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)

Envalior India Pvt. Ltd. has launched a specialised training hub focused on electric vehicle technology at MM Polytechnic in Pune, marking a significant step in aligning vocational education with the demands of the burgeoning EV sector. The Envalior Centre of Excellence, a product of the company’s CSR initiatives in partnership with the BroadArks Foundation, is intended to serve as a practical workshop where students can transition from theoretical knowledge to applied technical competence.

The facility was formally inaugurated by Christopher Stillings, Vice President –R&D, in the presence of Krijn Dijkstra, Nileshkumar Kukalyekar, Uday Shetty, Susmita Mishra, Hema Rani, Sainath Vaidya and Aniket Nirwan of Envalior, MM Polytechnic leadership and other dignitaries. By embedding this centre within a technical campus, the programme seeks to immerse learners in the realities of EV maintenance and repair, covering not just mechanical functions but also the intricate electrical and software-driven systems that define modern vehicles.

With an annual capacity to reach roughly 250 learners, the centre will cater to students from ITI and polytechnic backgrounds across multiple engineering streams. The coursework is divided into two progressive phases, starting with a foundational module that introduces participants to basic EV architecture, battery safety and routine service procedures. An advanced tier follows, offering deeper instruction on battery management systems, thermal controls, high-voltage safety protocols, motor controllers and complex diagnostic methods.

Beyond traditional lectures, the training environment incorporates interactive lab sessions with real vehicle components, diagnostic tools and industry-relevant projects, ensuring that participants acquire both safety awareness and problem-solving agility. The overarching goal is to produce graduates who are not merely familiar with EV theory but are confident in executing hands-on repairs and system evaluations. Through this scalable framework, Envalior is actively working to narrow the skills gap in India’s automotive sector, creating a direct pipeline of capable talent for the evolving mobility landscape.

Nileshkumar Kukalyekar, Business Director – South Asia, Middle East & Africa, Envalior, said, “The transition to electric mobility is creating a fundamental shift in the skills expected from the automotive workforce. For us, this Centre of Excellence is about ensuring that technical education keeps pace with that change. By giving students the opportunity to work directly with EV systems, understand advanced diagnostics and build capabilities through structured, certified training, we are helping create a stronger bridge between what young technicians learn and what the industry will increasingly expect from them. We see this as an investment not only in individual careers but in the technical talent that will support India’s mobility transition in the years ahead.”

Christophe Stillings, Vice President – R&D, Envalior, said, "At Envalior, we believe the future of mobility depends on developing industry-ready talent today. Through the Centre of Excellence, students will gain hands-on exposure to EV technologies, helping bridge the gap between academic learning and real-world industry requirements. By bringing together academia and industry expertise, we aim to equip the next generation of engineers with the practical skills, confidence and innovation mindset needed to succeed in a rapidly evolving automotive landscape."

Tier 1 automotive supplier Schaeffler India has appointed Amit Bhalerao as its Chief Operating Officer, effective 10 August 2026.

In his new role, Bhalerao will oversee the company's manufacturing operations across India. His responsibilities include directing manufacturing strategy, operational performance, digitalisation projects and capability development, as well as managing local production initiatives across the firm's plant network.

Bhalerao will join Schaeffler India's Executive Leadership Team, collaborating with divisional heads to manage the company's operational footprint.

Harsha Kadam, Managing Director and CEO, Schaeffler India, said, "India continues to be a strategic growth market for Schaeffler, and strengthening our manufacturing and operations capabilities is central to our journey as the leading Motion Technology Company. Amit brings extensive experience in leading complex manufacturing operations, driving operational excellence and building high-performing teams. His leadership will further enhance our manufacturing competitiveness, customer focus and innovation capabilities as we continue delivering greater value to our customers and stakeholders. We wish Amit the very best and many successes in his journey at Schaeffler in India."

Bhalerao comes with 23 years of management experience in manufacturing, operations, lean transformation, quality assurance and supply chain management. Before joining Schaeffler India, he held the positions of Managing Director and Vice-President of Operations at Kelvion India, where he managed operations, technology transfer and capacity expansion projects. He has also held leadership positions at Cummins, Eaton and Sterlite Technologies.

Godrej Enterprises Group's Material Handling Equipment (MHE) business has initiated operations at a new, state-of-the-art manufacturing plant located in Khalapur, Maharashtra. This development represents a major step forward in bolstering domestic production capabilities and supporting the anticipated expansion of India's logistics, warehousing and supply chain sectors.

Situated within the expansive 360-acre Naoroji Godrej Industrial Park, the new plant is strategically designed to meet the escalating demands of diverse industries, including manufacturing, e-commerce, pharmaceuticals and automotive. The facility boasts an initial annual production capacity of 6,000 units, with the flexibility to scale up to 15,000 units to align with future market requirements.

