Dear Friends,

October Vehicle Registrations finally shows positive momentum with the biggest 2 festivals of Navratri/Dussehra and Diwali being in the same month. Never before seen attractive offers boosted the Overall Positive Mood of the Buyers.

I would also like to show my gratitude to all Our Principals for taking Stock Reduction Measures!

At FADA, we Specially Appreciate the actions taken by our 2W OEM’s for delivering on their commitment of reducing Stock with Festival Retail Growth. Although not at FADA Recommended Level of 21 days, 2W inventory has reduced from Alarming Levels. PV inventory already at reasonable levels has further reduced and now almost at the recommended level with all our Principals taking strong and positive steps towards stock reduction. CV inventory also reduces although with Retails continuing to be Weak, further Wholesale regulation is required to reach FADA’s 21 days recommended levels.

Heading into the unknown Territory of BS6 Transition, more needs to be done towards inventory reduction to avoid Dealer Losses. October Retails were in the positive giving a much-needed respite to the Auto Industry and Especially Our Dealer Community after months of De-growth. The Festivals saw very good Footfalls at Dealerships across most of the Geographies and the Consumer Sentiment was Positive and Purchase Decisions were Concluded as used to be During the Growth Years.

Strong Support from Bank’s & NBFC’s helped Convert the Festive mood of the Consumer into Retails. With Continued Liquidity Easing, Business Appetite of Banks & NBFC’s have grown and will surely aid the industry in the path to recovery as the Consumer Sentiment Strengthens in the coming days. FADA requests both Banks and NBFC’s to provide more support for a stronger recovery.

As the Complete effect of the positive measures taken by the Government plays out and Banks and NBFC’s aggression continuing post the festive season, strengthening of Demand is expected along with bottoming out of the De-growth.

With a New Normal now being more or less set, FADA expects the near term to be stable and Consumer Sentiment changing for the positive as the Economy heads towards recovery with the Governments Strong Focus and Actions towards it.

FADA continues its recommendation to its members to tread with Caution, especially with regards to inventory and Costs during this dynamic time of Fluctuating Consumer Sentiment due to Overall weak economic situation and BS6 transition.

FADA will also continue to engage with all the stakeholders for a smooth transition into the BS6 Regime for its members including seeking Legal Remedy if required.

Reiterating to activities in FADA, I am happy to share that getting Auto Dealerships and Workshops under the MSMED Act, we met Shri Nitin Gadkari ji Honourable Union Minister for MoRTH & MSME and requested him to reconsider Auto Dealer Community’s request for bringing Automobile Dealers Workshops & Service Centre under the ambit of MSMED Act 2006. FADA also met Dr Arun Kumar Pande, Secretary, MSME separately and submitted a representation in this regard.

I am happy to share that for the first time, your Federation was called to attend the Parliamentary Standing Committee Meeting in the Rajya Sabha and was asked to make a presentation on the causes that have adversely impacted Automobile sales and the steps that as a community we felt will help to bring it back on growth trajectory. FADA suggestions were well received and keen interest was shown by the policy makers on introduction of Franchisee Act for Auto Retails for safeguarding Auto Dealers interest. FADA shall be making a detailed representation before the respective authorities in this regard.

FADA is also in consultation with Senior Counsel on BS VI matter for filing Writ Petition in the Apex Court for safeguarding its member’s interest and ensuring a smooth transition to BS VI.

The preparations for the 11th edition of Auto Summit 2020 to be held on February 7, 2020  at Hotel Le Meridien, New Delhi is under full swing. Detailed program is under finalisation and shall be shared once finalised. Meanwhile, I request all my Dealer Friends to register in large numbers and avail of the Early Bird registration benefit.

FADA is strongly advocating for Retail Sale reporting by the OEMs instead of wholesale factory despatches. To strengthen FADA reporting of retail figures, I will request each and every member of the automobile dealer community to participate in the 5 minute online Retail Survey conducted by FADA every month. These figures help us in our representation to various Government Bodies on Dealer pain points.

Friends,

The going continues to be tough for our Community, but I am sure we will soon come out of it.

FADA is Putting in all efforts to ensure that the burden of its members is reduced in these difficult times and engaging with all Stake Holders for the same.

The Important thing is to be Positive during these tough times and Believe in the Business that we are in and use it as an Opportunity to Strengthen your Organisation.

Every Downturn in Our Business allows us the Opportunity to recalibrate our Business  and prepare for the Future.

The Difficult part is to ensure that the learning of this downturn remains with us even when Growth returns to ensure a Strong and Healthy Business ready for any kind of Environment.

Though times are challenging, it is at such times we must forge ahead together and create history.

I look forward to your support & cooperation and inputs for helping us take FADA to next level.

FADA Will Stand Strong with all Our Members and keeping working Towards a Stronger Dealer Community…Now and in the Future.

Warm Regards,

Ashish Harsharaj Kale

President, FADA

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