F A D A Journal - April 2019

Federation of Automobile Dealers Associations | fada.in | Estb: 1964 April 2019 | Vol. 19 | Issue: I | Pages : 60 | Rs. 50

fada 6, President’s Message

Journal Auto Industry Faces Short Term Blip
Though Long Term Fundamentals
Insights from the Automobile Retail Industry Continue to be Robust

10, India Economics

RBI Cuts Repo Rate by 25bps |
Inflation Climbs | IIP Declines

20, GST Update

Changes in Utilizing Input Tax Credit
(ITC)

26, Business Achievers 12, F A D A News

How Symphony Got Its F A D A Media Coverage
Rhythm Back on April 2019 Sales

16, Forthcoming Event 30, The Zero Hour

Vyapar Exclusive Interview
with Gen Next
Tamil Nadu
Afdhel Abdul Wahab
Building the Future
Founder, IndusGo & Director, Indus Motor
3RD JUNE 2019

VENUE

Hotel Radisson Blu
Egmore, Chennai

2.30 Onward



For the First Time

Jointly Conducts

2019 DEALER
SATISFACTION STUDY

Category: Passenger Vehicle; Commercial Vehicle; & Two-Wheeler

participate online www.fada.in

One Na on | One Associa on FEDERATION OF AUTOMOBILE DEALERS ASSOCIATIONS

804-805, Surya Kiran, 19, Kasturba Gandhi Marg, New Delhi - 110 001

T +91 11 6630 4852, 2332 0093, 2332 0095 | E [email protected]

fadaindia.org fadaindia FADA New Delhi FADA_India www.fada.in FADA India

contents Federation of Automobile Dealers Associations | fada.in | Estb: 1964 April 2019 | Vol. 19 | Issue: I | Pages : 60 | Rs. 50

April 2019 | Vol. 19 | Issue: I fada 6, President’s Message
Auto Industry Faces Short Term Blip
3 F A D A & J D Power 2019 Dealer Satisfaction Study Journal Though Long Term Fundamentals
Continue to be Robust
Ques onnaire Weblink for submit the responses Insights from the Automobile Retail Industry
10, India Economics
6 President’s Message RBI Cuts Repo Rate by 25bps |
Inflation Climbs | IIP Declines
Auto Industry faces short term blip though long term fundamentals con nue to be robust
20, GST Update
8 Industry Track Changes in Utilizing Input Tax Credit
(ITC)
Auto Market A Mixed Bag in March’19
26, Business Achievers 12, F A D A News
10 India Economics
How Symphony Got Its F A D A Media Coverage
RBI Cuts Repo Rate by 25bps | Infla on Climbs | IIP Declines | Trade Deficit Inches Up Rhythm Back on April 2019 Sales

12 F A D A News 16, Forthcoming Event 30, The Zero Hour

F A D A Media Coverage on April 2019 Sales Vyapar Exclusive Interview
with Gen Next
14 Regional News Tamil Nadu
Afdhel Abdul Wahab
F A D A President Being Felicitated at the 6th AGM of Raipur Automobile Dealers Associa on Building the Future
Founder, IndusGo & Director, Indus Motor
15 F A D A Awards 3RD JUNE 2019

Weblink for Submit the Nomina ons for the 2nd Edi on of F A D A Awards VENUE

16 Forthcoming Events Hotel Radisson Blu
Egmore, Chennai
Vyapar Tamil Nadu Scheduled to be Held on June 3, 2019
2.30 Onward
18 Govt. Circulars
Printed and Published by Saharsh Damani on behalf of Federa on of
20 GST Update Automobile Dealers Associa ons, 805, Surya Kiran, 19, K G Marg, New
Delhi-110 001.
Changes in U lizing Input Tax Credit (ITC)
Printed at Sita Fine Arts P Ltd, A-16, Naraina Indl Area - II, New Delhi
22 Dealership Pro itability
Editor: Saharsh Damani
Manpower Produc vity - Integral Element of Dealerships Profitability
Advertisers’ Index 05
26 Business Achievers 21
21North 57
How Symphony Got Its Rhythm Back Ashok Leyland 02
Kuttukaran Group 25
30 The Zero Hour Provincial Group 59
Shri Ram Transport Finance 51
An exclusive interview with Afdhel Abdul Wahab, Founder, IndusGo & Director, Indus Motors Tata Motors 60
United Group of Institutions
32 Technology VE Commercial Vehicles

