbonisation targets. By converting existing assets, operators can lower capital costs compared to buying new vehicles, extend the useful life of their fleets and eliminate the manufacturing emissions of new vehicle fabrication.

Palmer Energy Technology intends to invest in the newly acquired capability as part of its wider clean energy portfolio. Decisions regarding the future operating structure, long-term asset deployment, and brand identity of the acquired business will be finalised and communicated in due course.

Dr Andy Palmer CMG said, “Britain keeps losing its industrial base one company at a time. I have spent years making the public argument that the UK cannot meet its decarbonisation targets or build a credible clean transport sector without homegrown businesses leading the way. This acquisition of Kleandrive’s business and assets as a going concern is a small but practical example of acting on that argument. Repowering existing diesel buses is one of the most cost-effective ways for operators to decarbonise their fleets. It deserves to be built here, by British engineers and we intend to make sure it is.”

The Society of Indian Automobile Manufacturers (SIAM) organised the 6th International Conference on ‘Climate Action: Accelerating India’s Transition to a Low-Carbon Future’, to mark World Environment Day.

The forum brought together automobile policymakers, industry CEOs, academic researchers and sustainability experts to detail decarbonisation pathways across the entire automotive value chain.

The conference emphasised that for a market as diverse as India, no single technology will satisfy the country's net-zero roadmap. Instead, progress relies on the parallel maturation of vehicle electrification, alternative bio-fuels, circular material economies and green factory manufacturing.

The transport sector was highlighted as a focal point for reinforcing India's domestic energy security and reducing its macro-economic reliance on volatile fuel imports. Government and industry speakers mapped out a multi-fuel ecosystem designed to transition the country toward localised and clean energy pathways.

While the three-wheeler category is experiencing a fast transition driven by favourable unit economics, panellists called for accelerated adoption curves within the four-wheeler and public transport segments, specifically via electric buses.

India is actively advancing a wide range of low-carbon fuel alternatives, including biofuels, ethanol and isobutanol blends, flex-fuel configurations, compressed biogas (CBG), liquefied natural gas (LNG/CNG), green hydrogen and synthetic fuels.

Technical pathways involving coal gasification-based fuels are being structurally explored to further diversify domestic supply lines.

Experts noted that tech adoption cannot be driven by immediate costs alone; long-term scale will naturally deflate pricing over the next decade. Crucially, vehicle deployment and localised charging/refuelling networks must expand in tandem.

The conference was segmented into three core technical tracks, evaluating circularity, fuel diversification and manufacturing supply chains.

The first thematic session, ‘Circularity in the Automotive Sector: From Materials to End-of-Life Vehicles,’ focused on circular economy practices across the automotive value chain, including sustainable sourcing, recycling, resource efficiency, and end-of-life vehicle management was addressed by Guest of Honour Dr. Virender Sharma, Member Technical (Additional Secretary to Government of India level), Commission for Air Quality management in National Capital Region and Adjoining Areas. The session was chaired by M S Anand Kumar, Chairperson, SIAM Recycling & Material Groups, and Assistant Vice-President, TVS Motor Company, the session included presentations by Dr. Rashi Gupta, Founder & Managing Director, Vision Mechatronics; Bhuwan Purohit, Executive Director, Rubamin; Dr Swati Singh, Head of Regional Standards, South Asia (UL Standards and Engagements) and Abhijit Sen Roy, General Manager (TS), Indian Oil Corporation Ltd. (IOCL), who shared perspectives on sustainable technologies, EPR frameworks, and circular resource recovery.

The session also included a panel discussion on ‘Building a Circular Automotive Value Chain,’ moderated by Sandeep Kumar Mohanty, Partner, PwC.

The second thematic session, ‘Alternate Fuels for Sustainable Mobility – Diversifying the Energy Mix: Pathways for Low-Carbon Fuels,’ focused on the role of alternate fuels in reducing transport emissions and supporting India’s mobility transition. Chaired by Vikram Gulati, Country Head & EVP – Corporate Affairs & Governance, Toyota Kirloskar Motor, the session included presentations by Dr. Santanu Gupta, Director Technical, Global Biofuels Alliance; Sumit Sarkar, Chief Executive Officer, Chhattisgarh Biofuel Development Authority and Santosh Gurunath, Chief Executive Officer, Umagine Hydrogen, who shared insights on global biofuel trends, agricultural residue-based fuels being developed, and elaborated on hydrogen as a pathway for low-carbon mobility.

A panel discussion on ‘Multi-Fuel Pathways to Achieve Sustainable Mobility,’ moderated by Atul Jairaj, Partner, Deloitte India, brought together Suruchi Bhadwal, TERI and Vedang Pittie, Harinagar Sugar Mills, along with the presenters and session chair. The discussion focused on the role of biofuels, hydrogen and other low-carbon fuels and the policy and infrastructure support needed to accelerate their adoption.

The third thematic session, ‘Decarbonising the Automotive Value Chain: Green Manufacturing and Sustainable Supply Chains,’ chaired by Suneet Deshmukh, Head Operations Excellence, Hero MotoCorp, discussed strategies for reducing emissions across manufacturing operations and supplychain.

The session included presentations by Chaitanya Kanuri, Director E-Mobility, WRI India; Mayur Karmarkar, Managing Director, International Copper Association India and Mohit Jauhari, Head SCM, Shriram Pistons and Rings, who shared insights on copper, critical minerals, rare earth magnets and elaborated on sustainable supply chain practices.

The session also included a panel discussion on ‘Accelerating the Transition to a Low-Carbon Automotive Value Chain,’ moderated by Pratik Shah, Partner, EY Parthenon. The panel brought together Parag Sharma, Stellantis; Lt Col Monish Ahuja (Retd), Punjab Renewable Energy Systems along with the session presenters. They discussed green manufacturing, renewable energy, sustainable sourcing and supply chain decarbonisation.

