Tag: FADA

Business World

FADA initiates Annual Dealer Satisfaction Study

Feb 17, 2021 by Neel Achary 0 Comments #FADA, #Federation of Automobile Dealers Associations

Mumbai: Federation of Automobile Dealers Associations (FADA), the apex national body of Automobile Retail in India today informed that FADA is initiating Annual Dealer Satisfaction Study in association with PremonAsia, a consumer-insight led consulting & advisory firm based out of Singapore.

This comprehensive study will serve the following objectives:

• To understand & quantify dealer expectations from OEMs

• To measure how OEMs perform in meeting or do they exceed dealer expectations

• To identify gaps that impact OEM-Dealer partnership across all key business aspects

• To identify how dealers foresee the evolving automotive retail business

• To provide actionable insights that OEMs & dealers can work together in enhancing their business partnership

Commenting on the announcement of this study, FADA President, Mr. Vinkesh Gulati said, “I am delighted to announce that FADA in partnership with PremonAsia has initiated the most in-depth study which we are going to take in next few months. With a sizable sample, FADA – DSS will provide adequate representation from every quarter and cutting across all categories of vehicles. The study will also have a good demographic mix coupled with urban and rural balance. We are excited to release the final report by end of June’21. I am confident that the survey will act as our report card to manufacturers and will enable to highlight best practices as well as close the gaps wherever possible!”

FADA Secretary Mr C S Vigneshwar who heads this project said, “This study comes at a crucial time when the industry is facing unprecedented headwinds. This is the first large scale study that is done for the dealers, by the dealers and from the Dealers Association to see how manufacturers are supporting their dealership networks. We intend to deep dive into every aspect of dealership management and to highlight the best practices followed by manufacturers in keeping a profitable and sustainable dealer network.”

PremonAsia Founder and CEO, Mr Rajeev Lochan said, “We are excited to partner FADA in offering 2021 Dealer Satisfaction Study, first of many new initiatives designed to serve the business needs of the automotive sector. The industry is emerging from one of the most challenging times witnessed in the recent history. The idea of this study is not just to examine the drivers of a successful OEM-Dealer business partnership, but to go deeper in exploring how the future of automotive retail business is likely to evolve in the new post-COVID world.”

Business World

FADA Releases October’20 Vehicle Registration Data

Nov 9, 2020 by Gouri Achary 0 Comments #FADA, #Mr. Vinkesh Gulati, #October’20 Vehicle Registration Data

The Federation of Automobile Dealers Associations (FADA) today released the Monthly Vehicle Registration Data for the Month of October’20.

October’20 Registration

Commenting on how October’20 performed, FADA President, Mr. Vinkesh Gulati said, “October continues to see positive momentum on monthly basis but on a yearly basis the negative slide continues to increase. The 9 days Navratri period witnessed robust vehicle registrations but could not save October to go in red as compared to last year when both Navratri and Diwali were in the same month.

While new launches continued to be in demand in the Passenger Vehicle segment, entry-level motorcycles witnessed a lean demand in the 2-Wheeler segment. With supply-side mismatch, most of the passenger vehicle dealers ended with a limited stock of high selling items and odd variants which did not attract much demand. This coupled with lower discounts, compared to last festivals also played a spoilsport.

While Small Commercial Vehicles are seeing robust demand due to local goods transportation back to pre-covid levels, the Medium and Heavy Commercial Vehicles segment continued to bleed. FADA urges the Government to urgently announce an attractive incentive based Scrappage Policy. It also requests the Government to release funds for infrastructure projects which it has awarded as this will help demand generation and will lead to higher production of vehicles.

The Government’s continued procurement of Kharif crops at MSP from farmers is leading to a higher disposable income in rural India. This continues to show robust demand in Tractor segment which grew at a healthy 55% YoY.”

Near Term Outlook

 As we enter the last leg of festivals and with Covid getting into its 3rd wave in many cities, there is a sense of cautiousness amongst customers. Due to the lockdown announced in few European Countries, procurement of spares will also be a cause of hindrance for smooth supply of vehicles in Indian markets. This will create a supply and demand mismatch thus affecting the passenger vehicle sales.

 FADA once again cautions both OEMs and Dealers to keep a check on vehicle inventory as post festivals, demand may remain subdued. Since Inventory levels are at its highest during this Financial Year, it may impact Dealer’s financial health thus leading closures and job losses.

 Key Findings from our Online Members Survey

 Sentiments

    • 43% of dealers rated it as Good
    • 42.6% of dealers rated it as Neutral
    • 14.3% dealers rated it as Bad

 Liquidity

    • 43.8% of dealers rated it as Good
    • 41% of dealers rated it as Neutral
    • 15.1% dealers rated it as Bad

 Expectation in November

    • 37.1% dealers rated it as Flat
    • 33.1% of dealers rated it as Growth
    • 29.9% dealers rated it as De-growth

 Inventory

    • Average inventory for Passenger Vehicles ranges from 35 – 40 days
    • Average inventory for Two-Wheeler ranges from 50 – 55 days

 Chart showing Vehicle Registration Data for October’20 with YoY comparison can be found below:

 All India Vehicle Registration Data for October’20

CATEGORY

OCT’20

OCT’19

YoY %
2W

10,41,682

14,23,394

-26.82%
3W

22,381

 63,042

-64.50%
CV

44,480

 63,837

-30.32%
PV

2,49,860

 2,73,980

-8.80%
TRAC

55,146

 35,456

55.53%
Total

14,13,549

18,59,709

-23.99%

Source: FADA Research

Disclaimer:

  • The above numbers do not have figures from AP, MP, LD & TS as all these States/UT’s are not yet on Vahan
  • Vehicle Registration Data has been collated as on 11.20 and in collaboration with Ministry of Road Transport & Highways, Government of India and has been gathered from 1,257 out of 1,464 RTOs.