Dear Dealer Friends,

Reflecting on the Sales of December, the De-growth was not on expected lines as the inquiry levels all through the month were quite robust. Consumer Sentiment Continues to be very weak as Customers did not conclude on the Purchase even after taking the efforts of Inquiring and despite the Best Offers being available.

The Sharp decline in growth has denied the Dealer Community an opportunity to Reduce its BS-4 Inventory making the transition to BS-6 trickier. With such a weak Consumer Sentiment FADA recommends a Very Cautious approach to its members with serious focus on BS-4 Inventory liquidation.

FADA will work towards seeking relief from the Honourable Supreme Court for the BS-4 Inventory of its members as with such weak consumer demand the near term Retail sales are unpredictable, making it extremely difficult for our members to Continue the Current Business and also ensure a Nil BS-4 Inventory on 31st of March.

On the Inventory Front, although there was a slight reduction across all segments, the CV and 2W inventory still remains a concern, especially looking at the Transition and the Current Weakness in Demand. PV for the first time is in the FADA recommended Range of 3 Weeks and a Shout out of appreciation to our PV OEM’s for considering our Recommendation, which benefits the entire ecosystem.

Liquidity still remains a concern for the Dealer Community as well as for the Retail Customer as Banking and Finance Industry continues to be in Cautious mode despite Sufficient Liquidity being Available. Along with Government Measures aimed at Increasing Demand, Equal Importance needs to be given to Availability of Reasonably Liberal Credit, especially in a developing Country like ours where the Growth is Driven by First Time Buyers or Individuals and Businesses looking to Expand Beyond their Current Capacity.

By the time the issue reaches you, the All Important Union Budget would have been announced and I am Sure there would be many measures in it  for rejuvenating Overall Demand and Specific Initiatives to revive growth in Auto Sector. FADA expects the recommendations it had suggested finds place in the Union Budget. The Government had held several rounds of discussion with the industry in which FADA had been also invited along with SIAM & ACMA for understanding the reasons for downturn and how the industry could be brought back to growth trajectory. In fact, BJP for the first time called FADA to understand the Industry challenges so that it could send it’s Party’s recommendation to the Finance Ministry for the upcoming budget.

Hopefully We would also have further News on the fate of the modification application filed by FADA in the Hon’ble Supreme Court against the Court’s order dated October 2018 seeking protection of the BS IV inventory at the dealerships. The October 2018 order has mandated that no sale and registration of BS IV vehicles shall be permitted from April 1, 2020. 

Coming to FADA activities, FADA for the first time is having a Member’s Exclusive Lounge at Auto Expo. I would request Members to come and take rest, have Snacks and Sandwiches on Dealers Day (6th Feb), meet your Friends & Head out once again to Explore the Expo! Also, Tea/Coffee and Cookies will be available on all days. I am eager to Welcome All FADA Members and their Dealership Team at Stall N-81 in Hall #12. Complimentary passes for the same is being given to all those who are registering themselves for attending the 11th Auto Summit.

I am also happy to share that your association is going full throttle in the preparation of the 11th Auto Summit to be held on February 7, 2020 at Hotel Le Meridien, New Delhi. Hon’ble Union Minister of Road Transport, Highways & MSME, Shri Nitin Gadkari ji will be our Chief Guest.

We are also Honoured to Have the Presence of the Senior Most Leaders from Across the Auto Manufacturers and the Banking Industry as well as Presence of Our Members, From the Senior Most to the Youngest at the Summit. For the First time We have presence of Many Important Leaders from  the Eco System of Electric Mobility and I am Sure there would be a lot to Learn on the Speed of Development in the EV Space.

We also have very good Motivational Sessions for all of you, which I am sure will send you back with renewed energy to face the current challenging environment.

The Flow of the day’s event is mentioned in detail in this edition of FADA Journal. Lots of thought has gone in the preparation & finalisation of the Agenda & Speakers for the various Sessions keeping the dealers interest in mind. Therefore, I request you all to register yourself for the Summit if not already done!

The Summit shall also have FADA Awards 2019 Presentation ceremony. Hon’ble Union Minister, Ministry of Skill Development and Entrepreneurship, Dr Mahendra Nath Pandey will be gracing the event and giving away awards to all the winners.

Let’s show our solidarity & strength in your associations Mega Event by participating to attend and encouraging our friends to also attend.

Wishing you a Fabulous February for your Businesses.

Eagerly looking forward to meet all of you at the Auto Summit

Warm regards

Ashish Harsharaj Kale

President – FADA

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