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)

The Government of the National Capital Territory of Delhi (GNCTD) has granted approval to the Delhi Electric Vehicle Policy 2026–2030, a comprehensive four-year framework designed to significantly boost electric vehicle adoption, combat air pollution, and establish a robust ecosystem for sustainable mobility in the capital.

Interestingly, the Delhi government has approved a humongous budget outlay of INR 150 billion towards supporting the transition towards green vehicles and enabling the necessary electric vehicle ecosystem.

The policy responds to the Supreme Court’s directives and recent findings by the Commission for Air Quality Management (CAQM), wherein vehicular emissions remain a leading contributor to Delhi’s poor air quality, with two-wheelers accounting for approximately 67 percent of the vehicle stock and high-utilisation segments such as three-wheelers and light commercial goods vehicles adding disproportionately to pollution.

Key highlights of the approved policy include generous purchase incentives that taper over the years. For electric two-wheelers (ex-factory price up to INR 225,000), buyers will receive INR 10,000 per kWh (capped at INR 30,000) in the first year, reducing to INR 6,600 per kWh (max INR 20,000) in year two and INR 3,300 per kWh (max INR 10,000) in year three.

Electric three-wheeler auto-rickshaws (L5M) will attract incentives of INR 50,000, INR 40,000 and INR 30,000 respectively across the three years, with additional support for replacing old CNG vehicles. Electric N1 goods vehicles receive INR 100,000 in year one, INR 75,000 in year two and INR 50,000 in year three.

Substantial scrapping incentives have also been introduced to accelerate the phase-out of older BS-IV and below vehicles. These range from INR 10,000 for two-wheelers and INR 25,000 for three-wheelers to INR 100,000 for eligible electric cars (ex-factory price up to INR 3 million, limited to the first 100,000 applicants) and INR 50,000 for N1 trucks, provided replacement occurs within six months of scrapping.

All electric vehicles registered in Delhi during the policy period will enjoy 100 percent exemption from road tax and registration fees, with a 50 percent exemption for strong hybrid electric vehicles under INR 3 million and no exemption for higher-priced electric cars. Incentives will be disbursed via direct benefit transfer, with eligibility aligned to the central PM E-DRIVE scheme.

On the infrastructure front, Delhi Transco (DTL) has been designated as the nodal agency for expanding public and community charging stations as well as battery swapping facilities. The policy mandates OEMs to install at least one public charging station per dealership and emphasises grid readiness, single-window clearances, and integration with central government schemes. A dedicated EV Fund will support implementation, backed by an Apex Committee chaired by the Delhi Transport Minister.

Electrification mandates form a core pillar of the policy. From 1 January 2027, only electric three-wheelers will be permitted for new registration, followed by two-wheelers from 1 April 2028. School bus fleets must achieve progressive electric shares (10 percent by end of year two, 20 percent by year three, and 30 percent by March 2030). Government fleets, hired vehicles and new intra-state buses will transition to electric, while fleet aggregators face restrictions on adding new ICE vehicles.

Additional measures focus on battery recycling under the Battery Waste Management Rules, digital integration for all processes, and institutional coordination across departments. The policy remains in force until 31 March 2030, unless extended or modified.

This approval marks a decisive step by the Delhi government towards cleaner air and a sustainable transport future, balancing incentives, mandates, and infrastructure development to drive meaningful emission reductions in the National Capital.

The Royal Academy of Engineering, the United Kingdom's national academy of engineering, is set to honour three engineers for their breakthrough innovations in different fields with The Princess Royal Silver Medal in London on 8 July 2026.

The medal celebrates contributions to UK engineering by individuals at the early to mid-career stage that result in market exploitation. The recipients for 2026 are Dr Ian Campbell, Co-Founder of Breathe Battery Technologies, Dr Liucheng Guo, Co-Founder & Chief Technical Officer of TG0 and Professor Robert Thomson, Professor of Photonics at Heriot-Watt University.

Luke Logan, Chair of the Academy’s Awards Committee, said, “This year’s winners of The Princess Royal Silver Medal have each pushed the boundaries of engineering. Through their research and innovative ideas, they have supported the UK in being a leader in engineering and sustainability, making significant contributions to our national economy through inspiring entrepreneurship and collaboration.”

Dr Campbell Co-Founded Breathe Battery Technologies to improve battery charging processes. The company developed software that simulates battery function to provide insight into electrochemistry, enabling manufacturers to optimise charging and design without hardware modifications.

