F A D A Journal - December 2018

Federation of Automobile Dealers Associations | fada.in | Estb: 1964 December 2018 | Vol. 18 | Issue: IX | Pages : 60 | Rs. 50

fada 6, President’s Message

Journal Auto Sales Hits a Speed Bump, PV &
2W Sales Crack on Various Grounds
Insights from the Automobile Retail Industry
At F A D A, we welcome to build Momentum with Dealer
Community, State by State

12, India Economics

Growth Slows on Weak Consumption
| Inflation Falls to Record Low

24, Judgement

Delhi High Court and Supreme Court
Judgements on Handling Charges

17, Perspective 44, F A D A News

Automotive Retail 2030 Post Event Report of Vyapar Gujarat

14, Forthcoming Event 30, The Zero Hour

Vyapar Exclusive Interview
with Gen-Next
Karnataka
Santosh John Rodrigues
Collaborate | Accelerate | Celebrate
Partner, Karnataka Agencies, Mangalore
Friday,
the 8th february 2019

Venue

Radisson Blu Atria
5-6 BOecntogbaelrur20u18

at Radis2s.3o0npmBolnuw,arNdagpur





contents Federation of Automobile Dealers Associations | fada.in | Estb: 1964 December 2018 | Vol. 18 | Issue: IX | Pages : 60 | Rs. 50

December 2018 | Vol. 18 | Issue: IX fada 6, President’s Message

6 President’s Message Journal Auto Sales Hits a Speed Bump, PV &
2W Sales Crack on Various Grounds
Auto Sales Hits a Speed Bump, PV and 2W Sales Crack on Various Grounds Insights from the Automobile Retail Industry
At F A D A, we welcome to build Momentum with Dealer
10 Industry Track Community, State by State

Auto Sales in November Lacks Sheen 12, India Economics

12 India Economics Growth Slows on Weak Consumption
| Inflation Falls to Record Low
Growth Slows on Weak Consump on | Status Quo Maintained on Benchmark Repo Rate |
Infla on Falls to Record Low | IIP Accelarates on the Back of Base Effect | Trade Deficit 24, Judgement
Narrows but Exports S ll Under Stress
Delhi High Court and Supreme Court
14 Forthcoming Event Judgements on Handling Charges

Vyapar Karnataka scheduled to be held on 08 February 2019 at Bengaluru 17, Perspective 44, F A D A News

16 Updates of 31st GST Council Meeting Automotive Retail 2030 Post Event Report of Vyapar Gujarat
30, The Zero Hour
17 Perspective 14, Forthcoming Event
Exclusive Interview
Automo ve Retail 2030 Vyapar with Gen-Next

22 Surveys & Studies Karnataka Santosh John Rodrigues

Luxury Car Buyers Strongly Engaged throughout Purchase Process, J D Power Finds Collaborate | Accelerate | Celebrate Partner, Karnataka Agencies, Mangalore

23 Dealership Pro itability Friday,
the 8th february 2019
Dealership Solu ons: Dealer Pain Points and How to Overcome Them?
Venue
24 Judgement
Radisson Blu Atria
Delhi High Court and Hon’ble Supreme Court Judgements on Handling Charge 5-6 BOecntogbaelrur20u18

27 Consumer Case Study at Radis2s.3o0npmBolnuw,arNdagpur

30 The Zero Hour Printed and Published by Saharsh Damani on behalf of Federa on of
Automobile Dealers Associa ons, 805, Surya Kiran, 19, K G Marg, New
An exclusive interview with Santosh John Rodrigues, Partner, Karnataka Agencies, Mangalore Delhi-110001.

32 Membership Printed at Sita Fine Arts P Ltd, A-16, Naraina Indl Area - II, New Delhi

34 Regional News Editor: Saharsh Damani

36 Know Our Member Advertisers’ Index 05
09
Profile of Ace Kudale Car Pvt Ltd, Pune 21North 35
Ashok Leyland 53
37 Chart of the Month Bagga Link 03
Popular Vehicles & Services 33
38 Upgrades Provincial Group 02
Shri Ram Transport Finance 59
40 News Basket Tata Capital Financial Services 58
Tata Motors
42 Competition Law Updates United Group of Institutions
43 F A D A Delegation to NADA
Editor, F A D A Journal and CEO, F A D A
44 F A D A News
Mr Saharsh Damani
Post Event Report of Vyapar Gujarat held on 20 December 2018 at Ahmedabad T +91-11-6630 4852, 2332 0093, 2332 0095
E [email protected]
54 Statistics
Of ice Bearers Vice President
Vehicle Sales, Y-o-Y Growth & Market Share - November 2018 Mr Vinkesh Gulati
President E [email protected]
Mr Ashish Harsharaj Kale
E [email protected]

Hony. Secretary Hony. Treasurer
Mr Manish Raj Singhania Mr C S Vigneshwar
E [email protected] E [email protected]

International Director
Mr Nikunj Sanghi
E [email protected]



President’s Message

Auto Sales Hits a Speed Bump, PV and 2W
Sales Crack on Various Grounds

At F A D A, we continue to build Momentum within Dealer Community, State by State

Dear Friends, end discoun ng was at a “2W Inventory stand
new high. This was the at 50-60 days, PV
Post the Fes ve Season, best me for any inventory stands in
which created a big dent customer to buy his between 40-45 days.”
in Auto Sales, we were favorite vehicle. Apart
hopeful for a Sales from the favorable prices Dealerships, even Post-
Revival as Fuel Prices with high discoun ng Fes ve Season are Very
con nued its downward and many giveaways and High as 2W Inventory
journey. Due to high enquiry levels being stand at 50-60 days, PV
inventory levels, year- above the red mark, the inventory stands in
sales were not as per between 40-45 days.
“Apart from the expecta on. This is a Inventory levels in CV,
favorable prices with worrying moment for the although not at alarming
high discoun ng and Dealers and for OEMs. levels, are s ll not in the
many giveaways and desired range.
enquiry levels being It is a well-known fact
above the red mark, that the current I am thankful to all the
the sales were not as inventory levels at OEMs that they have
per expecta on.” taken note of the stock
situa on as many of their
recent press statements
reflect the same. F A D A
is apprecia ve of the
efforts taken by the PV

“F A D A is
apprecia ve of the
efforts taken by the
PV OEM’s, majority of
whom have taken
conscious steps
towards reducing
Dealer Inventory and
look forward to the
same con nuing ll
we are at 30 days
Inventory.”

6 F A D A Journal December 2018 | fada.in

President’s Message

OEM’s, majority of whom working capital, which, A D A and SIAMs view has “I am happy to share
have taken conscious with the current NBFC already been shared with that J D Power has
steps towards reducing Liquidity Crises and the FIDC for preparing this incorporated all our
Dealer Inventory and high cost of opera ons of Joint Representa on. inputs and
look forward to the same dealerships is a big beginning this year
con nuing ll we are at hinderance in running “F A D A Awards the survey will be
30 days Inventory. one’s dealership powered by Autocar released jointly as
efficiently. Professional is the ‘J D Power –
“We will be scheduled to be held F A D A Dealer
appealing to the 2W To take a stock of the some mes in the Sa sfac on Study’.”
OEM’s to take Note of situa on of NBFC month of August
the Huge Inventory Liquidity issue, SIAM 2019. For the first different Parameters. Mr.
and Take Urgent which is the associa on Shantanu Nandi
Correc ve Measures of all OEM’s, called for a me, F A D A has Majumdar, Regional
towards reduc on to joint mee ng with engaged EY as its Director – Automo ve
normal levels.” General Insurance Evalua on Partner.” Prac ce visited us from
Corpora on of India Singapore to discuss the
Similar efforts were not (GIC), Finance Industry Con nuing with our work Survey with us. I am
visible as being taken by Development Council at F A D A, the F A D A happy to share that JD
the 2W OEM’s and we (FIDC) and F A D A. The Awards powered by Power has incorporated
will be appealing to the discussions were around Autocar Professional is all our inputs and
2W OEM’s to take Note the current NBFCs scheduled to be held beginning this year the
of the Huge Inventory liquidity crisis and some mes in the month survey will be released
and Take Urgent insurance trends. F A D A of August 2019. For the jointly as the “JD Power –
Correc ve Measures took up the ma er very first me, F A D A has F A D A Dealer
towards reduc on to strongly and deliberated engaged Ernst and Young Sa sfac on Study”.
normal levels. on how the current (EY) as its Evalua on
liquidity crisis and Partner. EY is already We will seek your
The en re Auto Retail insurance flip flops are evalua ng 70 Awards of support in ensuring
Eco-system of OEM, hur ng the Auto Sales. It Varied Business and maximum par cipa on
Financier and Dealers was decided that a Joint Entertainment industry of our members in
now recognize this to be Representa on will be and bring with them a answering the survey so
a pain point and I am given to Ministry of Treasure Trove of that a complete
hopeful that stock Finance post which a Experience in Evalua on. feedback is received
correc on will be small delega on will This will make the En re across all the ver cals
brought to check even meet the Award process more and geographies.
immediately as it is Honorable Finance accurate and sharper.
becoming unviable for Minister and appraise To con nue our
dealers to maintain such him about the current Every year JD Power with interac ons with the
high levels of inventory situa on and seek support from FADA, Government, we invited
with every passing day. solu ons. While I write, F brings out its Dealer M r. A b h ay D a m l e , J t .
This is also crea ng an Sa sfac on Study Secretary, MoRTH and
excess demand for (DSWAMI) where Dealers discussed on how the
rate their OEM on

fada.in | December 2018 F A D A Journal 7

President’s Message

“I am happy to share body has created an State. I am sure that details will be circulated
Dealers are finding a lot well in advance.
that as first yet Associa ons Council of value in such events
where on one hand we A New Year brings with it
significant step, we which meets every discuss State Related many Opportuni es and
have released Road quarter and discusses Issues and on the other as we end the year, it’s
Safety S cker co- how each industry is hand, Best Prac ces and
branded by MoRTH performing. The Mo va onal Sessions me to reflect on the Hits
and F A D A at our Commi ee is chaired by are being held. Events and Misses and prepare
latest event Vyapar CII Vice President and like these helps the ourselves for the
Gujarat and also SIAM Past President Mr. dealers connect with Challenges our Business
released a co- Vikram S Kirloskar. F A D each other and also give Faces as well as encash
branded safety video A put across the issues them a sense of where the many Opportuni es
message on New which the dealer the industry is moving that the New Year brings
Year’s Eve to prevent community is currently towards. along.
drunk driving.” grappling with. The
points were well taken “Vyapar Karnataka Wishing all of you a Very
Ministry and F A D A can and the same has also is being organized Happy New Year.
join hands on various been put across relevant around 8th Feb’19 in
issues and specially Road ministries. Bangaluru. I am Warm regards,
Safety. I am happy to sure that dealer
share that as first yet friends from within Ashish Harsharaj Kale
the state will be
significant step, we have “This me, Vyapar eager to a end this
released Road Safety Gujarat touched a first F A D A event in
S cker co-branded by total foo all of ~200 the state.”
MoRTH and F A D A at our delegates who visited
latest event Vyapar from every part of To con nue our march
Gujarat and also the State.” ahead, Vyapar Karnataka
is being organized on 8th
released a co-branded Con nuing with the Feb’19 at Radisson Blu
safety video message on Vyapar Series of events, Atria in Bengaluru. I am
New Year ’s Eve to Vyapar Gujarat was held sure that dealer friends
prevent drunk driving. on 20th December in from within the state will
2019 will be the year that Ahmedabad along with be eager to a end this
F A D A will focus on 290th Council Mee ng of first F A D A event in the
many ac vi es on Road the Federa on. I am state. As usual, the team
Safety and I shall share happy to share that with is preparing a rich
more ac vi es with all of every Vyapar, the content which am sure
you as and when they number of registered will keep all of us excited
happen and will seek delegates has been and make us leave the
your co-opera on in increasing. This me, event mo vated. More
ensuring wide spread to Vyapar Gujarat touched
our messages. a total foo all of ~200

