FADA concludes 5th Auto Retail Conclave - ‘Collaborate-Innovate-Accelerate’

New Delhi, September 14, 2023: The Federation of Automobile Dealers Associations (FADA) hosted the fifth edition of the Auto Retail Conclave, focusing on the theme "Collaborate-Innovate-Accelerate” immediately after the 59th AGM.  The conclave witnessed the presence of prominent figures automobile industry, alongside participation from over 500 dealer members representing various regions of the country.

The Conclave was inaugurated by Nitin Gadkari, the Union Minister of the Ministry of Road Transport & Highways, Government of India. Also present on the occasion were Vinod Aggarwal, President SIAM, Shradha Suri Marwah, President ACMA, along with Manish Raj Singhania, President FADA and C S Vigneshwar, Vice President FADA. 

Chief Guest, Nitin Gadkari, the esteemed Union Minister of the Ministry of Road Transport & Highways, at the event stated that, “I would like to extend my heartfelt congratulations to the automobile industry for India becoming the third largest automobile manufacturers in the world. However, our aspirations reach even higher—we aim to position ourselves as the world's leading auto manufacturing hub, and this ambition will require a collaborative effort, uniting India's strengths with global brands. The automobile sector holds a pivotal role, contributing a substantial 40% to India's manufacturing GDP.

Furthermore, our initiatives in recycling materials such as Aluminium, Copper, Steel, Rubber, and Plastic components are poised to reduce automobile component prices by a significant margin of 25-30%. To strengthen our industry's competitiveness, we've set up scrapping centres, welcoming dealerships to participate and even establish training centres. The scrappage policy promises to have a profound impact on our manufacturing costs, making us more globally competitive.”

Nitin Gadkari further added, I would encourage dealers to take in initiating scrapping centres, fitness centres, and driving training centres. This proactive step not only rejuvenates businesses but also aligns with our broader mission of promoting green mobility. Also, the government is committed to providing all necessary support for these initiatives. 

Furthermore, I would like to extend my heartfelt appreciation to the dedicated dealer fraternity for their unwavering commitment to serving customers and urge OEMs to work closely with dealers to enhance revenue generation, recognizing them as integral components of automobile ecosystem. As our industry evolves and adapts to rapid changes, let us move forward together, with dealers, OEMs, and component suppliers working all together to achieve our goals going forward”.

Welcoming all the members from the entire automotive ecosystem at the Auto Retail Conclave, Manish Raj Singhania said, “Today, as we gather for the 5th Auto Retail Conclave, it marks a moment for collective aspiration. Our recent 59th Annual General Meeting allowed us to evaluate our growth trajectory. I extend a heartfelt salute to our esteemed minister, Shri Nitin Gadkari ji, for his visionary initiatives that have transformed India's highways into world-class expressways, sparking a surge in vehicle sales. As stewards of road safety, we've launched our 'Buckle Up Campaign' to remind our customers of the crucial importance of safety on the roads.

He further added, Automobile 2Wheeler industry is an important part of the mobility ecosystem, and hence urge the government to reduce the GST rate from 28% to 18% for entry-level 2-wheelers in the 100-125 cc range. This change isn't just a policy adjustment; it's a catalyst for socio-economic progress.

" Singhania urged the Presidents of SIAM and ACMA to present a unified front for a joint meeting involving SIAM, ACMA, and FADA to discuss issues that require collective attention. The time has arrived for all of us to adopt a more collaborative approach to innovate and accelerate toward a more resilient future."

Auto retail encompasses more than the sale of vehicles; it encompasses road safety, employment, and sustainability. The Indian Auto Retail isn't merely recovering; it's thriving! In the last fiscal year, we witnessed a resurgence, achieving a record-breaking 21% growth rate with 22.1 million vehicles leaving our showrooms. Two-wheelers surged by 19%, three-wheelers by a staggering 84%, passenger vehicles by 23%, and commercial vehicles by an incredible 33%. Despite this remarkable progress, the 2-wheeler segment remains 20% below pre-Covid levels. In the last five months Auto sales have grown by 7%.

The conclave witnessed the unveiling of the Auto Dealers Day Logo, which is to be celebrated on the 19th of September. Alongside, a solemn road safety pledge with the honorable ministers underscored the importance of safety on our roads. Further enhancing the significance of the occasion was the launch of a coffee table book titled 'Golden Dealerships in Auto Retail Business.

FADA felicitated HCIL for signing this New Dealer Agreement in accordance with FADA's MDA, emphasizing the industry's collaborative and forward-thinking approach. Honda Cars India Ltd. has exemplified its commitment to industry best practices by aligning its new dealership agreement in sync with FADA's Modern Dealership Act draft. This proactive step, recognized and celebrated at the conclave, underscores HCIL's dedication to robust dealer partnerships. 

The conclave witnessed a series of sessions with industry abled leadership sharing their views & vision for the sector & its challenges. The key Power Panel discussion were on strengths and opportunities in 2-wheelers and 3-wheelers, followed by strengths and opportunities in Passenger Vehicles and Commercial Vehicles.