Preparing for Tomorrow, Today Editor, F A D A Journal and CEO, F A D A

36 Management Mr Saharsh Damani
T +91-11-6630 4852, 2332 0093, 2332 0095
How to Enhance Your Dealership’s Efficiency & Revenue E [email protected]

38 Competition Law Updates Of ice Bearers Vice President
Mr Vinkesh Gulati
39 Surveys & Studies President E [email protected]
Mr Ashish Harsharaj Kale
Upper Execu ve and Premium Motorcycles Owners Become More Sensi ve to E [email protected] Hony. Treasurer
Fuel Economy, J D Power Finds Mr C S Vigneshwar
Hony. Secretary E [email protected]
41 Special Subscription Offer of Autocar India & Autocar Professional Mr Manish Raj Singhania
E [email protected]
Magazines for F A D A Members
Int’l Director & Immediate
42 Consumer Case Study Past President Past President
Mr Nikunj Sanghi Mr John K Paul
46 New Unveils E [email protected] E [email protected]

48 Upgrades

50 News Basket

52 Chart of the Month

53 Statistics

Vehicle Sales, Y-o-Y Growth & Market Share - March 2019

58 Declaration of Ownership



President’s Message

Auto Industry Faces Short Term Blip Though
Long Term Fundamentals Continue To Be Robust

Nominate yourself for F A D A Awards 2019

MR ASHISH HARSHARAJ Dear Friends, A D A get a more detailed again request my dealer
KALE Insight into each Category friends to par cipate by
President, F A D A While I write to you, we and Geography and will answering the
have recently released the guide us on what issues to ques onnaire.
Vehicle Registra on take up for the Benefit of
Figures and the Situa on our members. We will Nomina ons for F A D A
Con nues to be con nue to do this on a Awards 2019 is open and
worrisome. A er an monthly basis and will shall close by May 31st,
Up ck in March (on a cover more aspects of our 2019. The Awards,
Month on Month basis) in business going forward. rewards excellence in
almost all categories, we Automobile Dealership
have again witnessed The Overall sen ment and is one of its kind to
Falling Numbers, both YoY that came out from the recognise and appreciate
as well as MoM. Overall survey for the near term the best in Auto Retail
the Consumer Sen ment outlook was not very Industry. This year, the
remains weak and we encouraging and the same number of awards has
expect it to con nue so ll also got reflected also grown from last year.
the start of monsoon. A Real me in the
new stable government registra on number of This is Very Good
and con nued easing by April. Opportunity to Showcase
RBI will also help Auto the Best Prac ses of Your
Retails to return to growth F A D A shall be Dealership Team and
trajectory. approaching the new stand a chance to be
government once it recognised as the Best
I would like to Thank You assumes office to work on Dealer In India, in the
for such a Tremendous all our issues of the auto Category you Operate in.
Response to our New retail industry to bring the
Online Survey. I am industry back on the High Please send in your
Absolutely Overwhelmed growth trajectory . nomina ons before the
by it, as it went beyond my last date. The Award
Expecta ons. Thank you Rever ng to F A D A presenta on shall be a
once again. ac vi es, I hope most of gala event and will be
you have par cipated in held on July 12, 2019 in
The Online Survey was the joint study conducted Mumbai. Program details
started to gauge the Retail by JD Power & F A D A on are being worked out and
Sen ment across the Dealership Sa sfac on. shall be shared once
country and across the Those of you have not finalised. More details
ver cals to understand par cipated may do so about F A D A Awards can
the Issues which affect all online as that op on is be found on Page no. 15.
of us, Retails, Stock Levels available now. The Study
and Overall Consumer is important and will The eighth edi on of
Sen ment. This will help F benefit us. Hence, I once Vyapar viz., Vyapar Tamil