We recently a ended CII- delegates who visited

ASCON mee ng. CII as a from every part of the

8 F A D A Journal December 2018 | fada.in



Industry Track

Auto Sales in November Lacks Sheen

The month of November nega ve growth of 1.1% in its sale of more than 8,800 units selling 121,658 units during
saw vehicle sales maintain cumula ve sales during the for the month of November April-November period in
cau ous growth in the auto month. 2018. Our super performer 2018, against 117,322 units in
market. The slowdown was brands GRAND i10, ELITE i20, the corresponding period of
all-pervasive and dented all MSIL which largely sells small CRETA, Next Gen VERNA and Apri-November in 2017.
segments of auto market vis- cars posted a decline of 1.2 new SANTRO con nued their
vis previous month sales in the percent in passenger cars market dominance and Rajesh Goel, Sr Vice President
domes c market, due to low including Alto, Wagon R, Swi , showcased our strong and Director, Sales and
consumer sen ments as a Celerio, Ignis, Baleno, Dzire performance and promise of Marke ng, Honda Cars India
result of liquidity crisis in the and Ciaz. In total, the carmaker growth.” Ltd (HCIL) said, “While the
industry, higher interest rates sold 106,325 units in the overall auto industry's growth
and rising fuel costs. domes c market in the month Tata Motors reported total has remained muted, HCIL
of November. sales of 18,419 vehicles could register 10% growth last
Total sales of Passenger (including exports) in the month. This is largely due to
vehicles plummeted by On another hand, the month of November 2018, Diwali which happened in
7.24% in November 2018. company posted a marginal reflec ng a 3.6% decline November this year as
Passenger vehicle domes c growth of 1.9 percent in the compared to 19,102 vehicles compared to being in October
sales were down by 3.43%, U lity vehicle segment. MSIL sold in November 2017. last year along with con nued
and 3-wheeler plunged sold 23,512 units of S-Cross, Cumula ve sales growth of PV good performance of All New
11.9%. Other segments Vitara Brezza, Er ga and Gypsy in the domes c market for the Amaze and robust sales of
barely managed to maintain in November 2018. fiscal (April-November 2018) models like City & WR-V. Our
posi ve trajectory in sales. were at 142,137 units, a consumer offers were also
CVs and 2-wheelers stayed Hyundai Motor India Ltd growth of 24%, compared to very a rac ve.”
on course selling 5.71% and (HMIL) registered an overall 115,049 units, in the same
7.15% more respec vely, in slide of 2.8% in November period, last fiscal. The recently Ford India sales in the
the domes c market during 2018. While the company's launched Tiago NRG, Nexon domes c market slided by 18%
the month. The industry sold domes c sales dipped by 0.7% KRAZ limited edi on, all-new with its sales aggrega ng
2,038,015 vehicles in and exports by 9.3% y-o-y Tigor and the JTP range of cars 6,375 units in November 2018
November as against during the month. have received good response compared with 7,777 units in
1,940,462 vehicles in the in the market. November 2017.
same month last year. The HMIL's total sales stood at
slowdown forced 56,411 units. The domes c The company's sales from Anurag Mehrotra, President &
automakers to cut market accounted for 43,709 exports in November 2018 Managing Director, Ford India,
produc on to adjust with the units, compared to 44,008 were at 193 vehicles against said, “With consumer
market condi ons. units in November 2017. The 270 vehicles in November sen ment con nuing to be
exports totaled 12,702 units in 2017, down by 28.5%. low due to the general
Car market leader, Maru November '18 vis-à-vis exports economic situa on, we expect
Suzuki India Ltd (MSIL) tally of 14,002 units in the Honda Cars India Ltd (HCIL) con nued vola lity in fuel
recording domes c sales of same month last year. registered a growth of 10% prices and infla on to cause
143,890 cars declined by 0.3% with monthly domes c sales headwinds for the passenger
in November 2018 from the Commen ng on the of 13,006 units in November vehicle industry.”
corresponding sales figure of November sales, Vikas Jain, 2018 against 11,819 units in
144,297 cars in the same Na onal Sales Head, Hyundai the corresponding month last Mahindra & Mahindra
month last year. The company Motor India Ltd (HMIL) said, year. HCIL also exported a total (M&M) stalled the nega ve
clocked 15% decline in exports “Hyundai registered domes c of 543 units in November trend by registering a paltry
at 7,437 units to end up with sales of 43,709 units on the 2018. The company registered growth of 1.3% in the domes c
strong performance of newly a cumula ve growth of 3.7% market selling 16,191 vehicles
launched new SANTRO with

10 F A D A Journal December 2018 | fada.in

Industry Track

in November 2018 against Tata Motors' commercial corresponding month last year India Yamaha Motor, scooter
15,990 vehicles sold in vehicle sales during November (November 2017). and motorcycle domes c sales
November 2017. The 2018 in the domes c market at 60,116 units rose by 14.6%
company's domes c Car sales added up to 32,244 units, During the month, the Hero during the month against
at 106 units saw a growth of down 4.1% from 33,632 units MotoCorp commenced 52,455 units sold in November
43.2%; UV sales at 15,049 units sold in November last year. na onwide retail sales of its 2017.
grew by 0.6% and Van sales at M&HCV sales stood at 13,045 new 125cc scooter, the Des ni
1,036 units saw a growth of units, nose-diving 16.2%, 125, country's first and only Suzuki Motorcycle India Pvt
8.1% during November 2018. while LCV sales at 19,199 units, scooter to feature an idle start- Ltd (SMIPL) clocked a total
gaining by 6.3% y-o-y. stop-system (based on Hero's domes c sale of selling 53,058
Commen ng on the monthly revolu onary i3S technology). units during November 2018,
performance, Rajan Wadhera, Ashok Leyland saw its sales The Des ni 125 aims to for fy registering a Y-O-Y growth of
President, Automo ve Sector, slipping in M&HCVs at 8,260 the company's presence in the 24.2%, over the 42,722 units it
M&M Ltd, said, “We have units losing by 5.2%. While its fast-growing 125cc scooter had sold in November 2017.
registered a double-digit LCVs sales ended up with a segment.
growth in our overall sales. posi ve growth of 19.3%. The Commen ng on the sales
However, adverse macro- company's total CV sales Bajaj Auto con nued to ride performance, Satoshi Uchida,
economic condi ons have added to 12,570 units in the north with its domes c sales MD, SMIPL, said, “The
impacted the growth forecast domes c market during the of two-wheelers totaling consistent double digit growth
for the automo ve industry in month against 12, 322 vehicles 205,259 units rising by robust that we have maintained in
general. Going forward, we sold in November'17 up by 2% 44.6%. However, the November as well, is a
hope that decrease in fuel y-o-y. company exports at 141,285 tes mony to consumer trust
prices and improving liquidity units and gaining by 15.8% y- that Suzuki enjoys in India. We
will drive demand for VE Commercial Vehicles o-y stayed on high growth are confident of carrying
passenger vehicles. At (VECV) recorded sales of 3,817 trajectory. Bajaj Auto grew by forward this momentum into
Mahindra, we remain upbeat units in November 2018 (YTD 31.3% in its cumula ve sales the coming months as well,
due to our new product 38,778 units) as compared to (domes c + exports) in and achieve our sales target of
launches of Marazzo, Alturas 4,062 units in November 2017 November 2018 selling 7.5 lakh units in FY18-19.”
G4 and the upcoming launch of (LYTD 31058 units) 346,544 vehicles.
our new SUV code named represen ng a decline of 6% Overall, Suzuki Motorcycle
S201.” (YTD growth at 24.9%) On the Honda Motorcycles & Scooter India made an overall sale of
exports front, Eicher branded India (HMSI) sales during the 56,531 units (domes c +
Renault India and Nissan trucks & buses have recorded month at 394,246 vehicles in exports) as compared to
India, the other players in the sales of 785 units in November the domes c market declined 49,535 units during the
passenger segment were in 2018 (YTD 6231 units) as by 8.8% and in the foreign corresponding month last
nega ve terrain registering a compared to 665 units in market also, the company sold year, for a year-on-year growth
de-growth of 21.4% and 38.4% November 2017 (LYTD 5111 less by 12.8% y-o-y. of 14.1%, while cumula vely,
respec vely during the month units), represen ng a growth Suzuki Motorcycle India has
of November 2018. of 18%. Another two-wheeler major, achieved sales of 4,93,329
TVS Motor Company could units for April–November
In the commercial vehicles High insurance cost and low muster sales of 260,253 two- 2018 period.
segment, M&M sold 19,673 customer sen ment cast its wheelers in domes c market
vehicles in November 2018, shadow on the two-wheeler during the month, which The liquidity crunch faced by
registering a 26.5% growth. In segment as well. translated into a posi ve the retail industry, high
the M&HCVs segment, M&M growth of 28.1% compared to interests, and the rising input
sold 673 vehicles for the month. Hero Motocorp Ltd (HMCL) domes c sales of 203,138 cost and deprecia ng Rupee
M&M sold 19,000 vehicles in reported total sales (domes c two-wheelers in November leading to hike in vehicle
the LCVs segment, gaining + exports) of 610,252 units of last year. The company's purchase price may further
29.1% y-o-y. Exports for two-wheelers for the month of export of 46,889 units defer customer buying
November 2018 stood at 1,936 November 2018. The company remained on course to record decision. Auto market is likely
vehicles, a growth of 7.3%. had sold 605,270 units in the a decent double growth of to remain sluggish for some
16.7% y-o-y. more me.

fada.in | December 2018 F A D A Journal 11

India Economics

Growth Slows on Weak Consumption | Status Quo Maintained
on Benchmark Repo Rates | Inflation Falls to Record Low |
IIP Accelerates on the Back of Base Effect | Trade Deficit
Narrows but Exports Still Under Stress

GDP Growth Slows on Weak 4.7% growth in the last ghtening while no ng also pulled down by a fall in
Consump on quarter. A delayed fes ve downward surprises to the interna onal crude oil prices
season seems to have reduced infla on outlook going ahead. seen in the last two months.
Q2 GDP growth has slowed to consump on is Q2 and should Despite the slowing growth in Falling crude prices also had
7.1%. Gross Value Added reflect partly in Q3FY19. Q2FY19, the MPC maintained their second order effects
(GVA) grew at 6.9%. Key However with NBFC liquidity their FY19 GDP growth target leading to slowing transport &
Takeaways from the GDP stress, delayed effect of at 7.4%. Also, it is proposed communica on infla on at
Numbers: interest rate hikes and a hit to that all new floa ng rate loans 6.1% YoY. All components of
disposable income from high by banks shall be subject to infla on largely saw a
1. G D P g ro w t h , t h o u g h oil prices yet to show up, the external benchmarking decelera on. Core CPI (ex.
much smaller than private consump on is likely to instead of the present system Food & Fuel) grew by 5.8% YoY
consensus, hides the be subdued for the next of internal benchmarks, in Nov’18 against 6.2% YoY in
delayed business done in quarter as well. commencing April’19. Oct’18.
fes ve season which may
get reflected in the next RBI Maintains Status Quo on Infla on Falls to Record Low IIP Accelerates on the Back of
quarter. Benchmark Repo Rates Base Effect
CPI infla on went down
2. Government expenditure The Monetary Policy sharply to 2.3% YoY in Nov’18 The Index of Industrial
has supported growth Commi ee of the RBI from 3.3% YoY in Oct ’18. Produc on sped up
through both expenditure announced to keep the Headline Infla on is s ll being significantly and grew by 8.1%
and investment. Benchmark repo rate dragged down by falling food & YoY in Oct’18 up from 4.5% YoY
unchanged at 6.5%. The beverage prices, which fell by in Sept’18. The growth was
3. Core GVA (excluding Agri. commi ee maintained a 1.7% YoY against a fall of 0.1% backed by a favourable base
and Public Services) grew stance of calibrated monetary YoY in Oct’18. Infla on was effect. Mining & Quarrying
at 6.6% YoY indica ng
slower growth in both
Industry and Services.

Economic Growth probably
peaked in last quarter and is
n ow t re n d i n g l owe r.
Government expenditure
con nues to remain a source
of support for the economy as
segmental growth in industry
remains sluggish even at a
lower base.