“I am deeply honoured and humbled to receive the Princess Royal Silver Medal. Climate change and air pollution continue to threaten health and livelihoods worldwide. By combining battery physics simulation with materials libraries built in industrial-scale labs, we can screen millions of potential designs and rapidly optimise the most promising candidates using advanced software. This capability is helping to bring cleaner, quieter, healthier and more affordable cars, trucks and energy storage systems to market faster,” said Dr Campbell.

Founded in 2019 as a spin-out from Imperial College London, Breathe Battery Technologies has now grown to operate the largest battery testing facility in London and has raised more than USD 33 million in funding. It counts the likes of Volvo Cars, OPPO and Polestar amongst its early backers.

Professor Ricardo Fernando Martinez-Botas, Head of the Department of Mechanical Engineering, Imperial College London, said, “Ian’s success in commercialising world-class research from Imperial College London exemplifies how UK academic excellence can translate into real-world impact. His contributions are not only advancing the UK’s position at the forefront of the international battery technology race but helping to shape the future of cleaner transport.”

Dr Guo developed ‘AI for Sensing’ technology for electronic products, which replaces mechanical buttons and sensors with touch-sensitive surfaces powered by embedded AI. The system detects pressure, location, direction and movement of touch.

“I am deeply honoured to receive the Princess Royal Silver Medal. This recognition reflects not only my own journey, but also the dedication of my co-founder Ming, the TG0 team, investors, collaborators and mentors. I believe engineering has a vital role to play in shaping a resilient and sustainable future, creating technologies that are not only intelligent, but also accessible, energy-efficient and beneficial to society,” said Dr Guo.

Professor Robert Thomson is recognised for his work in photonics, specifically the use of lasers and optical fibres to capture information from space.

Toyota Kirloskar Motor (TKM), one of the leading passenger vehicle manufacturers, has completed its 37th iCARE (I, Community Action to Reach Everyone) initiative. The project took place at the Government High School in Doddaghollarahatti, Karnataka, to mark National Reading Day 2026.

The event saw 250 volunteers, including TKM employees and their family members, participating in the event. The group refurbished the school library by cataloguing books, assembling furniture and installing signage. Volunteers also contributed books to the library collection.

The initiative aligns with the National Education Policy 2020, which emphasises the role of libraries as learning spaces.

Vikram Gulati, Executive Vice-President, Corporate Affairs and Governance, Toyota Kirloskar Motor, said, "At Toyota, we believe that every child deserves access to spaces that inspire learning and curiosity. A library is often the first place where students discover new ideas, perspectives and opportunities beyond the classroom. Through the 37th iCARE initiative, we have worked to create a more welcoming and engaging environment that encourages students to read, explore and learn. By strengthening access to books and learning resources, we hope to support students in building knowledge, confidence and aspirations that can help shape their future."

Launched in 2017, the iCARE program has involved over 4,500 volunteers across 37 programs, impacting more than 68,800 people. Toyota Kirloskar Motor conducts these activities under its corporate social responsibility (CSR) pillars: education, health and hygiene, environment, skill development, road safety and disaster management.

Maruti Suzuki India, the country’s largest carmaker, has onboarded five startups – MiniMines, Easework AI, Sarvam AI, Siftly and CodeMate AI, to develop solutions for business operations and customer experience.

The startups were chosen as winners of the fifth cohort of the Maruti Suzuki Incubation Program (MSIP), which is run in partnership with the NSRCEL incubation hub at IIM Bangalore.

Hisashi Takeuchi, Managing Director & CEO, Maruti Suzuki India, said, “At Maruti Suzuki, we have been actively working with startups to co-create innovative and practical solutions to address real business challenges. We are delighted to collaborate with five more startups. One of these startups, MiniMines, will support us in safely recycling end-of-life batteries, while the other four startups will help improve customer engagement and drive efficiency across our business operations.”

Startup	Solution
MiniMines	Recycling of Lithium-ion batteries and extraction of materials
Easework AI	Workflow automation of procurement process for consumables using AI
Sarvam AI	AI agents with multilingual support for customer interaction
Siftly	Use of AI for brand visibility
CodeMate AI	Use of AI for development of software applications

Maruti Suzuki has developed programs to support startups in solving business problems. Over seven years, the company has screened 7,400 startups, engaged with 250 and partnered with 38. These programs include the Maruti Suzuki Accelerator, the Maruti Suzuki Incubation Program, the Mobility Challenge, Nurture and FundRays.