6 F A D A Journal April 2019 | fada.in

President’s Message

Nadu is being held in good and stable business Inventory including along with it the Dealership
Chennai on June 3, 2019 though facing Headwinds Logis cs, insurance , etc. Business con nue to be
at Hotel Radisson Blu in recent mes. Extremely Strong.
Egmore . I will Request all Also in today’s Dynamic
dealer friends in the State F A D A will work towards Auto Retail World, Any In a Rapidly Growing
of Tamil Nadu and Our Community coming Unsold Inventory beyond Country like Ours, which
neighbouring states to close together and 45 days is a deprecia ng is heading towards being
par cipate by registering Address each and every Inventory. Depending on the Global Leader, the
yourself online. Details that plagues Auto Dealers the Popularity of the Mobility Needs of a
about the same can be and I am sure We will Model, the rate of Growing Na on are best
found on Page no. 16 soon be Out of the Woods deprecia on might differ, served by the Automobile
and once again in but it is devaluing with Sector.
Vyapar are events which Sunshine. every passing day.
have been started with The Need of the Hour is
the intent to connect The Slowdown in growth Looking at the Fluctua ng to Majorly Focus On
dealers to F A D A from has given us an Retails and Overall Cost Controlling our costs as
every nook & corner of opportunity to focus on Structure of Dealership well as on increased
the country. Vyapar and highlight issues that going up as well as produc vity and
provides a great pla orm trouble our business and improved Logis cs Speed con nue building an
for networking its viability, which post GST, F A D A will be efficient and trained
opportunity and engage normally get overlooked advoca ng that the team to handle the 2nd
in meaningful discussions during high growth. Industry Average should round of growth our
with dealer principals now be Reduced to 21 Na on will witness and
from all across the state, F We are working on days or 3 weeks from the which is bound to come
A D A office bearers, mul ple issues and its earlier Industry norm of once we have Posi ve
officials from Transport solu ons and One of the 30 days or 4 weeks. Circumstances around
Department and allied issues I would like to us.
industries under one roof. men on and which F A D F A D A has taken up this
A is taking up is of High issue and we will con nue I am an eternal op mist
Friends, I am aware that Inventory, which beyond to Strongly Advocate for it and am very hopeful that
there is too much the required norm is a with all our stakeholders, the de will turn for be er
Nega vity floa ng around Huge Cost Burden on the with new government
Auto Dealerships in the Dealer nor does it benefit ll we get to a desired assuming office and the
past few months with the OEM in any way. level of 3 weeks or 21 days country blessed with
growth suddenly going across all ver cals. normal monsoons.
into the nega ve The Only beneficiaries are
territory. our Bankers and Though the road seems Need of the hour in current
Financiers with the long and mes challenging circumstances is to Stay
Every Business goes interest they earn and but the silver lining is that Invested - Stay Focussed
through its ups and even they are not Happy if these challenges unite us and Strengthen Ourselves
downs and that is a part this High Inventory and nurture us to be …..Benefits Await.
of entrepreneurship and Interest is Eventually courageous and to exert
as a Community, we will affec ng the financial our highest poten al while Till then,
have to Navigate through health of the Dealer, who, moving ahead together.
these troubled mes is his Customer. Apart Happy Selling
which I am very sure are from Interest We also F A D A is Extremely
not going to last long. The have to bear addi onal Confident that The Warm Regards,
Dealership Business is a costs a ached to High Fundamentals and the
Long-term Prospect of the Ashish Harsharaj Kale
Indian Auto Industry and