Private consump on
expenditure grew at 7% a er
recording 8.6% growth in Q1.
Private consump on
contribu on to growth came
in at 3.8% of overall GDP
growth which is lower than

12 F A D A Journal December 2018 | fada.in

India Economics

produc on accelerated to 7% 10.8% YoY up from an posi ve growth in October. the growth in infrastructure/
YoY from 0.2% YoY in Sept. impressive 8.2% YoY in Sept. Growth was led by labour Construc on goods is s ll
Manufacturing sped up to All three components were intensive manufacturing healthy considering the
7.9% YoY up from 4.6% YoY in significantly aided by a low sectors. All sectors showed an significantly high base for the
Sept. Electricity con nued to base. 21 out of 23 industry accelera on except for segment.
be the major growth driver of groups in the manufacturing infrastructure and
the index with a growth of sector have shown YoY construc on goods. However, Trade Deficit Narrows but
Exports S ll Under Stress

India’s trade deficit for Nov’18
eased to US$ 16.7Bn from US$
17.1Bn in Oct’18. The deficit
eased as imports rose by 4.3%
YoY to US$ 43.1Bn against US$
44.1Bn in October. However,
growth in exports was at a low
of 0.8%, as they stood at US$
26.5Bn falling sequen ally
against US$ 27Bn in October.
The oil trade deficit eased to
US$ 8.4Bn in November 2018
from US$ 9.7Bn last month.
However, the non-oil deficit
rose to US$ 8.3Bn against US$
7.4Bn. Insufficient growth in
non-oil exports drove the non-
oil trade deficit.

fada.in | December 2018 F A D A Journal 13

8th february 2019

Vyapar KarnatakaOneNation | OneAssociation

Collaborate | Accelerate | Celebrate

Venue: Radisson Blu Atria Bengaluru

WHAT IS #Vyapar Tentative Event Flow
Glimpses of Previous Vyapars
Background

Commencing from the year 2000, Federation of Automobile Dealers Associations
(F A D A) has been organizing a biennial Convention of Automobile Dealers, viz. Auto
Summit at New Delhi coinciding with the Auto Expo. The Summits were a grand success as
we had the participation of 700 – 800 delegates representing dealerships, vehicle
manufacturers, oil companies, banks, insurance & finance companies and media from all
over the country and abroad. The 10th and the latest, Auto Summit witnessed more than
1,000 participants in the month of February in New Delhi.

Practically, all senior Government Ministers & officials and industry leaders have addressed
at this forum in the past on various issues, including growth prospects and attendant
challenges, human resource management, customer satisfaction, viability, relationship
management, etc. The Summit deliberations helped in creating a tremendous awakening
and identifying the challenges & opportunities for automotive business as a whole.

F A D A's aim is to make the Federation every Auto Dealer's one stop destination for any
concern related to the Automobile Retail Industry. To facilitate this in an organised way, the
Federation has started organising VYAPAR Conference in every State Chapter. By doing this,
we aim to:

• Update the dealers with upcoming changes in business dynamics

• Insulate the dealers with uncertainty and make them prepared for the future
disruptions in this ever changing environment

Thus, the birth of Vyapar, which is a miniature version of the Mega Event, Auto
Summit but in no sense diluting the connect between the host and the audience!

About #VyaparKarnataka

Vyapar Karnataka: Collaborate | Accelerate | Celebrate

The gala evening will be held in Bengaluru on Friday the 8th of February, 2019. Indian
entrepreneurship will be very different in 2020 as it evolves today. Laws, taxes, consumers and the
entire ecosystem is changing rapidly leaving the Indian entrepreneur with many questions. What is
the quantum of change expected? Why do we need to keep pace with and capitalize on the
evolution instead of just surviving? To perish, is not an option, and thriving will need new learnings.

After immensely successful previous Vyapars in New Delhi; Mumbai; Patna; Lucknow; Kolkata;
and Ahmedabad, Bengaluru will be the next destination to hold this event where we will witness
this expanse of established businessmen and women representing the state of Karnataka come
together under one roof. The evening will bring together entrepreneurs, who own and operate
the Automotive Retail business for passenger, two-wheelers and commercial vehicle
manufacturers.

It is also for the first time that F A D A is holding this conference at such a large scale in the city
known as Silicon Valley of India, i.e. Bengaluru. At this precarious juncture in the Indian
economic landscape, your presence and insights will open the doors to a new zeal, growth and
productivity which will benefit people employed by these dealerships in Karnataka. Your
presence will be the guiding light for this exceptionally enterprising group which will further
strengthen the entrepreneurial might of our nation. The evening will flow as follows:

Schedule: Vyapar will be held at Radisson Blu Atria Bengaluru on 8th of February 2019

Participants: Over 150 businessmen and women from all over India

Media Partners: Massive Digital & Offline media campaign with multiple channel partners

Structure: Vyapar will be a half day event, followed by networking dinner & cocktails.

With you we call upon the entire automotive dealer fraternity in India, an embodiment of
entrepreneurship to come together for this landmark event - Let this be a celebration of the
spirit of Indian Entrepreneurship.

8th february 2019

Vyapar KarnatakaOneNation | OneAssociation

Collaborate | Accelerate | Celebrate

Venue: Radisson Blu Atria Bengaluru

GST Update

Updates of 31st GST Council Meeting

Moving towards a simplified taxation regime

The GST Council, in its 31st cameras and video third party insurance of sin goods like air
mee ng, has pruned tax camera recorders, and goods carrying vehicles condi oners, dish
rates on 23 items in a video game consoles. has been reduced from washer, among others.
progressive step towards Also, tax rate on parts 18% to 12%.
ra onalizing and simplifying and accessories for • The council indicated
the tax structure. Tax rates on carriages for disabled The reduc on in rates is that a rate cut from 28%
seven items was slashed person has been es mated to have an to 18% on items of
from the highest slab of 28%, reduced from 28% to 5%. impact of Rs.55Bn on cement and automobile
while retaining big revenue government revenue. components would have
implica on items such as a revenue impact of
cement, automobile Of the 228 goods that INR330b and the council
component and luxury or sin were under the highest feels it to be very steep
items in the highest slab. The tax slab when the GST decline at the moment.
reduc on in taxes is was introduced, only 28
es mated to have an impact items will remain under Ease of compliance – filing
on government revenue to 28% slab a er the latest deadline extended
the tune of ~Rs. 55Bn. The rate cut. These primarily
council also introduced include high revenue • The GST Council has
implica on items such as deferred the deadline
melines for new return cement (8 items), for annual return and
filing system and extended automobile component GST audit report filing ll
deadlines for GST annual (13 items) and luxury or June 2019. The
return and audit report to meframe for new
facilitate ease of compliance return filing system will
burden. be April 1, 2019 on trial
basis and to be
Overhaul in GST Rates implemented
mandatorily by July 1,
• In the GST Council • 2019.

mee ng held on 22nd Group of Ministers (GoM) to
analyze devia on in target
December 2018, the revenue collec on

rates for various goods • Furthermore, taxa on • • The GST Council has
have been pruned on selected items in a approved forma on of
few other tax slabs (18%, 7-member GoM to study
including seven items 12% and 5%) has been the revenue trend,
lowered. Amongst including analyzing the
from highest tax slab. others, GST rate on reasons for structural
cinema ckets up to pa erns affec ng
• The seven items which INR100 will now a ract revenue collec on in
were moved from 28% to 12% against 18% earlier some states and
18% are pulleys and and ckets over INR100 devia on from revenue
transmission sha s, will a ract 18% against collec on targets.
monitors and TVs of up 28% earlier. Likewise,
to 32 inches screen size,
re-treaded rubber tyres,
Power banks, digital

16 F A D A Journal December 2018 | fada.in

Perspective

Automotive Retail 2030

Evolution of dealerships and potential new roles in retail
Emerging Trends in Automotive Retail

Accelera ng pace of disrup ve innova on and changing customer preferences will drive the shi in the way
automo ve retail and a er-sales businesses operate

These emerging trends are causing automo ve retailers to rethink their current business models and undergo
significant transforma on in order to remain relevant and viable over the next decade.

fada.in | December 2018 F A D A Journal 17

Perspective

Traditional Dealerships Continue to be Important

Tradi onal dealerships con nue to be important with first visits being the most crucial and sales personnel playing a
prominent role.

Automo ve retail is an even larger role in customer. Most OEMs lack the Further, a majority of the
undergoing a significant managing the customer necessary people, processes, customers prefer visi ng a
transforma on with journey and experience. This, technology and, most dealership to take a test drive
increasing digitaliza on, however, does not dilute the importantly, the seller mindset and conclude the vehicle
evolu on of mobility-as-a- role that a dealership plays — to make the shi from a purchase. Dealerships remain
service and with OEMs taking linking the OEM and the wholesaler to a retailer. cri cal for customers.

The first visit to the dealership is crucial for the customer purchase decision and the sales representa ve plays a
cri cal role.
Dealers need to ac vely increase their online
presence and op mize their efforts on tradi onal
marke ng channels.
Digitaliza on has reduced the need to contact the
dealer in the first instance. Customers are able to
quickly interact and easily access informa on
across media & devices. Over me, the average
number of customer visits to dealers before buying a
car has dropped considerably, as most customers now
visit the dealership only to close the vehicle purchase.

18 F A D A Journal December 2018 | fada.in

Perspective

Dealerships need to focus on impar ng new skills and exploring crea on of new roles to align with the changing
industry dynamics.

Sales representa ves hold prominence for not only
closing sales with willing customers but also
persuading unwilling customers. As per our survey,
lack of social skills in a salesperson is the biggest
barrier to successful sales, followed by brand image
and price. While visi ng a dealership, customers
consider service orienta on and exper se of the
salesperson as most cri cal. The salesforce needs
the relevant skillset to stay impac ul.

Dealership and sales agents can significantly influence the purchase decision of a brand-neutral customer. Our survey also
found that the skills and exper se of the salesperson and a sophis cated ambience in the dealership are posi ve influences.

Retailers Need to Embrace Digitalization

Introducing digital would help in both enhancing and understanding the customer experience journey.

However, most dealers do not most mes there is a wide gap interven ons across the need to employ an integrated data
plan to invest in increasing between the dealer ’s customer life cycle. It will not management strategy managed
their presence online. percep on of their current only define and iden fy the byadatascien st.
ini a ves and the actual poten al of different customer
Tradi onal marke ng con nues customer experience. segments, but also support It will break silos across the
to be vital as it requires less acquisi on of new customers, organiza on and aggregate
cogni ve effort to process Data analy cs can reduce such and improve customer customer data from mul ple
than the digital feed. Dealers inefficiencies by driving fact- experienceandloyaltyquo ent. sources such as CRM, dealer
spend a significant amount to based decision-making. management systems, third-party
acquire customers; however, Analy cs can support To op mizedata analy cs,dealers sources,etc.,toasinglepla orm.

Dealerships need to embrace digitaliza on and create a holis c digital and social media strategy covering the
en re customer purchase journey.

fada.in | December 2018 F A D A Journal 19

Perspective

While some of the OEMs, cap ves, brokers or special concept companies are excelling at the online purchase journey,
dealers have not aligned resources in this direc on yet

Today’s technology permits exhibited by leading online different channels such as including “bring” services
implemen ng the en re vehicle sales portals: videos, chats and texts
customer journey online, • Purchase phase: provides
offering a faster and easier • Informa on phase: • Considera on phase: flexibility & access to reserve
buying process while also enhances the customer provides the customer an a vehicle online (without any
enhancing trust and quality. experience with digital tools interac ve 3-D view, 360- charges or with short-term
to help select a product degree videos and a virtual online credit), allows for
According to an exercise based on select reality experience; allows virtual docs with e-sign,
conducted by EY around online requirements while comparison of vehicle provides preferred mode of
vehicle sales, below are some providing product and sales financing products and car delivery with real- me
of the best-in-class features process informa on via booking test drives, status

Vehicle financing will con nue to hold dominance in customer life cycle and could move to the front, providing
informa on on affordability, upgrades and subscrip on op ons.

20 F A D A Journal December 2018 | fada.in

Perspective

Emergence of New Roles in Automotive Retail to Align with Changing Industry
Dynamics and Customer Expectations

Specialized staff along the customer journey is cri cal to provide an excep onal brand experience and outdates the
employment of tradi onal sales agents.

Dealership staff has a las ng impact on customers’
percep on of the automo ve OEM. The salesforce
plays an important role not only in retaining the 70%
of buyers who intend to buy at the first-visited
dealership, but also in persuading the 30% of buyers
who did not intend to buy in the first place. Therefore,
it is impera ve for the sales personnel to gain
customers’ trust and manage their experience
throughout the purchase journey. Rising complexity
of retail opera ons & customer needs is rendering
the tradi onal roles obsolete. Dealerships need to
upskill exis ng staff & addi onally deploy specialized
staff to stay relevant in the evolving ecosystem.

