FADA says dealer viability and policy issues continue to remain concerns for automotive dealers across segments | The Financial Express

FADA says dealer viability and policy issues continue to remain concerns for automotive dealers across segments

The category-wise leaders included Honda Motorcycle & Scooter India (HMSI) in the two-wheeler segment, Kia Motors in the passenger vehicle category, Volvo Cars in the luxury PV segment and Volvo Eicher Commercial Vehicles (VECV) in the commercial vehicle segment.

FADA says dealer viability and policy issues continue to remain concerns for automotive dealers across segments

The Federation of Automobile Dealers Association (FADA), the apex body representing the automobile dealers across India has released the second edition of the Dealer Satisfaction Study 2022 results which were undertaken in association with PremonAsia, a consumer-insight-led consulting and advisory firm based out of Singapore.

The online survey conducted across India saw over 1,900 dealers participating and sharing their views. It focused on 6 key parameters –

  1. Viability & policy
  2. Product
  3. Marketing
  4. Sales
  5. Aftersales
  6. Training

The survey found that aftersales (26%) followed by sales & order planning (22%) continued to be the key concern for dealers. Business viability & policy (21%), Marketing (13%), Product (10%), and training (8%) were the remaining priorities.

In terms of dealers’ responses, Kia India scored the highest points to retain the lead as the No.1 OEM in the overall category. The category-wise leaders included Honda Motorcycle & Scooter India (HMSI) in the two-wheeler segment, Kia Motors in the passenger vehicle category, Volvo Cars in the luxury PV segment and Volvo Eicher Commercial Vehicles (VECV) in the commercial vehicle segment.

It further stated that the industry recorded significant improvements, highlighting the importance of this study in identifying key issues which OEMs can action for strengthening their partnership with dealers. Product and aftersales are seen as strengths, while Business Viability/ Policy & Training support requires greater attention from the OEMs.

Manish Raj Singhania, President, FADA said, “FADA’s Dealer Satisfaction Study 2022 continues to examine the health of the relationship between auto dealers and their OEM’s post the Covid-era. The overall improvements seen across all value chains demonstrate the significance of conducting this annual study in identifying and addressing relevant issues that are critical to strengthen the partnership between the two stakeholders.”

“While we welcome the efforts shown by OEMs in improving key issues related to sales, delivery and aftersales, dealers continue to expect higher transparency in matters related to Dealership viability and a fair and balanced business policy,” added Singhania.

C S Vigneshwar, VP and Chairman Dealer Satisfaction Survey 2022, FADA said, “I am ecstatic to say that FADA’s DSS’22 continued to get more than 2,000 responses. This shows the trust which the Dealers have on this study in terms of raising their concerns which can then be addressed by their OEMs in a logical manner.”

“While product reliability and durability coupled with efficient training programmes for sales and service teams remained the strengths cutting across all segments, involvement of Dealer’s in OEM’s policy making and openness to direct inputs along with overall dealership viability remained the biggest areas to be worked upon,” said Vigneshwar.

Rajeev Lochan, Founder & CEO, PremonAsia said, “As post-Covid business normalisation sets in, dealers are showing a shift in expectations with aspects related to sales & delivery and aftersales (particularly warranty issues) assuming greater importance than 2021. While the improvements made by OEMs in these factors is encouraging, the expectations on Dealer’s business viability and the role of regional sales and service teams in representing dealer’s voice back to the head office will be vital in the foreseeable future.”

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