fada.in | April 2019 F A D A Journal 7

Industry Track

Auto Market A Mixed Bag in March’19

The last month of the units in the domes c market registered annual domes c said, “We are happy to have
financial year closing and 10,379 units in exports. sales of 183,787 units during clocked a growth of 7% in
reported a mixed bag of auto The Company ended 2018-19 FY18–19, recording 8% domes c sales in FY 18-19 as
sales with some pockets of with its highest ever total growth over last financial compared to FY 17-18.
the segment doing sales of 1,862,449 units a year. The company had sold Innova Crysta and Fortuner
marginally well while others growth of 4.7 per cent. This 170,026 units during FY17- have been maintaining the
remaining in the nega ve comprises highest ever 18. growth trajectory and
terrain. High insurance and domes c sales of 1,753,700 con nue to be leaders in the
interest rate; increasing fuel units. The export sales were HCIL recorded a double digit segment.
prices and subdued 108,749 units. 22.6% increase in its sales for
customer sen ment ahead of the month of March 2019 In the month of March 2019,
the ongoing elec ons and Hyundai Motor India Ltd with a tally of 17,240 units as Toyota Kirloskar Motor sold a
slow economic growth acted (HMIL) – India’s second against 14,061 units sold in total of 12,818 units in the
as road blocks in off take of largest car manufacturer and March 2018. In the domes c domes c market and
auto sales. the largest passenger car market during the month the exported 844 units of the
exporter, achieved highest company sold 17,202 units E os series thus clocking a
The total number of vehicles Financial Year Domes c Sales achieving 26.7% growth y-o- total of 13,662 units. In the
sold in the domes c market of 5,45,243 units compared y. month of March 2018, Toyota
during March 2019 to 5,36,241 units in 2017-18 Kirloskar Motor sold a total of
aggregated to 1,908,126 registering a domes c HCIL exported a total volume 12,539 units in the domes c
units against 2,224,224 units growth of 1.7%. of 4,794 units during FY 18- market and exported 1,017
sold in the same month last 19 with an export of 38 units units thus clocking a total of
year, represen ng a slide of HMIL’s total sales for March during the month of March 13,556 units.
14.21% y-o-y. This down ck 2019 stood at 61,150 units as 2019.
in domes c sales numbers against 60,507 units in March Renault India sold 7,127
was contributed by 2018. Of this, the domes c Rajesh Goel, SVP & Director, units in March 2019 against
unfla ering sale numbers by sales accounted for 44,350 Sales & Mktg, HCIL, “We have 7,683 units sold in March
all segments of industry. units (48,009 units) and the closed the FY 2018-19 with a 2018. The company exported
During the month Passenger overseas sales grew to growth of 8%. Strong sales 750 units accruing a total sale
vehicle sales accounted for a 16,800 units from 12,498 efforts from the dealers and of 7,877 units during the
total of 291, 806 units against units in March 2018. company during the month.
300,722 units sold in March prevailing tough market
2018. Two-wheeler sales at Commen ng on the financial scenario resulted in this Mahindra & Mahindra Ltd’s.
1,440,663 units were less by year closing, Vikas Jain, growth rate, which is ahead (M&M), auto sales
17.31% y-o-y at 1,742,307 Na onal Sales Head, HMIL, of the industry.” performance for the financial
units. Commercial Vehicle said, "With a strong year ended March 31, 2019,
sales accrued 109,030 units commitment for making Ford India sales tally during stood at 6,08,596 vehicles,
against 108,730 units sold in Happy Life of our customers the month added to 27,340 compared to 5,49,153
March’18 growing marginally through Open Innova ons, units against 27,580 units vehicles during FY-18,
by 0.28%. Three Wheelers Best-in-segment products sold in March 2018. In the registering a growth of 11%.
sold 66,280 units, less by and Excellent Customer domes c market, the Passenger Vehicles segment
8.54% y-o-y. Service Experience, we company sold 8,271 units (which includes UVs, Cars &
closed the financial year and exported 19,069 units. Vans) sold 27,637 vehicles in
The country’s largest 2018-19 on a posi ve note March 2019 in the domes c
carmaker, Maru Suzuki with a growth of 1.7% and Toyota Kirloskar Motor market, registering a growth
India (MSIL) reported a 2.2% highest- ever domes c (TKM) recorded a sales of 4.2%. The company sold a
decline in sales to 155,410 volume of 5,45,153 units growth of 7% in FY 18-19 as total of 1,307 vehicles in the
units (including exports) mee ng and exceeding our compared to FY 17-18. interna onal market gaining
during the month of March customer aspira ons." by 11.0% y-o-y.
2019. This includes 145,031 Commen ng on the sales
Honda Cars India (HCIL) performance, N Raja, Deputy Rajan Wadhera, President,
Managing Director, TKM,