This new job por olio works for divergent customer groups while ensuring a seamless customer experience across all channels.

The above job por olio & mobility solu on advisor) and ensure an excep onal customer facing customers, in others the
comprises both completely new adapta ons of exis ng roles experience throughout the idea is to work in the
roles (such as digital to physical (such as greeter 2.0, OE and purchase journey. Also, while background and support the
lead specialist, crea ve director sales consultant expert), to some roles exclusively include front-end staff.

fada.in | December 2018 F A D A Journal 21

Survey & Studies

Luxury Car Buyers Strongly Engaged
throughout Purchase Process, J D Power Finds

Mercedes-Benz Ranks Highest

Luxury car buyers in India Following are key findings of (overall sales sa sfac on from 250 new-vehicle owners
are deeply involved in the the study: scores of 976 and higher), 97% who purchased their vehicle
pre-purchase shopping say they “definitely will” from September 2017 through
process, according to the J D • Luxury car buyers rely on recommend their purchase to August 2018.
Power 2018 India Sales recommenda ons from family and friends, compared
Sa sfac on Index (Luxury) friends/ rela ves for with only 62% of highly The study examines six factors
Study released on December purchase decision: Nearly dissa sfied customers (score that contribute to overall
6. The pro-ac veness of these two-thirds (61%) of buyers of 848 or lower). customer sa sfac on with
buyers to be be er informed rely on friends and family their new-vehicle purchase
requires dealership staff to be as their primary source of Study Rankings experience in the luxury
more prepared in interac ng informa on while market. In order of impact on
with these customers. deciding on the vehicle Mercedes-Benz ranks highest overall sales sa sfac on,
brand or model to in sales sa sfac on, with a those factors are dealership
More than one-fourth (28%) of purchase. score of 903. BMW ranks facility (22%); delivery process
luxury car buyers shopped second with 900, while Audi (21%); dealer sales consultant
around for other models • High usage of digital ranks third with 888. (20%); paperwork comple on
before making a purchase devices: The majority (17%); working out the deal
decision, with 65% of them (83%) of buyers indicate The 2018 India Sales (15%); and dealership website
using the internet as one of that their sales consultant Sa sfac on Index (Luxury) (4%).
their key informa on sources. used a digital device. Study is based on responses
Furthermore, 49% of luxury Tablets are the most
car buyers contacted the commonly used device Sales Sa sfac on Index Ranking
dealer directly prior to their (66%), with overall
first physical visit of the sa sfac on highest (Based on a 1,000 point scale)
dealership and 52% of these among buyers whose
buyers compared prices of the consultant used a tablet Mercedes 903
same model across mul ple during their sales’ Benz
dealerships. experience (910 on a
1,000-point scale). BMW 900
“Strengthened engagement
during the shopping process • Problems with clear Luxury 898
from luxury car buyers brings communica on of pricing Average
with it the need to transform the and paperwork: With more
role of the tradi onal sales than one-fourth of customers Audi 888
consultant from being solely experiencing problems
transac onal to one of being across specific issues, such as
advisory,” said Kaustav Roy, clarity on pricing, paperwork
Regional Director Automo ve and addi onal item
P ra c c e at J D Powe r. purchases—dealerships
“Dealerships that are able to need to train their staff to
drive this change among their provide clear and correct
teams will likely be able to create informa on regarding such
a more engaging experience, topics.
thereby influencing word-of-
mouth recommenda ons and Advocacy and loyalty improve
brand loyalty.” with sales sa sfac on: Among
highly sa sfied customers

22 F A D A Journal December 2018 | fada.in

Dealership Profitability

Dealership Solutions: Dealer Pain Points and
How To Overcome Them?

Working at a dealership, “Other dealerships might have Nothing is truly known about surveys, e-mails & newsle ers
there’s no doubt that simple trade-in tools on their thecustomerortheirinten ons. coming from dealerships.
you’ll come across TONS of big websites, but many of these
wins. Of course, dealership life tools don’t provide customers As previously men oned, Web While there isn’t anything
also isn’t without its with the opportunity to really Engagement requires contact inherently wrong with using
aggrava ng challenges. have a two-way conversa on.” informa on, but it also asks third-party vendors, many of the
Perhaps your dealership isn’t prac cal ques ons about tools customers are exposed to
ge ng as much foot traffic as And in addi on to ge ng the purchasing me frame, don’t possess the dealership’s
you’d like. Or, maybe you feel results & informa on they were budget, and desired vehicle. logos and slogans. That and they
like you’re being “strung looking for, consumers are certainly don’t provide the
along” by customers who are presented with other op ons In fact, trade appraisal leads customer with a unique,
just casually browsing and who that push them further down can deliver 5x the consumer personalized experience.
don’t have a sincere desire to the purchasing funnel: credit informa on to sales in order to
purchase a vehicle. applica ons, test drive successful convert into an Up. In order to remain top-of-mind
scheduling, and so on. In a This informa on gets to your customers, you’ll want
These types of issues can be nutshell, the more incen ves delivered to your CRM, which stray away from using 3rd
tricky to resolve, but they are provided & the more accessible can then be filtered through to party brands to facilitate a lot
NOT impossible to overcome. your tool is, the more leads find the most interested of the heavy li ing. If a
you’re bound to collect. shoppers. customer using your
Here’s a list of 4 common dealer dealership’s Trade Appraisal
pain points that dealers face 2. YOU’RE GETTING THE 3. YOU AREN’T GETTING tool to get a quote of their
and how they can be resolved. WRONG KINDS OF LEADS ENOUGH CONVERSIONS vehicle, you want the same
imagery, logos and slogans as
1. YOU’RE NOT GETTING One of the other biggest Along with not procuring the ones found on e-mails,
ENOUGH LEADS problems dealerships face is enough quality leads, many targeted display ads and direct
that they’re a rac ng the dealerships are o en mail. Brand recogni on is
Believe or not, this is probably “wrong” kinds of leads. By confronted with low conversion crucial for ge ng customers to
the most common issue that wrong lead, of course, I don’t rates. That means the few shop with your dealership.
many dealerships face. mean that they aren’t quality leads you DO have
Dealership websites o en get completely capable of making o en don’t convert into sales. The more you personalize the
a substan al amount of traffic; a vehicle purchase at your follow-up call to align with a
but alas, most dealerships in dealership. When the “wrong “If you focus your a en on on car buyer’s budget, desired
don’t even convert 97% of that types of leads,” that o en high-intent leads, you’ll be vehicle and offers, the more
traffic. Needless to say, that means the casual browsers – able to provide plausible likely it’ll be to convert them
number is HUGE! folks who really don’t have any solu ons to issues they might into a paying customer.
real intent to shop in the near experience during the car
While this is clearly cruddy or even distant future. buying process.” Addi onally, if you focus your
news for most dealerships, this a en on on high-intent leads
doesn’t have to be the case for If you’ve followed up or crossed To combat this trying issue, (Meaning they plan
you. Other dealerships might paths with these types of your sales persons will need to purchasing a vehicle in the
have simple trade-in tools on customers, you realize how effec vely respond to prospec ve near future), you’ll be able to
their websites, but many of much of a waste of precious customers based on the lead provide plausible solu ons to
these tools don’t provide energy this could be. Many of informa on in your CRM. issues they might experience
customers with the opportunity these types of leads might be during the car buying process,
to really have a two-way generated by sta c lead forms 4. THIRD PARTY DEPENDENCY like car value, financing,
conversa on. There’s no real that collect very limited special offers, etc. The more
opportunity for consumers to informa on – like an e-mail The last pain point we’ll be informa on you can provide to
engage and learn a li le a d d re s s , p h o n e n u m b e r. discussing has to do with third- steer the customer in the
something about themselves. party dependency. O en “buying” direc on, the be er.

mes, third-party vendors will
host many of the online tools,

fada.in | December 2018 F A D A Journal 23

Judgement

Delhi High Court and Hon’ble Supreme Court Jugdements on Handling Charges
in favour of Automobile Dealers

If the vehicle dealers are providing any extras in terms of services, goods, fuel etc. to the purchasers and the purchasers agree to
pay therefor, in the absence of any law to control the same, this Court cannot issue any direc on with respect thereto.

HON’BLE JUDGE This pe on filed in public 3. The respondent No. 2 i.e. give an undertaking to the
MR RAJIV SAHAI interest avers that the the Transport Department of Government as under:
ENDLAW various authorized car dealers GNCTD in its counter affidavit
in Delhi impleaded as has stated: “a. We will not charge not
C Rajaram, Advocate & respondents No.3 to 70, who more than the price of
Anr - Petitioners have also been authorized to (i) That the erstwhile system the vehicle and
Through: Mr Amit register the vehicles sold by of registra on of vehicles registra on charges
Khanna, Advocate them, are in viola on of the under the Motor Vehicles and road tax etc.
instruc ons / guidelines of the Act, 1988 and Delhi Motor
Versus respondent No.2 Transport Vehicles Rules 1993 at the b. We will not charge
Department, GNCT of Delhi in select few offices of any other charges /
GNCT of Delhi & Ors - coercing the purchasers to pay Motor Licencing fee like handling
Respondents amounts over and above the Authori es was changed charges / service
Through: Mr N Waziri, registra on charges which in the year 1996 for the charges."
Advocate for GNCTD. they have been authorized to convenience of the public
collect. No ce of the pe on by permi ng the vehicle (v) That the said dealers are
Mr Sandeep Sethi, Sr was in the first instance issued dealers to register the required to charge a tax
Advocate with Mr Vipin to the respondent No.1 vehicles under Rule 30(2) on all motor vehicles
Singhania, Advocate for GNCTD and the respondent of the Delhi Motor under Sec on 3 of the
applicant/intervener. No.2 Transport Department Vehicles Rules; Delhi Motor Vehicles
only and they were directed to Taxa on Act, 1962 on the
Date of Decision: 20th inform whether such prac ce (ii) Accordingly 124 vehicle cost of manufacturing and
April, 2012 existed and if so, the steps dealers were given excise duty plus sales tax
being taken to curb the same. licences under Rule 35 of of the motor vehicle
W P (C) No. 8408/2011 Central Motor Vehicles without allowing any cash
2. Upon the counsel for the Rules, 1989 to register the or trade discount;
respondents No.1 & 2 not vehicles on behalf of the
ge ng any instruc ons, the Transport Department of (vi) That in addi on, the
personal appearance of the GNCTD; dealers are also to collect
Commissioner (Transport) and the registra on fee under
Deputy Commissioner (iii) T h i s h a s r e s u l t e d i n Rule 81 of the Central
(Opera ons) was directed. immense convenience for Motor Vehicles Rules,
Though no no ce to the other the vehicle buyers in 1989;
respondents was issued but registra on of the
the Automobile Traders vehicles; (vii) That the dealers are also
Associa on of Delhi stated to to collect the municipal
be represen ng most of the (iv) That the said dealers are parking charges as
car dealers/ car manufacturers not to charge the vehicle specified in F13/01/
impleaded as respondents registrants any amount 2003/UD/4941/1026
No.3 to 70, applied for more than the price of the dated 12.07.2006;
interven on and was allowed vehicle registra on
to intervene. charges and road tax etc. (viii)That the department has
and are required to and been taking out public
no ces cau oning the

