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)

Ultraviolette has entered the record books as the first motorcycle manufacturer from India to tackle and finish the gruelling Isle of Man TT Mountain Circuit. This world-famous course, stretching 37.72 miles (60.72 kilometres), is widely considered one of the most punishing tracks in global motorsports.

The feat occurred on 6 June 2026, when several F77 MACH 2 machines from Ultraviolette successfully navigated the full 60.72 kilometres of demanding tarmac. A trio of skilled riders – former TT winner James Hillier, actor and biking enthusiast Ranvijay Singha and national champion Abhishek Vasudev – piloted the electric motorcycles. Official recognition for the accomplishment has come from both the Asia Books of Records and India Books of Records.

This success represents a turning point for the nation’s expanding electric vehicle sector. The F77’s ability to master one of motorcycling’s most revered circuits highlights the advanced performance potential of Indian-designed electric motorcycles on an international stage. Ultraviolette views the achievement as a major step in its ongoing effort to redefine electric mobility and position India as a frontrunner in future transportation solutions.

Narayan Subramaniam, CEO and Co-Founder, Ultraviolette, said, "Completing a lap of the Isle of Man TT Mountain Course with the F77s is a significant milestone for Ultraviolette and a proud moment for Indian design and engineering. It demonstrates how far electric motorcycle technology has evolved and reinforces our belief that high-performance electric mobility can compete on the world's most demanding stages.

“For decades, the Isle of Man TT has been where motorcycle technology is tested, proven and celebrated. The TT Zero class was ahead of its time and showed the world that electric motorcycles could be more than an alternative; that they could be genuinely exciting, competitive and capable. Today, electric motorcycles have reached an entirely new level of capability and we would love to see electric racing return to the Isle of Man TT and continue driving the next chapter of motorcycle innovation."

Spiro, an electric mobility company operating in Africa, has announced the appointment of Anant Badjatya as its new Group Chief Executive Officer.

The appointment follows a USD 215 million financing round for the company. Badjatya joins the business from Indofast Energy, a joint venture between IndianOil and SUN Mobility, where he oversaw the development of a network comprising more than 1,800 battery-swapping stations serving nearly 90,000 vehicles daily.

In his new role, Badjatya will manage the group's initiatives across battery swapping, leasing, logistics, energy, and vehicle manufacturing. Concurrently, Kaushik Burman will remain with the company as CEO of Mobility to manage the fleet across Spiro's seven existing markets.

Under Badjatya's management, Spiro plans to expand its technology hubs in India. The tech centre in Pune, which focuses on electric vehicle powertrain design and battery management systems, currently employs more than 100 people and is scheduled for expansion. The Bengaluru hub, which has a staff of over 50 people, will focus on the development of Internet of Things (IoT) cloud platforms and support research and development localisation initiatives in Kenya and Nigeria.

Gagan Gupta, Founder and Chairman, Spiro, said, "As Spiro is accelerating on its mission to transform mobility across Africa through clean, affordable and accessible electric transportation solutions, Anant will consolidate the Group’s strategic initiatives and guide the company through its next chapter of growth and execution in mobility, energy and tech.”

Anant Badjatya added, "Africa represents the most exciting frontier for electric mobility. Spiro has built a unique platform and is exceptionally well positioned to accelerate the transition to cleaner and more accessible mobility across the continent. I look forward to working with our teams, partners and stakeholders to drive the next phase of growth and impact."

TVS Motor Company (TVSM), part of TVS VENU, partnered with the UN Global Compact Network India to host a World Environment Day 2026 workshop at the TVS Institute for Quality and Leadership in Anekal, Bengaluru. The event – held under the theme ‘Inspired by Nature. For Climate. For Our Future’ – also saw the release of a white paper titled ‘Nature Capital as a Strategic Business Imperative in India’, jointly developed with PwC and TERI School of Advanced Studies, focusing on ecosystem services and nature-related risk management.

Attendees included Karnataka Minister for Rural Development and Panchayat Raj, Eshwar B Khandre; UN Global Compact Network India’s Ratnesh Jha; TERI’s Dr Vibha Dhawan and senior sustainability leaders from industry, academia and civil society.

TVS also launched its inaugural TNFD report, ‘Mobility in Harmony with Nature’, becoming one of the first Indian automotive firms to align with Taskforce on Nature-related Financial Disclosures recommendations. The framework helps assess nature-related dependencies, risks and opportunities amid growing water stress and biodiversity loss.

Three TVS Indian facilities are Net Water Positive and Zero Waste to Landfill, with Hosur holding GreenCo Platinum certification. Six products earned the GreenPro Ecolabel. With nearly 97 percent renewable energy in Indian operations, TVS is advancing circular economy initiatives and has established a Registered Vehicle Scrapping Facility for responsible dismantling and recycling.

Thakur Pherwani, Chief Sustainability Officer, TVS Motor Company, said, "Nature is central to economic resilience, community well-being and the future of mobility. At TVS Motor Company, sustainability is embedded into how we think about products, operations, supply chains and partnerships. The release of our inaugural Task Force on Nature Related Disclosure (TNFD)-aligned report is an important step in assessing our nature-related dependencies, impacts, risks and opportunities with greater discipline. Through the white paper and today's workshop, we hope to support a more informed conversation on how Indian businesses can protect natural capital while enabling long-term growth and value creation."

Ratnesh Jha, Executive Director, UN Global Compact Network India, said, "The conversation around sustainability is rapidly evolving from compliance to competitiveness. Through initiatives such as this workshop, we are witnessing businesses recognise that biodiversity, ecosystem health and climate resilience are directly linked to long-term enterprise value. As UN Global Compact Network India completes 25 years of advancing responsible business practices, collaborations like these reaffirm the importance of collective action in shaping India’s sustainable future.”

The Supreme Court of India has issued an order affirming the protection of the red appearance and packaging used by Exide Industries for its automotive batteries.

The legal dispute commenced after Amara Raja began manufacturing and selling automobile batteries under the brand name Elito using red colouring and packaging, whilst promoting the products across its website and social media channels. Exide initiated legal proceedings on the grounds that the product and packaging resembled its own long-established trade dress.

The Supreme Court affirmed the interim orders previously passed by the Calcutta High Court. The directive requires Amara Raja to cease the manufacturing and sale of red Elito batteries to its channel partners, and restrains the company from promoting the items on media platforms.

Prior to this decision, a Single Bench of the Calcutta High Court had issued an interim order restraining Amara Raja from manufacturing or selling batteries in red or in packaging resembling Exide's products, a position subsequently upheld by a Division Bench of the High Court.

The Supreme Court order permits Amara Raja’s channel partners to liquidate only the red Elito products that were already present in the market and manufactured prior to the Division Bench order dated 2 April 2026. The main lawsuit remains pending.

"For generations, customers have associated Exide's red-coloured batteries and packaging with quality, reliability, and trust. The Supreme Court's order reinforces the value of our intellectual property and safeguards the market identity that Exide has built over decades," said Exide in a statement.