Automobile dealers expect high transparency, fair business policy from manufacturers: FADA

Automobile dealers continue to expect higher transparency regarding their viability and a fair business policy from vehicle manufacturers, Federation of Automobile Dealers Associations said on Friday.

Among the major expectations of dealers from vehicle manufacturers are their involvement in the policy-making of the automotive companies and openness to direct inputs, Federation of Automobile Dealers Associations (FADA) said while releasing its Dealer Satisfaction Study 2022.

"While we welcome the efforts shown by OEMs in improving key issues related to sales, delivery and after-sales, dealers continue to expect higher transparency in matters related to 

Dealership viability and a fair and balanced business policy," FADA President, Manish Raj Singhania said in a statement.

In the four-wheeler mass market segment, the study found that sharing training costs with the OEMs is an area of concern along with the involvement of dealers in policy making. The dealers are happy with product reliability and the range to offer to customers.

Kia India topped the list of most satisfied dealers in the segment, followed by Hyundai Motor India and MG Motor India in second and third positions. Car market leader Maruti Suzuki India was ranked eighth.

In the four-wheeler luxury segment, FADA said dealers raised concerns over parts delivery and turnaround time as well as OEM's ability to meet orders for vehicles as per specifications and requirements.

Volvo Cars India topped the segment followed by Mercedes Benz India.

As for two-wheelers, the study found that the buyback/deadstock policy of vehicle manufacturers and margins on sales were areas of concern, which need to be attended to as these impact dealer viability directly.

According to the study, dealers of Honda Motorcycle & Scooter were the most satisfied followed by Hero Motocorp and Royal Enfield.

In the commercial vehicles segment, FADA said dealers were concerned about ensuring viability and dealing with deadstock and inventory buyback by the OEMs.

Dealers of Volvo Eicher Commercial Vehicles were the most satisfied in the category, followed by Tata Motors and Ashok Leyland, as per the FADA study conducted in association with PremonAsia, a consumer-insight-led consulting and advisory firm.

As post-COVID business normalisation sets in, dealers are showing a shift in expectations with aspects related to sales and delivery and after-sales, particularly warranty issues, assuming greater importance than in 2021, PremonAsia Founder and CEO, Rajeev Lochan said.

"While the improvements made by OEMs in these factors are encouraging, the expectations on dealer's business viability and the role of regional sales and service teams in representing the dealer's voice back to the head office will be vital in the foreseeable future," he added.