24 F A D A Journal December 2018 | fada.in

Judgement

public as under: is bound to have the vehicle services of registra on and connec on with sale and
registered through the dealer which the dealers are not which the respondents
"All intending buyer of from whom he is purchasing en tled to charge, the dealers No.1&2 are not empowered to
vehicles are also further the vehicle or has the liberty to deny the extras to be on control / regulate. No ce may
advised not to pay any have the vehicle registered account of providing the also be taken of the fact that in
service / handling / from the office of the licencing services of registra on and today's day of aggressive
miscellaneous charges, authority. We are told that claim the same to be on other marke ng of vehicles and
etc. apart from taxes / there is no such binding and it accounts. The respondents mul farious choices available
fees men oned above for is open to the purchaser of No.1&2 as aforesaid have no to the purchasers / consumers,
registra on of their vehicle to not register the authority to intervene in the the vehicle dealers giving
vehicles." vehicle through the dealer charge by the dealers even if discounts are not unknown (as
from whom he has purchased illegal of the said extras so long also evident from the
4. The Automobile Traders the vehicle but register it with as they are not on account of respondents No.1&2 making a
Associa on of Delhi in their the Office of the Licencing commission or for providing provision (supra) to that
counter affidavit have stated Authority. service of registra on. The effect) and it is generally seen
that the dealers are charging said ques on thus becomes a that the purchasers of vehicles
the registrants only the 7. We have next enquired as ques on of fact to be are in a bargaining posi on
registra on fee, road tax and to what is the locus / authority adjudicated on a case to case with the dealers. If the vehicle
municipal parking charges / right of the Transport basis and no general direc on dealers are providing any
(supra); that the handling Department of GNCTD to with respect thereto can be extras in terms of services,
charges / logis c charges to intervene in the transac on issued in this public interest goods, fuel etc. to the
which objec on is taken by the between the vehicle dealer li ga on. The pe oners who purchasers and the purchasers
appellant are not related to and the purchaser of a vehicle are themselves advocates agree to pay therefor, in the
registra on of vehicles but are and qua the charges / price have of course demonstrated absence of any law to control
towards stockyard services / which may be charged by the that upon the pe oners the same, this Court cannot
warehousing charges, driving dealer. No authority / locus of issuing legal no ce in this issue any direc on with
costs in terms of fuel the respondents No.1 and 2 in regard a par cular dealer has respect thereto.
consumed and people this regard has been shown. refunded the amount so
engaged, fuel given following claimed but the same cannot 11. We accordingly dispose of
delivery, transit risk insurance 8. The respondents No.1&2 be indica ve of any illegal this writ pe on with the
from stockyard to dealer's Transport Department / prac ce being followed and direc on that in the event of
showroom, polishing and / or Government of Na onal cannot lead to a general the respondents No.1&2
waxing and towards other Capital Territory of Delhi direc on. It is well nigh Transport Department /
handling costs and have (GNCTD) while empowering possible that considering the Government of Na onal
nothing to do with the the vehicle dealers to also meager amount involved, that Capital Territory of Delhi
collec on by the said dealers register the vehicles are to par cular dealer may not have (GNCTD) receiving any
of the registra on fee, road tax only ensure that no service wanted to ba le with an complaint of any vehicle
and municipal parking charges, commission etc. 'for advocate and chose to refund dealer charging anything extra
charges. such registra on' are charged the amount. / commission from the vehicle
and the respondents No.1&2 purchaser for providing the
5. The pe oners have filed otherwise are not concerned 10. T h e u n d e r t a k i n g s services of registra on, the
a rejoinder controver ng the with the transac on of sale by aforesaid obtained by the respondents No.1&2 shall
averments in the counter the dealer to the purchaser. respondents No.1&2 Licencing enquire into the said
affidavit of the intervener. Authority from the dealers complaint and if find any merit
9. T h e p o s i o n w h i c h though being widely worded, therein, shall take ac on in
6. W e h a v e h e a r d t h e emerges is that while the cannot come in the way of the accordance with law against
counsels for the par es. We pe oner avers that the dealers charging the extras for such vehicle dealers.
have at the outset enquired 'extras' so charged by the extra services rendered in
whether purchaser of a vehicle dealers are for providing the No order as to costs.

fada.in | December 2018 F A D A Journal 25

Judgement

Item No. 27 Court No. 1 Sec on XIV

SUPREME COURT OF INDIA

Record of Proceedings

Pe on(s) for Special Leave to Appeal (C) No.(s). 26209/2012
(Arising out of impugned final judgment and order dated 20/04/2012 in WP (C) No. 8408/2011 passed by the High Court of Delhi at New Delhi)

C Rajaram & Anr - Pe oner(s)

Versus

GNCT of Delhi & Ors - Respondent(s)

(With applica on(s) for direc ons and office report)
Date: 05/01/2017 | This pe on was called on for hearing today.

Coram: Hon’ble Chief Jus ce
Hon’ble Mr Jus ce N V Ramana
Hon’ble Dr Jus ce D Y Chandrachud

For Pe oner(s) For Respondent(s)
Mr Joseph Aristotle S, Advocate
Mr C Rajaram, Advocate Mr Maninder Singh, ASG
Ms Sashi Panwar, Advocate Mr P K Dey, Advocate
Ms Priya Aristotle, Advocate Mr S W A Qadri, Advocate for Mr M K Maroria, AOR
Ms K Priyadarshini, Advocate Mr Ankur Prakash, Advocate
Mr Ashok Mathur, Advocate
Upon hearing the counsel the court made the following: Mr R Sudhinder, Advocate
Ms Prerna Amitabh, Advocate
Mr Devmani Bansal, Advocate
Ms Jagri Ahuja, Advocate for Mr Gagan Gupta, AOR
Mr T Sunder Ramanathan, Advocate for Mr M P Devanath, AOR
Mr A K Mathur, Advocate
Mr Shekhar Kumar, Advocate
Mr Ashish Chauhan, Advocate
Ms Gargi Jha, Advocate
Mr S S Shroff, Advocate
Mr Vipin Singhania, Advocate
Ms Manjula Gupta, Advocate

ORDER

Having perused the impugned order passed by the High Court, we find no jus fica on whatsoever to interface with the
same, in exercise of our jurisdic on under ar cle 136 of the Cons tu on of India.

The special leave pe on is accordingly dismissed.

Pending applica on, if any, also stands disposed of.

(Renuka Sadana) (Parveen Kumar)
Assistant Registrar AR-CUM-PS

26 F A D A Journal December 2018 | fada.in

Consumer Case

National Consumer Disputes Redressal
Commission, New Delhi

MR PREM NARAIN, Consumer Protec on Act, 1986 – Sec on 21- The Respondent No. 1 / Complainant
Presiding Member purchased the vehicle - Maru Swi ZXI on 05.08.2005 from the Pe oner – The
complainant filed a complaint before the Consumer Dispute Redressal Forum, North Goa,
Chowghule Industries alleging that the vehicle had defects and was not func oning properly – The Opposite
Ltd & Anr – Petitioners Par es were proceeded ex-parte and the district forum passed ex-parte order dated
15.07.2010 direc ng the Opposite Par es to repair the car and to replace the parts if needed
Versus – Complainant not happy with the orders passed, preferred an appeal, which allowed the
appeal and directed the OPs to pay compensa on equal to half the value of the car price,
Shivanand S interest and costs etc. – Aggrieved with the order, OPs filed the above revisions – Heard the
Harapanahalli & Ors – counsels, perused the record and the documents – a er considering the evidence and the
Respondents documents filed it is held that the order passed by the State Commission is without any
equi es and modified to the extent that the compensa on payable to the Complainant
Revision Petition No 2366 would be only Rs. 1,00,000 along with 5% interest and costs of Rs. 10,000 – The order of the
and 2367 of 2012 State Commission as modified by this order be complied with by the Pe oner within a
period of 45 days – Revision Pe on is disposed of with modifica ons.
Decided on 28.09.2018
Important Point - When there is material irregularity in the orders passed by the state
(Against the Order dated commission, the same can be ques oned by invoking the revisional jurisdic on.
27.03.2012 in FA No. 21/2010
of the State Commission
Goa Panji)

Prem Narain, Presiding opposite par es were the said sum is not paid to the
Member -These above proceeded ex-parte and the complainant within 30 days, it
Revision Pe ons have been District Forum passed ex-parte shall carry interest at the rate
filed by the Pe oners M/s order dated 15.07.2010 of 9%, un l payment. In other
Chowgule Industries Ltd and against the opposite par es words the complainant shall
Maru Suzuki India Ltd against and directed opposite par es retain the car without
the order dated 27.03.2012 of to repair the car and to replace returning it at half the price.
the State Consumer Disputes the parts if needed. Not Complainant would be en tled
Redressal Commission, Goa sa sfied with the order of the to Rs. 10,000 being the cost of
Panji, (in short 'the State District Forum, the the complaint as well as this
Commission') passed in FA No. complainant preferred an appeal and another sum of Rs.
21 of 2010. appeal bearing No.21/10 30,000 for loss of me, tension
before the State Commission. and inconvenience. The
2. Brief facts of the case are The State Commission allowed appeal and the complaint shall
that the respondent No.1/ the appeal vide its order dated stand allowed on the above
complainant purchased the 27.03.2012 as under:- terms. The sums herein
vehicle Maru Swi ZXI on ordered to be paid shall be paid
05.08.2005. The complainant "26. I n o u r v i e w , t h e by OPNo. 1 and 2 jointly and
filed a complaint before the complainant could be suitably severally."
Consumer Dispute Redressal compensated by direc ng O.P.
Forum, North Goa, (in short Nos.1 & 2 to refund to the 3. H e n c e , t h e p r e s e n t
the 'District Forum') that the complainant half the purchase revision pe ons.
vehicle had defects and was price i.e. Rs.2,44,000 within a
not func oning properly. The period of 30 days and in case, 4. Heard the learned counsel

fada.in | December 2018 F A D A Journal 27

Consumer Case

for the par es and perused the "25. There is no dispute that order of the State Commission replaced the clutch system as
record. the complainant has otherwise is arbitrary and without any would be clear from job card
been using the car in ques on reasoning and the same is dated 13.02.2007. Even if any
5. Learned counsel for the and as on 13/8/07 within a liable to be set aside. manufacturing defect was
pe oner M/s Chowgule span of two years the there, the liability of the
Industries Ltd stated that the complainant's car had run 8. Learned counsel for the opposite par es would only be
complainant had filed only two about 37,548 kms, thereby pe oner further argued that limited to the replacement of
job cards. The first card is giving a yearly average of the defect in the clutch is the defec ve part and that
dated 13.02.2007 and second 18,774 kms. We are almost reported for the first me a er responsibility was already
job card is dated 12.06.2007. seven years hence and the about more than one year and discharged by the opposite
The vehicle was purchased on complainant's car must have that is why the complainant party on 13.02.2007.
05.08.2005 and there were done by now about over filed the job cards dated
many job cards available with 1,30,000 kms or thereabout 13.02.2007 & 12.06.2007 only 9. Learned counsel for the
the complainant, but he did and in such situa on, in our along with complaint, though other pe oner M/s Maru
not file the same before the view, the complainant would the complainant says that he Suzuki India Ltd stated that she
District Forum because in not be en tled to, a er such alleged malfunc oning of the agrees with the arguments
those job cards nothing is extensive use of the car, either clutch right from the very advanced by the learned
men oned about the for replacement of the car by beginning. This asser on of counsel for M/s Chowgule
complaint of the clutch. new car or the return of its the complainant is not Industries Ltd There was no
Learned counsel stated that IA price as contemplated by supported by any document manufacturing defect in the
No.4974 of 2017 has been filed clauses (b) & (c) respec vely of prior to job card dated vehicle and no deficiency can
for taking these job cards on sub sec on 1 of sec on 14 of 13.02.2007. Had there been a be a ributed to the
record and therefore, the the C P, Act, 1986. One may manufacturing defect, manufacturer Maru Suzuki
same may be allowed. tend to argue that the complainant could have India Ltd
complainant had no choice. reported the malfunc oning
6. Learned counsel further May be but the extensive use of the clutch while ge ng free 10. On the other hand, the
pointed out that the District certainly is a factor to be taken services or other services from complainant/respondent No.1
Forum has allowed the note of at the me of assessing t h e d e a l e r. T h e S tate in person stated that the
complaint and had only the compensa on payable. Commission has also observed defect in the clutch was
directed the opposite par es The complainant needs to be that the vehicle has run about observed from the very
to repair the vehicle and to compensated for having had to 37,000 kms in two years and beginning and it was reported
replace the parts if required. use a car which makes a noise therefore, the State to the dealer many mes and
Though the pe oner was ex- while shi ing the gears. Commission assumed that by a er every service the defect
parte before the District Equi es of the case for the me the ma er was con nued and when the
Forum, however, the replacement or refund of price argued before the State defect was not removed even
pe oner did not prefer any are not in favour of the Commission, the vehicle may a er the alleged replacement
appeal because pe oner was complainant." have run about more than of the clutch, the complaint
ready to repair the vehicle as I,00,000 kms. Learned counsel was filed. The State
per the order of the District 7. From the above argued that this itself proves Commission has considered all
Forum. The complainant observa on of the State that there was no the objec ons raised by the
preferred an appeal against Commission, it is clear that in manufacturing defect. Had learned counsel for the
the order of the District Forum the body of the judgment, there been any manufacturing pe oners and has passed a
before the State Commission State Commission has not defect, the vehicle would not reasoned order allowing 50%
and the State Commission has found any ground to allow the have run so much of the kms. of the cost of the vehicle as
granted compensa on to the appeal, however, in the final The complainant had also not compensa on. It was stated
complainant equal to 50% of opera ve por on of the order filed any other service report that the State Commission has
the cost price of the vehicle. the State Commission has or the job card a er filing of only presumed that the
On the one hand, the State allowed huge compensa on the complaint to prove that vehicle would have run more
Commission has observed the equal to 50% of the cost of the the clutch system was s ll than 1,00,000 kms. However,
following in its order dated vehicle without giving any malfunc oning. In fact, the the fact is that the vehicle ll
27.03.2012 as under:- reason for the same. Thus, the opposite par es had already today has run only about