8 F A D A Journal April 2019 | fada.in

Industry Track

Automo ve Sector, M&M, segment, M&M sold 1,169 VE Commercial Vehicles during the month slided by
said, "We have closed FY-19 vehicles for the month. The (VECV) recorded sales of 46.7% y-o-y. HMSI however
with robust double digit LCV segment clocked sales of 8,245 units in March 2019 as turned in creditworthy export
growth of 11% at an overall 23,254 vehicles in its compared to 9,245 units in performance, its exports at
level, despite strong domes c sales during the March 2018, recording a 26,811 units grew by 16.0%.
headwinds faced by the month of March 2019. decline of 10.8%. In the Company’s cumula ve sales
Indian automo ve industry Exports for the month stood domes c CV market, Eicher was down 43.4% y-o-y.
this year. The commercial at 2,201 vehicles, a growth of branded trucks & buses
vehicles segment and 10.5% y-o-y. recorded sales of 7,329 units TVS Motor Company (TVS)
exports have also posted in March 2019 as compared posted a 1.5% de-growth in
strong growth rates of 15% Tata Motors CVBU sales in to 7,980 units in March 2018 March 2019, witnessing total
and 37% respec vely." the domes c market for FY19 represen ng a decline of two wheeler sales of 310,901
(April 2018 – March 2019), 8.2%. On the Exports front, units vis-a-vis 315,765 units
Tata Motors PVBU sales in recorded a growth of 17% Eicher branded trucks & in the same month last year.
the domes c market for FY19 with 468,692 units compared buses recorded sales of 916 Domes c sales of TVS
(April 2018-March 2019) to 399,317 units sold during units in March 2019 as reading 247,710 units in
were the highest ever in the the same period last year. compared to 1,265 units in March 2019 down 6.6% from
last six years at 210,143 units, The CV domes c sales in March 2018, represen ng a 265,166 units a year back.
a growth of 12%, compared March 2019, grew by 4.1% at decline of 27.6%.
to 187,321 units sold last 48,374 units, compared to India’s second largest two-
fiscal. Due to con nued weak 46,470 units sold last year. Two-wheeler sales also faced wheeler manufacturer –
consumer sen ments, the PV equally challenging mes Bajaj Auto achieved double
domes c sales in March 2019 The M&HCV sales in the during the month. Se ng the digit growth, its domes c
witnessed, a drop of 11.4%, domes c market for FY19 scorching pace, Hero sales of two-wheelers at
at 20,353 units, as compared (April 2018–March 2019), MotoCorp con nued to further 220,213 units during the
with 22,970 units sold in the registered a growth of 12% at strengthen its market month growing by 38.5% y-o-
same month last year due to 151,105 units compared to leadership by surpassing 7.8 y. However, the company’s
low customer sen ments in 134,399 units sold last fiscal. million unit sales in the FY 2019. exports slipped by 6.9%
the market. With Nexon, The M&HCV domes c sales offset the gain in domes c
Hexa and Harrier joining the in March 2019 however, With 581,369 units sold in market and reduced the
new genera on UV products, declined by 0.6% at 21,133 the month of March, Hero growth rate to 19.9% in its
the segment grew by 16% units, compared to 21,256 MotoCorp capped off FY’19 cumula ve sales of two-
over last year. units sold in March 2018. The with sales of 7,820,745 units wheelers in March 2019.
LCV sales in the domes c of motorcycles and scooters
The company’s sales from market for March 2019, during the 12-month period. India Yamaha and Suzuki
exports in March 2019 was at reported a strong growth of Motorcycle also saw decent
447 units, gaining by 23.5% 8% at 27,241 units compared The sales during the month growth of 10.2% and 25.3%,
over last year. The new to 25,214 units sold in the of March have been lower respec vely, in their domes c
regula ons and poli cal same month previous year. due to a conscious effort by sales of two-wheelers.
uncertainty in Sri Lanka and the company to bring down
slump in Middle East took a Ashok Leyland sold 20,521 the inventory levels in the With economy and
tall on the overall Industry commercial vehicles in March system. The company sold manufacturing not growing
volumes in these markets. 2019 in the domes c market 553,302 units in the domes c at a pace required,
against sale of 21,533 vehicles market less by 21.5% y-o-y. uncertainty con nues to
Reflec ng the slowdown in in March 2018 registering 4.7% However, in the interna onal haunt people making them
the overall manufacturing de-growth y-o-y. The company market, the company gained postpone their dream
sector and in economic however gained by 10.2% in by 9.5% selling 28,067 two- vehicle purchases. Demand
growth, Mahindra & the interna onal market by wheelers in March 2019 for new vehicles may
Mahindra Commercial selling 1,014 vehicles during compared to corresponding improve once new
Vehicle unit sold 24,423 the month against 920 vehicles sales figure of 25,623 2- government assumes office
vehicles in March 2019, as sold in March 2018. The wheelers a year ago. and s mulus package
against 25,496 vehicles in company sold a total of 15,235 announced in the Union
March 2018 in the domes c medium & heavy CVs and Honda Motorcycle & Scooter Budget is rolled out along
market. In the Medium and 5,286 LCVs during the month. India (HMSI) domes c sales with the new industrial
Heavy Commercial Vehicles numbers at 222,325 units, package.

fada.in | April 2019 F A D A Journal 9

India Economics

RBI Cuts Repo Rate by 25bps | Infla on Climbs | IIP Declines |
Trade Deficit Inches Up

