Tag: Federation of Automobile Dealers Associations

FADA initiates Annual Dealer Satisfaction Study

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.”

Year End Statement by Industry Leaders

Mr. Vinkesh Gulati – President, Federation of Automobile Dealers Associations (FADA),
Mr. Vinkesh Gulati – President, Federation of Automobile Dealers Associations (FADA),

Mr. Vinkesh Gulati – President, Federation of Automobile Dealers Associations (FADA),

“2020 was an unprecedented year for the entire world and Indian Auto Industry was not left untouched. As the year draws to a close, we believe that the worst is now behind us and the entire eco-system now needs to make collective efforts in reviving the economy. While the Government is keeping an eye on limiting the spread of Covid, Pharma companies are making all possible efforts to roll out the Vaccine. All these efforts will be pivotal in bringing economy back on track.

 Even before Covid hit us, Auto Sales were slowing for the entire year of FY19-20. For the first time in history, we saw zero sales in April’20 but since unlocking began, we are also witnessing one of the best V Shaped recoveries aided by good monsoon, better harvest, festive demand and marriage season, though on a yearly basis there is still some degrowth. Tractors have particularly done well thus showing Bharat kept India moving. Lately we have seen good pent up demand in Passenger Vehicles and hopefully it will stay as safer mobility due to Covid and new launches in the new year will keep the demand going. While the Industry will witness an overall degrowth of around 20-25% on FY basis, things will start looking better beginning April aided by lower base of last year.

 Covid has taught us to make tough choices to ensure our dealerships survive. Decisions such as rightsizing, financial prudence and adapting to the new normal were difficult but have eventually resulted in robust business models and improve efficiency. We are a resilient Industry and automobiles remain an aspirational purchase. Despite the current challenges, we are now at the cusp of entering exciting times as India will once again increase its momentum to achieve the 3rd position globally in PV segment as the entire Industry will work towards achieving this goal.”

Sunil Bohra, Group CFO, UNO MINDA Group
Sunil Bohra, Group CFO, UNO MINDA Group

Mr. Sunil Bohra, Group CFO, UNO MINDA Group

“2020 has been a roller coaster ride with the Global economies witnessing its worst phase in many decades. India too saw an unprecedented change in consumer behaviour. Technology took centre stage. The adoption of technology during the pandemic due to social distancing norms was a big change.

And now with the easing of restrictions and steps being taken to revive the economy, the economic clock has started ticking in the upward direction. The last few months have been very encouraging for the auto sector and the recent festive season has given a significant push towards growth.

We expect 2021 to be a year of hope and optimism. Strategic long-term government plans and policies will play a key role in reviving the market and regaining customer confidence. The industry may witness a sharp recovery, as a clear sign of revival was noted in the past few months. With OEMs planning a slew of launches in 2021, it is a positive sign and will boost confidence among customers, giving a much-needed push to the automobile ecosystem.

At Minda Industries, we are making all possible efforts to sustain the momentum, focussing on product development, offering best service to our OEM partners and following the government’s Covid regulations and restrictions. We are already operational across manufacturing lines, operating close to or better than pre-Covid levels and all set for the post-Covid era.”

Mr. Anuj Kapuria - Founder & CEO at Hi-Tech Robotic Systemz LTD
Mr. Anuj Kapuria – Founder & CEO at Hi-Tech Robotic Systemz LTD

Mr. Anuj Kapuria – Founder & CEO at Hi-Tech Robotic Systemz LTD

“This year 2020 has totally changed not just the consumer behavior but also how organizations view their supply chain and related digitization and automation needs. There will be a significant rise in the adoption of AI and Robotics in the coming year, perpetuated by the social distancing norms, contactless deliveries and higher productivity along with less manpower dependence. While the vaccine availability will ease and smoothen the restrictions in business operations, it is AI and Robotics that will lead the way in heralding the new normal.”

ASDC and FADA join hands with Google to lead industry’s Digital Transformation

Mumbai: Recognizing the need to prepare over 20,000 auto dealerships to engage with customers in the ongoing and post-pandemic era, the Automotive Skills Development Council (ASDC) and Federation of Automobile Dealers Associations (FADA) have joined hands with Google India to bridge the digital skill gap in the country’s auto dealerships and build their capacity in this critical growth driver.

Industry experts believe that some customers may not wish to visit a dealership as many times as before prior to making a purchase decision, and hence, there is an urgent need for automotive retail to become virtual, lean, and flexible.