28 F A D A Journal December 2018 | fada.in

Consumer Case

87,000 kms. The complainant par es and have examined the must have been problem with allow the compensa on of Rs.
is anyhow carrying the record. It is true that the the clutch system of the 1,00,000 (rupees one lakh
defec ve vehicle and complainant has only filed two vehicle and that is why the only) to the complainant by
obviously has been deprived job cards dated 13.02.2007 & opposite par es replaced the the opposite par es.
of comfort of a new vehicle. 12.06.2007 and this goes to clutch on 13.02.2007. In a
show that the problem in way, this proves part of the 13. Based on the above
11. Respondent/ complainant clutch was reported only a er case of the complainant. As discussion, the order dated
further argued that there was a year or so and the clutch was the complainant has not filed 27.03.2012 passed by the
enough opportunity for the changed as is clear from job the earlier or subsequent job State Commission is modified
pe oners to file documents card dated 17.6.2007. Then it cards, from the evidence it is to the extent that the
that are being filed along with IA was not a manufacturing not clear whether the compensa on payable to the
No.4974 of 2017 before the defect, the District Forum complaint of the complainant complainant would be only Rs.
State Commission. However, ordered repair of vehicle and is s ll con nuing in respect of 1,00,000 along with 5%
the pe oner chose not to file replacement of the defec ve the clutch system of the interest per annum from the
them there. Now, that the order parts if any. The complainant vehicle. However, it is clear date of order of the State
has been passed against the did not take the vehicle for that the vehicle has run about Commission ll actual
pe oners by the State repairs, instead he preferred more than 80000 km, if not payment instead of 50% of the
Commission, the pe oners appeal before the State more than 1,00,000 kms as price of the car along with 9%
want to file certain new Commission. On one side the observed by the State p.a. interest as awarded by the
documents. There is no State Commission observed Commission. It is obvious that State Commission. Order for
provision to take fresh that the complainant did not the complainant could not payment of Rs. 30,000 is also
documents at the stage of have any case on merits, reap the benefit of new car set aside. Order in respect of
revision pe on. The whole however, the State and had to carry on with a the cost of the complaint of Rs.
revision pe on is based on the Commission has s ll ordered defec ve car, even if it was not 10,000 is maintained. The
new documents which were not the compensa on equal to a manufacturing defect. In order of the State Commission
part of the record of the fora 50% of the cost of the vehicle these circumstances, I am of as modified by this order be
below and thus the revision to be paid to the complainant the view that the complied with by the
pe on is prima facie not by the opposite party. No compensa on awarded by the pe oners within a period of
maintainable and deserves to be specific grounds have been State Commission cannot be 45 days.
dismissed only on this ground. given by the State Commission sustained and needs to be
for awarding for such a he y modified in the light of the 14. Revision Pe on No.2366
12. I have given a though ul compensa on to the discussion made above. In the of 2012 and Revision Pe on
considera on to the complainant. On the other facts and circumstances of the No.2367 of 2012 stand
arguments advanced by the hand, it is also true that there case, I deem it appropriate to disposed of in terms of the
above order.

Attention: Members

Engagement of GST Consultant

A GST consultant – Ms Puloma Dalal, FCA based in Mumbai, has been engaged by F A D A on retainership to help members deal with
the complexi es of GST law and procedures. She will, on reference made by F A D A, guide and give legal opinion on various issues
rela ng to GST as applicable to automobile dealers.
F A D A will forward the queries raised by members to Ms Puloma Dalal for her opinion.
While Ms Puloma Dalal will, essen ally, give legal posi on and clarifica on, supported by cash law, on various GST issues raised
F A D A Members, those wan ng to engage her as counsel to fight their cases in li ga on, will have to pay separately as per terms that
may be mutually agreed to.
Member seeking clarifica on or legal posi on rela on to GST as relevant to automobile dealer, may send their queries to Federa on
of Automobile Dealers Associa ons (F A D A), 804-805, Surya Kiran, 19, K G Marg, New Delhi – 110 001. (E-mail Id: [email protected]).

fada.in | December 2018 F A D A Journal 29





Membership

MEMBERSWE WELCOME OUR NEW

No. Dealer Principal Name Dealership Name City State Franchise

1 Mr Venkat Goli Mango Motors Visakhapatnam Andhra Pradesh Hero

2 Mr Parth Agrawal Sadhana Auto Agencies Pvt Ltd Siwan Bihar Bajaj Auto

3 Mr Hemang Bha Uday Autolink Pvt Ltd Ahmedabad Gujarat Maru

4 Mr Pra k I Kavathia Dwarkesh Auto Modasa Gujarat HMSI

5 Mr Ankur Gandhi Apple Automo ve Vadodara Gujarat HMSI

6 Mr Jiten Gandhi Labh Autolink Porbandar Gujarat HMSI

7 Mr M R Ramchandani B Mangatram & Co Gandhidham Gujarat M&M

8 Mr Vishnukumar K Patel Shivalik IB Autogem Pvt Ltd Ahmedabad Gujarat Hyundai

9 Mr Mahesh Bhai Patel Shivam Sales Corpora on Palanpur Gujarat M&M

10 Mr Rakesh C Bakaliya Amber Automobiles Dahod Gujarat M&M

11 Mr Anil S Patel Shree Sai Motors Godhra Gujarat HMSI

12 Mr Nandish B Prajapa Sarthi Auto Patan Gujarat Hero

13 Mr Ashok Patel Jai Ganesh Auto Care Pvt Ltd Morbi Gujarat Hero

14 Mr Krishna Bhalo a Bebbco Commercial Vehicles Pvt Ltd Jamshedpur Jharkhand Bharat Benz

15 Mr P K Sreenivasan Balaji Auto Enterprises (Mysore) Pvt Ltd Mysore Karnataka Toyota

16 Mr Ganapathi Pai Pai Sales Pvt Ltd Mangaluru Karnataka Suzuki

17 Mr Riyazahmed A Nadaf Shrine Auto Pvt Ltd Kolhapur Maharashtra Skoda

18 Mr Pritesh Pramod Shah Jitendra Wheels (N) Pvt Ltd Nashik Maharashtra Chevrolet

19 Mr A L Nagarajan Sri Sairam Autos Gobiche pallayam Tamil Nadu Bajaj

20 Mr Sushil Mehta Jain Cars Pvt Ltd Chennai Tamil Nadu Hyundai

21 Mr Shyam Kiran Keerthi Motors Hosur Tamil Nadu HMSI

22 Mr M Palanikumar Palaniappa's Motors (P) Ltd Dindigul Tamil Nadu Hero

23 Mr M Bala Murugan Pearl Motors Pvt Ltd Tu corin Tamil Nadu HMSI

24 Mr Dhirendra M Das Medallion Auto Sales Pvt Ltd Gorakhpur U ar Pradesh Hyundai

25 Mr Preetpal Singh Sardar Motor (Autowheel) Pvt Ltd Gorakhpur U ar Pradesh M & M

26 Mr Amin Rahman Ac on Automo ves Pvt Ltd Noida U ar Pradesh Honda Car

32 F A D A Journal December 2018 | fada.in



Regional News

Raipur Automobile Dealers Association (RADA)
Donates Wheelchairs, Stretcher Trollys to Cancer Ward
of Dr B R Ambedkar Memorial Hospital at Raipur

Raipur Automobile
Dealers Associa on
(RADA), an associa on
member of Federa on of
Automobile Dealers
Associa ons (F A D A),
carries out its social
responsibility on various
occassions. In this series
under CSR, wheelchairs
and stretcher trolleys
were donated to Cancer
Ward of Dr B R Ambedkar
Memorial Hospital at
Raipur.

Mr Manish Raj Singhania,
Hony Secretary, F A D A
and President, R A D A
handed over the
wheelchairs and trolleys
to Cancer Department,
Director and HOD - Dr
Vivek Chowdhary in the
presence of other office
bearers of RADA including
Amar Parwani, Shashank
Shah, Jitesh Pithaliya
Vivek Garg and Naresh
Patel.

On the occassion, Dr
Vivek Chowdhary handed
over a le er of
apprecia on to Manish
Raj Singhania and stated
that RADA has also earlier
extended its support to
cancer pa ents which is
really appreciable.

34 F A D A Journal December 2018 | fada.in



Know Our Member

Ace Kudale Car Pvt Ltd, Pune

Ace Kudale Car Pvt Ltd, The dealership also has two and is currently No. 3 in its customers, employees and the
based in Manjri near more workshops on Pune- sales in India. The dealership society as a whole.
Hadapsar, Pune and a Life Nasik highway having about has been conferred with the
Member of F A D A, is a 3S 20 service bays and 15 body- Royal Pla num award, the Customer-centric prac ces
Maru Suzuki dealership since shop bays. In 2013 and 2014, highest category of dealership and proac ve HR policies at
March 2009 and in its very first Ace Kudale Car was number in Maru for 2017 and again in the dealership, coupled with
year of opera ons, the one in customer sa sfac on 2018. The mo o of the CSR ac vi es and ‘Green
dealership bagged the in India from among more dealership is to “treat the Ini a ves’ undertaken by the
regional award for the lowest than 3,000 workshops across customer the way you want to dealership have helped Ace
cost of body repairs. the country. The dealership be treated”. Kudale Car grow tremendously
over the years. These
measures have also enabled
the dealership to secure
recogni on and numerous
awards from its principals and
the society.

The man steering the
dealership is Mr Neeraj
Deepak Kudale, Managing
Director of Ace Kudale Car. Mr
Kudale is a civil engineer and
has done his post-gradua on
in Construc on Management.
He also helps his father - Dr
Deepak Kudale, President,
Cinema Owners Associa on
of India, in the family business
in film theatres and real
estate.

