FADA raises concern over sale of two-wheelers by unauthorised multi-brand outlets
Automobile dealers' body FADA on Tuesday said the illegal practice of unauthorised multi-brand outlets selling two-wheelers is making legitimate dealerships lose business and turn unviable.
Automobile dealers' body FADA on Tuesday said the illegal practice of unauthorised multi-brand outlets selling two-wheelers is making legitimate dealerships lose business and turn unviable. The Federation of Automobile Dealers Associations (FADA) said it has approached various authorities to take strict action against the practice.
The multi-brand outlets (MBOs) are acquiring unregistered vehicles in bulk from dealers and reselling them to customers at discounted rates, higher than the prices offered by original equipment manufacturers (OEMs) through authorised dealers, without any commitment to after-sales service, FADA said in a statement.
This has not only impacted the legitimate dealerships but has also shaken customers' confidence in the brand and dealer partners, it added.
Furthermore, the outlets indulge in evasion of GST, income tax, issuance of fake/ undervalued insurance policies, delivery of vehicles without registration/ HSRP and helmets, resulting in revenue loss on various fronts, FADA stated.
Also Read: Electric bus maker Olectra Greentech profit rises 52% YoY to Rs 27 cr in Q4
"We have raised the issue of unauthorised MBOs in the two-wheeler industry, which are not certified as bona fide dealers and sell unregistered vehicles without any trade certificates or after-sales services," FADA President Manish Raj Singhania stated.
This has caused many legitimate two-wheeler dealerships to shut down, making their businesses unviable, he added.
"The dealership business is dynamic and contributes consistently to the economic development of the nation, generating significant employment opportunities in the sector. Illegal practices such as this cause massive losses to the government and society and lead to significant loss of motivation among dealers, leading to greater loss of employment opportunities," Singhania said.
The industry body has also written to SIAM, the association of OEMs, requesting them to raise the issue with concerned OEMs to amend their sales process, ensuring no supply of new/unregistered vehicles to unauthorised outlets, FADA said.
FADA has also reached out to the Maharashtra government and the Transport Commissioners of Mumbai and Delhi, urging them to take stringent action against these MBOs and ensure their compliance with industry standards and regulations, it added.
Catch the latest stock market updates here. For all other news related to business, politics, tech, sports and auto, visit Zeebiz.com.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
Senior Citizen Latest FD Rates: Know what major banks like SBI, PNB, Canara Bank, HDFC Bank, ICICI Bank are providing on fixed deposits
Gratuity Calculator: Rs 38,000 as last-drawn basic salary, 5 years and 5 months of service; what will be gratuity amount?
Top 5 Small Cap Mutual Funds with best SIP returns in 1 year: See how Rs 25,000 monthly investment has grown in each scheme
Top 7 SBI Mutual Funds With Best SIP Returns in 1 Year: Rs 25,000 monthly SIP investment in No.1 fund has jumped to Rs 3,58,404
SBI 5-Year FD vs MIS: Which can offer higher returns on a Rs 2,00,000 investment over 5 years? See calculations
03:44 PM IST