The plant's advantageous location near critical transport arteries like Nhava Sheva Port and the forthcoming Navi Mumbai International Airport positions it effectively for both domestic distribution and international exports. Its production portfolio includes a comprehensive range of solutions, notably articulated trucks, a segment where Godrej maintains a unique position as the sole Indian producer. These products are currently exported to over 40 nations.

Engineered as a forward-looking manufacturing hub, the facility incorporates advanced Industry 4.0 technologies, including robotic welding and smart quality assurance systems. Operational sustainability is a core focus, achieved through energy-efficient processes and automated systems, a commitment recently recognised with an EcoVadis Gold Medal. This new facility underscores the group's dedication to innovation-led manufacturing and its role in advancing India's status as a global manufacturing centre.

Anil Lingayat, Business Head, Material Handling Equipment Business, Godrej Enterprises Group, said, "The commencement of operations at our Khalapur facility marks an important milestone in strengthening India's material handling manufacturing ecosystem. The facility combines advanced automation, digital manufacturing and indigenous engineering to deliver world-class solutions for a rapidly evolving logistics landscape. As India strengthens its manufacturing and logistics capabilities, efficient movement of goods will be critical to economic growth. Through this facility, we are not just expanding capacity but helping build stronger supply chains, supporting self-reliance and contributing to national priorities such as Make in India, PM Gati Shakti and Viksit Bharat."

Moove, a mobility fintech – revenue-based vehicle financing and financial services to mobility entrepreneurs globally, has raised USD 250 million in a Series C funding round, bringing its valuation to USD 2.1 billion. The round was led by Mubadala Investment Company and co-led by Woven Capital, Toyota’s Growth Fund and Ion Pacific.

The funding round also included investments from BlueCrest Capital Management, Sona Asset Management and The Raptor Group, joining existing investors such as BlackRock, MUFG, Franklin Templeton, Uber, Left Lane, Silverbacks Holdings, Square Associates, The Latest Ventures, Endeavor Catalyst and the Ontario Power Generation Pension Plan.

The company plans to use the capital to expand its autonomous vehicle business, fund fleet ownership and construct ‘Nests’ depot infrastructure for charging, servicing and maintaining autonomous vehicles. The capital will also support new market launches globally. Moove projects its autonomous vehicle workforce will grow from approximately 150 employees to around 500 by the end of the year.

Since its launch in 2020, Moove has grown to employ 3,300 people across 29 cities in 13 countries, operating approximately 42,000 vehicles and reaching USD 420 million in annualised recurring revenue. The company has expanded through organic operations and acquisitions, including Kovi in Brazil and Tokyo Taxi in Japan. In the autonomous vehicle sector, Moove works as a third-party fleet operator in partnership with Waymo, running operations in Phoenix and Miami, with planned expansion to London.

Ladi Delano, Co-Founder, Co-CEO and Advisory Board Chairman, Moove, said, “Every major technology revolution becomes an infrastructure race. The internet required data centres. AI required compute. Autonomy requires fleets, charging, maintenance, data systems and 24/7 operations in every city - and that is what Moove is building. In our view, as autonomy scales, infrastructure ownership and operations will define the category leaders. We are building to be one of them. We started in Lagos with a simple insight: mobility demand is abundant, but supply cannot scale unless capital, technology and operations move together. Five years later, that insight has evolved into a global platform. Today, we are focused on building the platform that will redefine mobility and enable billions of autonomous journeys worldwide. From our anchor in the UAE, and backed by long-term strategic capital, Moove now has the platform to help take autonomy from breakthrough technology to everyday transportation. This is not a departure from our mission, it is the fullest expression of it.”

Ali Eid AlMheiri, Executive Director of Diversified Assets, UAE Investments Platform at Mubadala, said, “As autonomous mobility moves from innovation to scaled deployment, the infrastructure supporting it becomes increasingly important. Moove is building an integrated operating platform that combines fleet ownership, operational capability, and technology to support the next phase of growth in autonomous mobility. This is particularly important for the UAE. Mubadala is investing in enabling infrastructure and scalable platforms like Moove that support economic diversification and strengthen the UAE’s role as a hub for advanced technologies. Since Mubadala’s initial investment three years ago, Moove has been a great partner and we are glad to continue partnering with Moove in its next phase of growth.”

Betty Lee, Principal at Woven Capital, said, "Moove has demonstrated an exceptional ability to execute across markets, building a global platform across traditional and autonomous vehicle fleets. The next wave of mobility is an infrastructure problem as much as a software one, and Moove is building the foundational layer to solve it. Few companies at this stage have proven they can move with the speed and operational excellence that Moove has demonstrated across so many markets. We’re excited to be part of what they are building and help accelerate their path as they scale."

Michael Joseph, Co-CEO & Co-Founder, Ion Pacific, said, “We’ve partnered with the Moove team for more than five years, and their execution has consistently impressed us. As autonomous mobility moves from possibility to reality, Moove is building a critical infrastructure layer for the sector - one that is complex, adaptive and essential to scaling AVs. We’re excited to be part of that journey.”