By Dominick Rodrigues
Mumbai : “The Auto Retail fraternity is shocked to hear another US Auto Major, Ford India’s announcement where it has said that it will shut down production with immediate effect,” according to Vinkesh Gulati, President, the Federation of Automobile Dealers Associations (FADA).
Commenting recently on Ford India’s Announcement, Gulati said “While trying to handle Dealer anxiety, Ford India President & MD, Anurag Mehrotra called me personally and assured that they will adequately compensate Dealers who continue to offer vehicle service to customers.”
“Though this is a good beginning, it is not enough as there are over 170 Dealers, who in-turn have over 391 outlets and have invested over Rs 2,000 Cr for setting up their dealerships. While Ford India employs 4,000 people, Dealerships employ around 40,000 people without displacing them from their home locations thus being continuously skilled and up-skilled all this while,” he said.
Ford India Dealers currently hold over 1,000 vehicles — which amount to over Rs 150 Cr via inventory funding from reputed Indian Banks – besides also carrying hundreds of Demo Vehicles,
He said, adding that Ford India also appointed multiple dealers until 5 months back and such Dealers will be suffering huge financial loss.
“The FADA has been requesting the Government of India to roll out the “Franchisee Protection Act” due to its unavailability, as Auto Dealers are not adequately compensated like their counter parts in Mexico, Brazil, Russia, China, Indonesia, Malaysia, Japan, Italy, Australia, Sweden and many other countries, where this law exists. After General Motors, Man Trucks, Harley Davidson, UM Lohia and multiple fly by night Electric Vehicle Players, Ford India is the 5th biggest exit from Indian markets since 2017.”
“The Parliamentary Committee on Industry — in its report number 303 released in December 2020 — had recommended to the Ministry of Heavy Industries that the Government should enact the Franchise Protection Act for Automobile Dealers in the country, so that it is a win-win situation for the Auto Original Equipment Manufacturers (OEMs) and the Auto Dealers, besides being beneficial to customers in the long run.”
The Federation of Automobile Dealers Associations (FADA), which was founded in 1964, is the apex national body of Automobile Retail Industry in India engaged in the sale, service and spares of 2/3 Wheelers, Passenger Cars, UVs, Commercial Vehicles (including buses and trucks) and Tractors. While FADA India represents over 15,000 automobile dealers having 26,500 dealerships including multiple Associations of Automobile Dealers at the Regional, State and City levels representing the entire Auto Retail Industry, it employs over 4 million people at dealerships and service centres.
FADA India, at the same time, also actively networks with the Industries and the authorities, both at the Central & State levels to provide its inputs and suggestions on the Auto Policy, Taxation, Vehicle Registration Procedure, Road Safety and Clean Environment, etc. to sustain the growth of the Automobile Retail Trade in India.