Having witnessed a steady also bagged the award for Ace Kudale Car has kept pace Mr Neeraj Kudale is a diehard
growth since its establishment highest growth for rural sales and adopted the newer automobile lover and has a
in 2009, Ace Kudale Car Pvt Ltd in India in 2013. technologies to serve its collec on of many cars.
today has an extensive customers be er.
network of sales & service In 2016, Ace Kudale started its F A D A wishes M/s Ace
outlets. Suzuki two-wheelers business The vision of Ace Kudale Car is Kudale Car Pvt Ltd, Neeraj
and expanded to about 7 to become a Premium Kudale and his Team ‘All the
The dealership showroom is outlets with 2 dealerships Dealership with a clear focus on very Best’.
built on 70,000 sq. land on codes selling about 200 bikes each business. Integrity,
Solapur highway. The and servicing 1,200 bikes. In Commitment, Passion and
dealership has 30 service bays the first year, the dealership Speed are the integral part of
and 30 body-shop bays. The became the number one the value system at Ace Kudale
dealership sold more than dealership in Pune. In 2017, Car. The dealership remains
30,000 cars and serviced the dealership started the wedded to the mission of
around 60,000 cars last year. Maru Commercial showroom delivering value to its

36 F A D A Journal December 2018 | fada.in

Chart of the Month
fada.in | December 2018 F A D A Journal 37

Upgrades

New Mercedes CLS: World's First Four-Door Coupé Redesigned

I ndia’s largest luxury car Ÿ The new CLS 300 d is the first car to incorporate the new He further added, “With the
manufacturer Mercedes-Benz Mercedes-Benz design idiom of “sensual purity” in a stylish launch of the new CLS 300 d,
further strengthened its coupe body Mercedes-Benz con nues its
product offering with the offensive with its 12th
introduc on of the new CLS, Ÿ The new BS VI diesel engine churns out 180 kW and a peak product launched in 2018. We
the dynamic and elegant four- torque of 500 Nm at 1600- 2400 rpm; helps the CLS 300 d have an exci ng line-up for
door coupe, now in its third accelerate from 0 to 100 km/h in just 6.4 seconds 2019 as well and our product
genera on. The new CLS innova ons will con nue in
dream car pioneers the stylish Ÿ The interiors have been enhanced with a high resolu on the coming months. We are
new design idiom of 12.3-inch media display screen along with a digital cockpit glad that our customer
Mercedes-Benz. The new CLS with three selectable display styles and new genera on centric strategy for India is on
was launched by Michael Jopp, telema cs which includes the Audio 20 with NTG 5.5 the right track and is
Vice President - Sales & Mktg, witnessing a posi ve
Mercedes-Benz India, and will Ÿ The new CLS is installed with Burmester surround sound sen ment.”
be available across all system which includes 13 high-performance speakers
Mercedes-Benz dealerships precisely tailored to the vehicle interiors which provides an T he interiors of the new CLS
across the country. acous c experience have been significantly
enhanced with a high-
T he four-cylinder BS VI Ÿ Ambient ligh ng in 64 colours along with illuminated air resolu on 12.3-inch media
engine in the CLS 300 d churns vents stunningly highlight the interiors of the new CLS. The display screen along with a
out 180 kW, which allows the CLS that opened up a whole new dimension of ligh ng digital cockpit with three
CLS to a ain 100 km/h from technology is MULTIBEAM LED headlamps enabled selectable display styles –
stands ll in 6.4 seconds. With Classic, Sporty and
the introduc on of the new Ÿ The new CLS is offered with a wide range of exterior paint Progressive – along with a
CLS, Mercedes-Benz work including Graphite Grey, Ruby Black and Designo new genera on telema cs,
con nues to raise the bar of Selenite Grey Magno which includes the Audio 20
design innova on, class with NTG 5.5. The 64 colours
performance and cu ng- Ÿ The new Mercedes-Benz CLS 300 d is priced star ng INR ambient ligh ng along with
edge technology. 84.70 Lakh, Ex-Showroom, all India. illuminated air vents further
highlight the interiors and
Speaking on the occasion, coupé family with abundant keep striving to push the promote a sense of well-being
Michael Jopp, said, “With the design features. We are boundaries in the luxury car while driving. The vehicle also
growing penchant for dream confident that the third segment by driving offers Smartphone
cars, we are glad to launch the genera on CLS will offer innova on not only in our Integra on, which supports
most elegant and dynamic superior luxury and comfort versa le line-up, but also in Android Auto and Apple
third genera on CLS. Known to our customers and will our customer service CarPlay. The new CLS comes
for many firsts, the new CLS con nue to delight them. offerings and the overall with stylish Mul beam LED
we have launched also Mercedes-Benz India will vehicle ownership. headlamps with adap ve high
pioneers the new design beam assist, all new 18-inch
idiom of Mercedes-Benz, alloys and an electric sliding
which is recognisable by its sunroof with Pre-safe closing
clear contours and reduced func on.
lines. Like its predecessors,
the third CLS genera on The new Mercedes-Benz CLS
emanates self-assured 300 d is priced star ng INR
spor ness in an exemplary 84.70 Lakh Ex-Showroom, all
style. The stylish new CLS 300 India.
d blends flawlessly into the
current Mercedes-Benz

38 F A D A Journal December 2018 | fada.in

Upgrades

Force Gurkha Xtreme Launched in India; Priced At ₹ 12.99 Lakh

Force India launched the top- been wai ng since long for this faceli with a bold new front, chrome finish air intake
of-the-line model of its variant. With the introduc on which features a single-slat snorkel, muscular side
popular off-road SUV Gurkha of the Gurkha Xtreme, our grille, classic round headlamps cladding, new a rac ve bold
on December 18. Christened por olio of off-roading with a grille, and a heavy-duty graphics, large ORVMs, sturdy
the Force Gurkha Xtreme, the vehicles is complete with front bumper with metal skid and full-length slip resistant
new three-door off-roader is variants to take care of every plate. However, the indicators footboard, and increased
priced in India at ₹ 12.99 lakh segment, be it mild, moderate on the Gurkha Xtreme are LED width all-terrain tubeless tyres
(Ex-Showroom) and comes or extreme off-roading. The now, instead of the orange are standard.
with a 4x4 as standard. Force best part of the Gurkha Xtreme ones in the Xplorer.
India will be selling the SUV is that it is adaptable for As for its off-road capabili es,
across the country in a phased compe ve off-roading." The Gurkha Xtreme also gets the new Force Gurkha Xtreme
manner. The biggest changes, new wheels and we also see also comes with a new transfer
of course, is the new engine Visually, the new Force Gurkha the Xtreme badging on either case and a new live rigid axle in
Mercedes-Benz derived Xtreme has undergone a side of the SUV. The signature the front, the only vehicle in
OM611 2.2-litre common rail this class to offer one. It also
diesel unit that makes close to gets high strength C-in-C
140 bhp and 321 Nm of peak chassis and coil spring
torque. The engine will be suspension for improved on-
paired to a 5-speed manual road handling and ride
gearbox. comfort along with extreme
off-roading ability. It is also the
Speaking on this occasion, only vehicle that comes with
Ashutosh Khosla, President - differen al locks on both front
Sales and Mktg, Force Motors and rear axles to come out of
said, "The Gurkha Xtreme is s cky situa ons, and air intake
being introduced in a phased snorkel for deep water wading.
manner with the first lot of The SUV also offers provision
vehicles being delivered to to fit hub locks on the front
select customers who have axles that help saving fuel.

Honda 2Wheelers India Introduces X-Blade ABS at Rs. 87,776

Honda Motorcycle and way India rides on 2Wheels headlamp. Powering the X- Producing 13.93 bhp at
Scooter India (HMSI) launched with new innova ve products Blade is Honda’s 162.71cc HET 8,500 rpm and peak torque
its 160cc sporty X-Blade with and advanced technology.” engine which provides an ideal of 13.9 Nm at 6,000 rpm X-
An -Lock Braking System balance of performance and Blade also promises faster
(ABS) on December 7, with a Equipped with several efficiency. accelera on. X-Blade offers
price tag of Rs. 87,776 (Ex- segment first features, the X- long seat, seal chain and
Showroom, Delhi). Blade ABS ensures enhanced Speaking on the occasion, Y S hazard switch, digital meter,
braking performance on the Guleria, SVP - Sales & Mktg, service due indicator, digital
Commen ng on the launch, roads. Enhancing the style HMSI, said, “The X-Blade has clock and a gear posi on
Minoru Kato, President & CEO, element of the new X-Blade, been exclusively designed for indicator.
HMSI, “Strengthening our the under cowl, front forks the motorcycle enthusiast
posi on in 150-180cc cover along with wheel rim looking for style and The X-Blade is available in 5
motorcycle segment, X-Blade stripes are available now as performance in their daily sporty colours – Ma e Marvel
defines advanced styling and standard fitment. The design commu ng. X-Blade now Blue Metallic / Ma e Frozen
superior technology for the statement of X-Blade has a comes equipped with ABS Silver Metallic / Pearl Spartan
young enthusiast. We are commanding front stance with which will enhance rider’s Red / Pearl Igneous Black and
determined to transform the a futuris c segment first LED confidence. Sporty ” Ma e Marshal Green Metallic.

fada.in | December 2018 F A D A Journal 39

News Basket

Maruti Suzuki Inaugurates Centre of Excellence (CoE)
at Government Polytechnic, Manesar

In a bid to enhance employ- effec vely contribute to Skills as a training centre for maintain and run the CoE. To
ability of youth, Maru Suzuki India ini a ve. The state-of- students from Government meet its objec ve of bridging
India Ltd (MSIL), has the-art CoE is equipped with Polytechnic, Manesar as well the skill gap, Maru Suzuki will
undertaken various Skill latest equipment and training as students from other also depute experienced
Development ini a ves under tools. Facili es like Maru polytechnics across the state trainers/industry experts to
its CSR program. The company Suzuki Basic training Lab, and shop floor employees train and share the technical
took another major step by Safety Lab, and Finishing from automobile/auto knowhow.
inaugura ng a Centre of Schools for Weld/Paint/ component industry.
Excellence (CoE) at Assembly, Simula on Kenichi Ayukawa, MD & CEO,
Government Polytechnic, workshop, Robo cs Lab, The land and building for the MSIL said, “Skill Development
Manesar in Haryana on AutoCAD (CAD/CAM/CAE) CoE at the Government is an important focus area
December 27, in the presence Lab, Electropneuma cs Lab Polytechnic, Manesar is under Corporate Social
of Kenichi Ayukawa, MD & and Smart class rooms will be provided by Government of Responsibility. We have been
CEO, MSIL along with Krishan used to impart prac cal Haryana, while Maru Suzuki working with over 110 ITIs
Kumar Kataria, Director training. has set up workshops and labs across the country. Our focus is
Technical Educa on, Haryana with latest equipment and to impart right technical skills
and Tilak Raj Narula, Principal, The facility is expected to training tools. Maru Suzuki with strong emphasis on
Government Polytechnic, benefit over 5,000 polytechnic has borne the ini al cost of set inculca ng the right values
Manesar, inaugurated the students annually. It will serve up and will con nue to and a tude. These will help
Centre of Excellence and them find a job and build a
Incuba on Centre, today. The career while contribu ng to
event was graced by Maru Government of India’s Make in
Suzuki senior management India ini a ve.”
and senior State Government
officials. The CoE is a result of the MoU,
signed in 2018, between
Set up in collabora on with Maru Suzuki and
Government of Haryana, the Government of Haryana to
CoE will be used to train and upgrade and enhance the
improve the level of technical Government Polytechnic,
educa on of polytechnic Manesar with Technical
students in the State and Training Facili es.

Volvo Trucks Saves Fuel with New Improvements

Volvo Trucks’ upgraded D11 turn every stone in order to regula on while improving consump on and internal
and D13 diesel engines for find new ways of reducing fuel fuel efficiency for our Volvo FH, fric on. Addi onally, the 500
Volvo FH, FM and FMX meet consump on in our trucks. FM and FMX trucks”, he added. hp engine saves extra fuel by
the new Euro 6 Step D This me, a combina on of having the same higher
regula on and contain a small improvements enables The new Euro 6 Step D compression ra o as the 460
number of improvements that significant cost savings for our regula on focuses on ensuring and 420 hp variants.
enable transport operators to customers without com- that vehicles conform to the
reduce fuel costs. promising performance or emissions standards in normal The map-based I-See so ware
produc vity.” opera ons of use. The uses map data to preview the
Claes Nilsson, President of upgraded D13 diesel engine topography of the route, and
Volvo Trucks, said “With fuel “These updates will support also uses a new VDS-5 low takes care of gear selec on,
clocking up about one third of our customers in staying on viscous oil type and new piston accelera on and engine
hauliers' costs, we con nue to top of the new emission oil scraper rings that lower fuel braking.

40 F A D A Journal December 2018 | fada.in

News Basket

Mercedes-Benz Expands its Footprint in Rajasthan

Inaugurates First-Ever Luxury Automobile Dealership in Jodhpur

Mercedes-Benz strengthened dealership in Jodhpur. At T&T Motors, Jodhpur is spread experience to our customers.
its retail footprint in the Mercedes-Benz India, it is our across a cumula ve area of It boasts of 3 car display area
emerging Tier II markets by endeavour to create new 10,500 sq. . and has been with 4 dedicated service bays
inaugura ng its first-ever 3S avenues of proximity with our built with an investment of Rs. and is staffed by 20 trained
dealership in Jodhpur, customers and provide them 5 crores. The facility is professionals. The dealership
Rajasthan. The dealership with a deligh ul ownership developed in line with the will also cater to neighboring
strategically located at the experience. The inaugura on innova ve Mercedes-Benz districts of Pali, Sirohi, Jalore,
prime automo ve hub in of T&T Motors Jodhpur is a design elements, which offers Sanchore, Barmer, Jaisalmer
Jodhpur serves as a one-stop- step towards that direc on.” an unsurpassable luxury and Nagaur.
shop solu on for all customer
needs and is a luxury
des na on in itself. The
luxurious showroom was
inaugurated by Mar n
Schwenk, MD & CEO,
Mercedes-Benz India, and
Vidur Talwar, MD, T&T Motors
Pvt Ltd.