To actively support India's target of carbon neutrality by 2070 and the Viksit Bharat vision by 2047, SIAM formalized its long-term actions under six targeted environmental and structural initiatives – विद्युतीकरण (Electrification), जैविक पहल (Bio-Initiatives), चक्रीयता (Circularity), गैस गतिशीलता (Gas Mobility), हरित हाइड्रोजन (Green Hydrogen) and सुरक्षित सफर (Safe Journey).

Tarun Kapoor, Advisor to the Prime Minister of India, stated during the opening session, "The transport sector must play a central role in strengthening India's energy security. We cannot continue to depend on large-scale fuel imports and, over time, must move towards fuels that can be produced within the country. While three-wheelers are ready for rapid electrification, we need much faster adoption in the four-wheeler segment as well."

Prashant K. Banerjee, Executive Director, SIAM, added, "We are living through a time of unprecedented challenges, from climate change and air pollution to energy security concerns. But every challenge also creates an opportunity and as the world's largest market for two-wheelers and three-wheelers, India has already demonstrated remarkable progress in sustainable mobility."

Green SM, the electric vehicle ride-hailing service company of Vietnamese conglomerate Vingroup has officially launched Green SM Limo service in New Delhi, marking its strategic entry into the Indian market.

India represents the company's fifth international territory, following active deployments in Vietnam, Laos, Indonesia and the Philippines.

The inauguration ceremony was attended by prominent dignitaries, including Rao Narbir Singh, Minister for Industries & Commerce, Environment, Forest & Wildlife, Foreign Cooperation, and Sainik & Ardh Sainik Welfare for the Government of Haryana and Dr. Virinder Sharma, Vice-President of the Commission for Air Quality Management. Representatives from the Embassy of Vietnam in India and various strategic industrial sectors were also present.

In its initial phase, Green SM Limo will operate exclusively within key areas of the Delhi National Capital Region (NCR), with plans to scale service coverage incrementally in response to consumer demand. The service features a specialised, single-model electric fleet tailored for premium passenger transport.

The fleet consists entirely of the VinFast Limo Green, a fully electric, 7-seater SUV that produces zero tailpipe emissions. To optimise passenger comfort during business commutes, family trips, or airport transfers, each vehicle is stocked with complimentary drinking water, wet tissues and essential travel amenities. Vehicles are integrated with a proprietary Secure-to-Safe system, which features interior and exterior monitoring cameras, AI-powered driving assists and dedicated emergency support buttons accessible by both the driver and passengers.

Operating under the core service commitment of ‘Ride 5 Star,’ Green SM Limo utilises a team of professionally trained ‘Green Drivers’ instructed in specialised electric vehicle mechanics, defensive driving and hospitality workflows.

Passengers within the active Delhi NCR zones can secure rides through three primary channels:

• The Green SM mobile application (available on the iOS App Store and Google Play).
• A dedicated telephone service hotline.
• Direct street-hailing within valid Green SM operating parameters.

To celebrate its market entry, Green SM is offering a 50 percent discount (up to INR 250) for all rides booked via its official app from 5 June to 11 June 2026.

Coinciding with the brand launch, Green SM inducted five local Indian partners spanning the mobility, travel, technology and service sectors into its Green Alliance Frontier. This global platform is designed to connect eco-conscious commercial enterprises to encourage collaborative cross-market innovation and accelerate localized green transformations.

Nguyen Van Thanh, Global CEO, GSM, said, “India is one of the most important mobility markets in the world. Its scale, rapid growth, and strong spirit of innovation are opening up many opportunities for the future of green transportation. We come to India with respect for the market, confidence in its long-term potential, and a commitment to working closely with local partners. Green SM hopes to bring high-quality fully electric rides to customers, while contributing to broader access to safe, reliable, and more sustainable mobility choices."

Toyota Kirloskar Motor, a leading passenger vehicle manufacturer, has announced a national partnership with Animation Express for the multi-city Anime India 2026 convention series.

The collaboration is designed to deepen the automaker's brand engagement with Gen Z and millennial demographics by blending automotive showcases with contemporary pop culture.

The partnership will officially kick off with the Delhi edition of the convention, scheduled for 6-7 June 2026, at Yashobhoomi in New Delhi. As one of the country's leading ticketed anime conventions – having drawn over 60,000 attendees across its last two iterations – the event celebrates licensed anime, manga, gaming and Japanese pop culture.

The event will see a live performance by popular Japanese musical artist Yurika and a highly anticipated first appearance in India by veteran Japanese voice actor Inoue Kazuhiko, globally recognised for voicing the character Kakashi in the hit anime series Naruto.

Toyota Kirloskar Motor will deploy an immersive on-ground experiential showcase featuring interactive customer touchpoints and themed vehicle wraps. Toyota will exhibit three of its popular passenger models across the venue: Urban Cruiser Hyryder (Flagship Booth), Toyota Glanza and Urban Cruiser Taisor.

To directly appeal to convention attendees, all three display cars will feature custom exterior wraps inspired by the globally renowned anime franchise 'Attack on Titan'. The flagship Hyryder booth will also drive community engagement through gamified activations, including a stamp rally, a spin-the-wheel game, and a live quiz competition.

Sabari Manohar, Executive Vice-President of Sales-Service-Used Car Business at Toyota Kirloskar Motor, said, “Anime India offers a unique platform to connect with a highly passionate community that strongly identifies with creativity, self-expression and contemporary pop culture. As an innovative, new-age format, Anime India presents an exciting opportunity to engage meaningfully with the Gen Z audiences. Through this partnership, we aim to further position Toyota as an exciting brand that resonates with younger customers by creating engaging and culturally relevant experiences."