Tailor-made by Google India under its “Grow with Google” initiative, the training program will be conducted via a series of webinars on Digital Marketing, Hyper-Local Marketing, and Full-Funnel Strategy on Google India’s YouTube channel. The focus of the program is on empowering dealer principals to adopt digital tools and platforms to engage with customers. In its second phase, the program also aims to train frontline sales and marketing executives via a series of vernacular executional videos. This will be followed by an online assessment and certification by Google India, ASDC and FADA.

Commenting on the initiative, Nikhil Bansal, Head of Automotive, Google India, said “Over the years, the window to influence purchase decisions through offline efforts has become smaller. The average number of visits to dealerships in India fell by 50% over the last three years from 2016 to 2019. And now, COVID-19 has made consumers further reluctant to visit car dealerships, and as a result, walk-ins are even fewer. To aid business recovery, auto players are encouraged to take their dealerships to customers, online. We have been working with leading auto OEMs to help them digitise their dealership networks, and with this initiative, we are now bringing our learning and support to handhold the larger auto dealer ecosystem to go digital in collaboration with ASDC and FADA. We are really excited to join hands with the industry in this first-of-its-kind initiative to help the dealer fraternity and support them in this necessary transition. “

Nikunj Sanghi, Chairman, Automotive Skills Development Council (ASDC), said, “We are collectively experiencing an unprecedented time. COVID-19 has brought significant change and our relationships have gone digital. Existing skills will require a lot of redefinition and skilling will play a major role when we re-enter the new world. We need to train the workforce on how to use digital tools and train the entire ecosystem to monitor their efficiency. Hence to maintain market continuity, both ASDC and FADA, with the help of Google, are helping the dealerships become as active as original equipment manufacturers (OEMs) on digital platforms. We are also constantly working towards enhancing our skill development initiatives keeping in pace with the rapidly changing technology trends and emerging industry needs. ASDC assessment and certification will help in boosting the competency and competitiveness of industry stakeholders”.

Talking about the webinars, Vinkesh Gulati, President, Federation of Automobile Dealers Associations (FADA), said “With the advent of technology and new channels of communication, the classical approach to marketing products and services at the local level has undergone a paradigm change. Gone are the age-old practices of relying on inserts, banners, and small print ads to gain exposure. Today, geo-location targeting, hyperlocal marketing and other sharply defined digital marketing techniques have revolutionized the advertising industry. The digital movement by the dealers’ community reaffirms FADA’s strong commitment to retain the dynamism of dealer business in the automobile ecosystem and also assure its participation in Government’s Digital India Movement in the post-COVIDworld. The Google–ASDC–FADA webinars are hence aimed to prepare Dealer Principals and their teams to stay ahead in the game in times to come.”

The initiative focuses on training over 20,000+ auto dealerships across the country to build an online presence, and providing digital skill training to 100,000+ auto dealers across the marketing and sales divisions.

About Google, Automotive Skills Development Council (ASDC) and Federation of Automobile Dealers Associations (FADA)

Google: Google’s mission is to organize the world’s information and make it universally accessible and useful. Through products and platforms like Search, Maps, Gmail, Android, Google Play, Chrome and YouTube, Google plays a meaningful role in the daily lives of billions of people and has become one of the most widely-known companies in the world. Google is a subsidiary of Alphabet Inc.

Automotive Skills Development Council (ASDC): ASDC, is the first sector Skill Council of India, promoted by the Automobile industry, through Society of Indian Automobile Manufacturers (SIAM), Automotive Component Manufacturers Association (ACMA) and Federation of Automobile Dealers Association (FADA) along with the Government of India represented by Department of Heavy Industry, Ministry of Skill Development and Entrepreneurship, Ministry of Road Transport & Highways and National Skill Development Corporation (NSDC). ASDC envisions making India self –sufficient in availability of skilled personnel for sustaining growth & increasing competitiveness of the automobile industry.

Federation of Automobile Dealers Associations (FADA): Founded in 1964, Federation of Automobile Dealers Associations (F A D A), is the apex national body of automobile retail industry engaged in the sale, service and spares of 2/3 Wheelers, Passenger Cars, UVs, Commercial Vehicles (including buses and trucks) and Tractors. F A D A represents over 15,000 automobile dealers having 25,000 dealerships including 30 Associations of Automobile Dealers at the Regional, State and City levels accounting for 90% of market share in India. F A D A, at the same time also actively networks with the industries and the authorities, both at the Central & State levels to provide its inputs and suggestions on the Auto Policy, Taxation, Vehicle Registration Procedure, Road Safety and Clean Environment, etc. to sustain the growth of the Automobile Retail Trade in India.