Mar n Schwenk, said, “As a
part of our “Go to Customer”
strategy, we have inaugurated
our first-ever luxury car

Isuzu Motors Opens New Dealership Outlet in Karnal

Isuzu Motors inaugurated a grow in the region and with families in the country. I wish represen ng the brand ISUZU
new outlet of ‘Paramount the versa le D-MAX pick-up Paramount ISUZU the best in
ISUZU’ in Karnal, on December range, we will address the their journey with us.” in key industrial and business
20. The inaugura on event need ably with the support of
was presided by the top Paramount ISUZU. Our We are commi ed to offer our ci es of Haryana.
management of Isuzu Motors personal range of vehicles customers, the right product
India and Paramount Autotech have become preferred choice and service those who have Jaipal, Managing Director,
Pvt. Ltd. The new 3S facility is for many auto enthusiasts and been with us for over 4 years Paramount Autotech said,
spread over an area of 8,600 sq “We have been represen ng
the brand ISUZU for over 4
and is located on GT Road. years now in the key business
and industrial ci es of Haryana
Speaking at the inaugura on, and we are delighted to extend
Ken Takashima, DMD, Isuzu our associa on with ISUZU in
Motors India, said, “We are Karnal as well. ISUZU vehicles
pleased to extend our are highly versa le, durable
associa on with Paramount and capable and is proven in
Autotech in Karnal as well. The many markets across the
city is growing to be one of the world. Today, with this new
smart ci es in the country and facility in Karnal, we are
offers significant business commi ed to offer these best
poten al. The need for products backed by strong
efficient hub-and-spoke service support to the
transporta on will con nue to discerning customers of Karnal
and nearby districts.

fada.in | December 2018 F A D A Journal 41

Competition Law

Competition Law Updates

Supreme Court stays a Rs. 420 acquisi on in auto component Japanese code as a basis to
crore penalty imposed on maker Subros. Under the CCI formulate its own set of rules for
Hyundai by the Compe on Combina on Regula ons of such cross-sector partnerships.
Commission of India (CCI) 2009, all mergers & acquisi ons
beyond a certain threshold CCI dismisses allega ons of
In July 2015, the CCI imposed a require the approval of the CCI. price-fixing against cab
penalty of Rs 420.26 crore on aggregators- Ola and Uber
Hyundai Motors India Limited Subros is an integrated
(Hyundai) for viola ng Sec ons manufacturing unit in India for The CCI has dismissed allega ons
3(4) and 4 of the Compe on Act automo ve air-condi oning of price collusion between the
for allegedly restric ng the systems, while Denso is a global cab aggregators- Ola , Uber and
supply of genuine spare parts and automo ve components OEM, their drivers along with the
diagnos c tools to individual headquartered in Japan. The imposi on of resale price
service providers. Upon acquisi on of addi onal stake is maintenance mechanisms.
approaching the Na onal subsequent to the board of
Company Law Appellate Tribunal Subros approving a proposal to On the ques on of price collusion,
(NCLAT) in October, Hyundai’s allot 52,47,150 shares worth Rs. the CCI noted that the fact that the
plea for a complete stay on the 209 crore on a preferen al basis drivers of the vehicles have agreed
CCI’s Order was rejected. to Denso in early September. to a fare based on pricing
algorithms which are driven by
Further, the NCLAT also issued Japan Fair Trade Commission self-learning technology, does not
several direc ons to be complied (JFTC) to set rules for cross sector amount to collusion.
by the car manufacturer, partnerships for automobiles
including standardiza on of Further, on technical ques on of
spare parts and allowing Original In an a empt to prevent the resale price maintenance, the CCI
Equipment Suppliers (OESs) to monopoly of intellectual exonerated the cab aggregators
sell spare parts in the open property, the JFTC is se ng new by no ng that there should be
market without any restric ons, rules for cross sector evidence of some kind of floor
as per the CCI’s earlier direc ons. partnerships between auto price being fixed and maintained
According to Hyundai, as a result manufacturers and high-tech by the service provider to be
of the NCLAT’s order, it was companies manufacturing charged under the provisions of
supposed to deposit 10% of the connec ng devices. the Compe on Act.
penalty based on its total
turnover, which is 54.54 mes the The move comes as companies SC stays Compe on Appellate
penalty had it been imposed it on increasingly reach across Tribunal’s order that imposed
its relevant turnover. industry lines to tackle new penalty on 3 car companies
business models, such as in
In this regard, a two-judge bench Toyota and So Bank Group's The COMPAT by its order dated
of the Supreme Court, partnership on next-genera on Dec 9, 2016 concurred with the
comprising of jus ces A M automated cars. Mitsubishi findings of the CCI and directed
Khanwilkar and Deepak Gupta Electric, industrial robot maker Ford, Toyota and Nissan, to
has stayed the Rs. 420 crore Fanuc, machine tool maker DMG remove all restric ons imposed
penalty un l further no ce. Mori and Hitachi have also through agreements on auto
agreed to share data through a parts suppliers so as to open up
CCI approves Denso pla orm of connected devices. the market for spare parts and
Corpora on’s addi onal 7% remove all restric ons on supply
stake purchase in Subros Ltd The JFTC seeks to prepare a dra by OESs to authorized dealers. On
code by the end of the year. The appeal, the Hon’ble SC has stayed
The CCI has approved Japan United States Federal Trade the opera on of the COMPAT’s
based Denso’s 7% stake Commission also seeks to use the order and the ma er has been
listed next on 11 January 2019.

42 F A D A Journal December 2018 | fada.in

One Nation | One Association Federation of Automobile Dealers Associations (F A D A)
invites its members to join the delegation to

The NADA Show Expo is the auto industry's premier marketplace of products, services and technologies speci cally
targeted to franchised new car dealerships. More than 700,000 square feet of exhibits highlight more than 500
manufacturers and suppliers of the hottest products and coolest technologies.

F A D A is organising the 3rd delegation to the N A D A 102nd Annual convention, USA.

65 delegates have attended the Show in the last 2 years. Every participant will have access to all the workshops on
the NADA Academy website after the event.

The event provides education, business solutions and networking opportunities to help managers drive success at
each dealership. Real solutions for the issues one faces in every department, including employee hiring, retention
and training, digital and traditional marketing, parts and service, and sales management can be found.

Our experience has shown us that the US dealership practices are usually 5-7 years ahead of us. Hence attending
the show and possibly visiting some dealerships like we have done in the past will enhance our capabilities
manifold. It will particularly help young and recent entrants into the Auto Retail Industry.

For those of us who have been bogged down in age old practices, this convention will shake us out of our lumber and
open our eyes to modern practices.

The NADA Show is not just for dealers or dealership owners, but for CEO’s & CFOs as well. There’ll be around 100
educative workshop sessions and over 500 companies participating, offering thousands of products, solutions and
services under one roof. The latest innovations in auto retail sector get showcased at the NADA Convention rst.

A progressive dealer should not miss this opportunity.

Book Your Seat Immediately

Those who want to be part of the delegation may please ll the registration form and return to us along with
the payment and copies of passport & US visa, if available.

Please note Dealership Visits are planned on January 23, 2019 in San Francisco.

For any further clari cation, please contact: Ms Indira Menon at +91 99682 81214 or e-mail to [email protected].

F A D A News

Vyapar Gujarat: Together Towards Tomorrow

The contours and dynamics vehicle manufacturers come The key Session on Vahan 4.0 Ahmedabad and the panellist
of retail automo ve together under one roof. was moderated by Mr Arif included Mr Vijay Thakkar,
businesses are changing at Vora, Regional Director, Assistant Commissioner, CGST
alarmingly fast pace. The Mr Baljeet Bagga, Chairman, F Central Gujarat, F A D A (Retd.); the Panel on Insurance
compe on is intensifying A D A Gujarat welcoming all Council, Gujarat. The Panellists in Auto: Confusion Galore -
with each passing day. Above emphasised that the included Mr Sanjay was Moderated by Mr Arun
all, the businesses are being automobile dealers must Mendira a, Technical Director, Malhotra, Industry Veteran,
confronted with the GST and appreciate the important role NIC, Ministry of Electronics Former MD, Nissan Motor
RTO issues with the played by them in building the and Informa on Technology; India and the panellists
implementa on of Vahan 4.0 Na on by providing jobs to Mr R K Chavda, Senior included Mr Ramesh Babu
that ring in new challenges and more than 5 million people Technical Director, NIC, Pallayi, OEM Head, Reliance
complexi es never confronted near their homes and skilling Gandhinagar; Mr D M Patel, GICL; Shri Anand Singhi, Chief
before. them as well. The Auto Retail Senior RTO Official, Distribu on Officer, Reliance
industry was also one of the Gandhinagar, State of Gujarat; General Insurance and Ms
It is, therefore, incumbent on highest contributors to the and Mr Deepinder Singh Garima Misra, Director,
the automobile dealerships to na onal exchequer by means Swanni, President - Vadodara Volkswagen Capital; and the
keep pace with and change in of tax contribu ons. Yet the Authorised Automobile third Panel on: Future is Now:
tune with the fast changing auto retail had not received Dealers Associa on. Mr Vora Building Technology and
scenario and business the Industry Status. It was and Mr Swanni raised many Innova on into Reail – was
dynamics. therefore impera ve for the issues faced by the dealerships moderated by Mr Manish Raj
dealerships to stay united and while using the Vahan portal. Singhania, Hony Secretary, F A
With this aim, F A D A is work together to forge for a Mr Mendira a along with his D A and the panellists
working to make the be er tomorrow, he added. colleagues from NIC & RTO included: Mr Nikunj Sanghi,
Federa on every Auto tried addressing these issues. Chairman, Automo ve Skills
Dealer’s one stop des na on Mr Ashish Kale, President F A D One concern especially faced Development Council (ASDC);
for any concern related to the A in his speech thanked the by the two-wheelers in the Mr Nirav Shah, Partner, PWC;
Automobile Retail Industry. To Gujarat automobile fraternity State of Gujarat related to the Mr Aman Ladia, CEO, Liquid
facilitate this in an organised to have taken me off to Cart size was resolved within Protocol; Mr Ni n Mehra, ED-
way, the Federa on has a end the event in such huge an hour by the NIC officials Business, 21 North; Mr
started organising state level numbers. Mr Kale spoke about while the program was s ll Kaushik Shah, Dealer Principal,
conference called VYAPAR in F A D A and its role in working going on. Universal Honda, Ahmedabad.
every F A D A State Chapter. towards ge ng resolu on to
dealers on dealership issues. Highlights of the occasion Mr C S Vigneshwar, Hony
A er immensely successful He said it would be his included unveiling of the Road Treasurer, F A D A thanked the
Vyapar ’s in New Delhi, endeavour along with his team Safety S cker; Inspira onal Sponsors: Yes Bank,
Mumbai, Patna, Lucknow and to make F A D A climb newer Sessions by Mr Annadurai, AkzoNobel, ICICI Lombard,
Kolkata, the sixth edi on of heights. Chennai’s famous auto-driver Reliance General Insurance,
Vyapar: Vyapar Gujarat- who delighted his customer @ 21North, Orient Body Shop
Together Towards Tomorrow, Chief Guest, Mr R C Faldu, Rs.50; and by Dr Anil Lamba, Solu ons India, Ratna Group
was held on December 20, Hon’ble Cabinet Minister of Director, Lamcon Training. In and the Council Members of F
2018 at Hotel Courtyard by Gujarat & Guest Of Honour, Mr addi on there were three A D A Gujarat in suppor ng F A
Marrio , Ahmedabad. The Ishwarsinh T Patel, Hon’ble Panel Discussions: one on De- D A in holding Vyapar Gujarat,
event witnessed more than Minister of Co-opera ons, mys fying GST moderated by a mega event for the first me
155 entrepreneurs, who own Sports & Transport, Mr Pranav Shah, Director, in the State of Gujarat. Mr C S
and operate the Automo ve Government of Gujarat were Innova ve Honda, Vigneshwar then proposed the
Retail business for passenger, unable to join due to an urgent Vote of thanks.
two wheelers and commercial official mee ng.

44 F A D A Journal December 2018 | fada.in