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)

Toyota Kirloskar Motor, one of the leading passenger vehicle manufacturers, has announced that 100 members of its workforce will travel to Japan to participate in the Global Skill-Up Training (GST) program at Toyota Motor Corporation.

The initiative aligns with the Government of India’s Skill India Mission and the Technical Intern Training Program (TITP), a framework between the Governments of India and Japan for skill development and talent exchange.

The Global Skill-Up Training program in Japan is an 11-month program, combining classroom sessions with on-the-job training. It focuses on Toyota’s core principles, while also preparing trainees with Japanese language, culture and civic responsibility to prepare for global integration.

The automaker, an NSDC-approved Sending Organisation, has facilitated the overseas training of over 1,000 youth to countries including Japan, Jordan, Qatar and Slovakia.

G Shankara, Executive Vice-President, Finance and Administration, Toyota Kirloskar Motor, said, “We at Toyota Kirloskar Motor are deeply committed to nurturing globally competitive talent from India. The Global Skill Up Training Program is more than just a learning opportunity; it is a journey to experience excellence, discipline, innovation, and respect on a global stage. Through this initiative, we aim to empower our youth with world class technical expertise and the values that define Toyota’s culture, while contributing to the Government of India’s Skill India vision. Together, we aspire to make India a global hub for people, solutions, and automobiles, and together we will make that vision a reality.”

Dr. Sharanaprakash Rudrappa Patil, Minister for Skill Development, Government of Karnataka, said, “We are proud to see our youth getting access to this global opportunity with Toyota. This program aligns strongly with our vision to position Karnataka as a hub for advanced skills while empowering rural talent to access world-class career opportunities.”

Sonal Mishra, Additional Secretary, Ministry of Skill Development & Entrepreneurship (MSDE), Government of India, said, “The collaboration between MSDE and Toyota under the TITP framework represents India’s growing role as a trusted global source of highly skilled professionals. This international apprenticeship opportunity will accelerate India’s contribution to global value chains and enable our youth to build future-ready careers.”

Till date, Toyota Kirloskar Motor has trained and empowered over 140,000 youth across India through its multi-tier skilling initiatives, including the Toyota Technical Training Institute (TTTI) model.

Uber for Business, the enterprise division of Uber, has appointed Rituraj Chaturmohta as the Senior Country Manager for India & South Asia.

In his new role, Chaturmohta will lead the division’s growth strategy, focusing on strengthening partnerships with organisations, enhancing enterprise mobility solutions and driving innovation in corporate travel and employee transportation.

Chaturmohta joins Uber with experience in marketplace and platform businesses. He previously served as Head of Sales and Business Development at Airbnb.

Eric Lee, Regional General Manager and Head of Uber for Business - APAC, said, “We are delighted to have Rituraj join our leadership team to drive Uber for Business’ growth and partnerships in India and South Asia. His experience in building and scaling platform businesses, combined with his understanding of the Indian market will be instrumental in strengthening our enterprise offering.”

Rituraj Chaturmohta, Senior Country Manager, Uber for Business, India and South Asia, said, “I am thrilled to join Uber for Business to lead India and South Asia, one of Uber’s most dynamic growth markets. Uber for Business is reimagining how businesses move - with scale, sustainability, and customer centricity at the core. My focus is to deepen Uber’s relationships with our business clients, build tailored mobility solutions that drive measurable ROI, and make Uber for Business a growth partner for every company operating in this region.”

Uber for Business manages travel, meals, and commute programmes for over 200,000 organisations worldwide. In India, the division currently assists over 8,000 organisations with solutions for business travel, daily commutesand employee shift transportation.

The German Association of the Automotive Industry (VDA) has assessed the draft of the 2030 Charging Infrastructure Master Plan, calling for a coherent, cross-departmental 'Overall Charging Strategy' to accelerate the expansion of charging infrastructure.

Hildegard Muller, President, VDA, said, “In order to further accelerate the expansion of charging infrastructure for vehicles, increase user-friendliness and ensure charging prices, a cross-departmental 'Overall Charging Strategy' is necessary. Against this background, the VDA fundamentally assesses the draft of the 2030 Charging Infrastructure Master Plan as good.”

The VDA supports the draft's proposals to increase e-mobility through streamlined approval procedures, grid expansion, charging prices through transparency and a focus on charging infrastructure for trucks and buses on highways and at depots.

However, the association outlined areas requiring work:

• Multi-Unit Buildings: The VDA demands that the EU Building Directive requirements for charging infrastructure at parking spaces be implemented into law without delay. It stressed that the pooling of charging points across locations, as mentioned in the draft, would weaken EU requirements and must be rejected.
• Commercial Vehicles: While welcoming the commitment to expand the charging network for trucks, the VDA noted that the still inadequate availability of charging points represents an obstacle to the ramp-up of commercial vehicles and buses. It also stated that the draft fails to address the segment of light vehicles, demanding measures to support the development of charging infrastructure in urban areas.
• Power Grids and Taxation: The VDA highlighted that Germany's power grids are not equipped for the energy transition. It called for the expansion to be oriented towards demand and for a uniform, digital process for grid connection applications. Furthermore, the VDA demands that electricity tax, network charges and concession fees be eliminated when energy is fed back into the supply network (vehicle-to-grid) to establish bidirectional charging.
• Charging Prices: The VDA reiterated that charging prices are necessary for the market ramp-up of e-mobility. It called for the electricity tax for e-mobility to be reduced to make charging electricity less expensive, noting that the draft 'falls short of the coalition agreement' on this point.

The VDA also urged the government to advocate for targets in the Alternative Fuels Infrastructure Regulation (AFIR) at the level, stating that the AFIR targets are not to the market ramp-up of e-mobility in Europe.

HERE Technologies, a provider of location data and technology platforms, has announced its collaboration with the Automotive Research Association of India (ARAI) as the ‘Official Navigation on Autopilot and Localisation Partner’ for The ADAS (Advanced Driver Assistance Systems) Show. The event is organised by Aayera in collaboration with ARAI and MarketsandMarkets.

This partnership is taking place at the newly opened ADAS Test City near Pune, Maharashtra, which is touted as India’s first testing ground for ADAS and autonomous vehicle technologies.

The collaboration supports HERE Technologies' aim to speed up India’s progress towards intelligent transport and connected mobility. By combining HERE’s expertise in high-precision mapping, real-time localisation and connected vehicle data platforms with ARAI’s research and standards work, the partnership aims to bring ADAS and autonomous technologies closer to deployment under Indian driving conditions.

“We’re honoured to partner with ARAI on this transformative initiative. The ADAS Test City is a cornerstone in India’s path toward intelligent mobility and HERE’s high-definition maps and localisation technologies are key enablers of safe, reliable and context-aware driving experiences. Together with ARAI, we aim to empower automakers, tier-1s and developers to localise, test and scale ADAS capabilities that truly reflect India’s diverse road ecosystem,” stated HERE Technologies in a statement.

At The ADAS Show, HERE Technologies will present its innovations, including live demonstrations of its real-time localisation and HD mapping systems during ADAS track demos at the Test City. Visitors can explore HERE’s capabilities, such as HERE HD Live Map and HERE ISA Map, C-V2X, and cloud-based localisation. HERE experts will also participate in discussions on navigation accuracy, vehicle localisation and connected mobility.

The ADAS Test City, developed by ARAI, is an integrated testing environment dedicated to the validation of ADAS and autonomous technologies. It replicates complex urban and highway conditions for testing safety features. The ADAS Show 2025, organised in collaboration with ARAI, is a platform for automotive leaders and innovators.