The Monetary Policy H1FY20 forecast to 6.8-7.1%. a possible recovery in the to 6% while keeping their
Commi ee of the RBI cut Indicators of industrial capex cycle going ahead. stance at neutral. The infla on
the policy repo rate by 25 bps produc on such as IIP and Moreover, rising disposable forecasts have been revised
in its first bi-monthly Monetary Eight Core Industries Index incomes of household due to down for H1FY20 to 2.9-3.0%
Policy Mee ng of FY20 from growth have been muted for the FY20 budget benefits may and for H2FY20 to 3.5-3.8%
6.25% to 6%. However, the the past few months, while on act favourably on consump on implying that the RBI expects
commi ee decided to keep the consump on front, high spending going ahead. infla on for the whole of FY20
their policy stance at “Neutral”. frequency demand indicators to fall short its medium term
The rate cut follows a 25 bps cut such as Auto sales and Import RBI permi ed banks to infla on target of 4%.
in the last MPC mee ng in Feb- demand have con nued to reckon a further 2% of their
19 and indicates con nued decline. government securi es held Feb-2019 IIP growth shrinks
dovishness of the central bank. under SLR to meet their LCR to a meagre 0.1% YoY, on the
The MPC highlighted that the requirements, which would back of contrac on in
• The infla on forecast for strong bank credit growth of lead to a much needed Manufacturing and
H1FY20 has been around 14% may not be injec on of liquidity and con nued dismal
revised downward to broad based as credit to possible credit boost in the performance of Electricity.
2.9-3.0% from a forecast MSMEs remains tepid. banking system. On the use basis front, Capital
of 3.2-3.4% in the last Therefore, the need for goods have contracted for
policy mee ng. The be er transmission of Further Up ck in second consecu ve months
FY20 infla on forecast is monetary policy in order to Headline Infla on de-growing at -8.8% YoY a er
now below RBI’s medium increase the credit growth a contrac on of -3.4% YoY in
term target of 4% CPI was emphasised. Some The up ck in headline February. The lowest IIP
infla on. improvement was seen in the infla on came on the back of Growth since June 2017 shows
Capacity U lisa on of the some rise in food and fuel signs of inherent weaknesses in
• The Commi ee noted manufacturing sector which infla on. This comes as the Indian Economy.
that the output gap rose to 75.9% in Q3 from Monetary Policy Commi ee
remains nega ve and 74.8% in Q2 according to the had cut the policy repo rate Manufacturing grew by -
highlighted the need to RBI OBICUS survey, indica ng during last two mee ngs, 0.3% YoY, lower than the
spur private investment bringing the current repo rate growth of 1.05% YoY in the
through increased
broad-based credit Up ck In Headline Infla on; Core Infla on Eases Further
growth. Global economy
remains the key
headwind for the
domes c economy.

• FY20 GDP growth has
been projected at 7.0%,
in line with slowdown in
various produc on and
consump on indicators,
on a baseline
assump on of crude at
US$ 67/barrel and
US$/INR at 69.

On the growth front, the
Commi ee cut the FY20 GDP
growth forecast to 7.2% and

10 F A D A Journal April 2019 | fada.in

India Economics

previous month and lower Trade Deficit came in at US$ month. Oil exports grew • Gold and Silver Imports

t h a n t h e F Y 1 9 Y T D I I P 10.9 Bn in March, making by 6.5% YoY to US$ 3.5 grew by 22% YoY though

Manufacturing at 4.4% YoY. the FY19 trade deficit at US$ Bn. Non-Oil Exports grew on a very low base. Thus,

T h o u g h t h e co nt ra c o n 176.4 Bn up from US$ 162 Bn by 11.59% YoY to US$ the Non-Oil Non-Gold &

comes on a strong base, the in FY18.The March trade 29.01 Bn. Silver imports

decline in Manufacturing deficit is down -19% YoY, • March 2019 imports contracted by 2% YoY in
shows the slack economic however, it has seen a grew by just 1.4% YoY to March.
ac vity in real economy. Out sequen al rise from US$ 9.5 US$ 43.4 Bn. Petroleum •
of 23, only 10 industries Bn in February 2019. Imports grew by 5.54% The growth in Oil Trade
have shown a posi ve YoY to US$ 11.7 Bn. captures the impact of
growth. The slowdown in Key Highlights higher crude price. The

Manufacturing is largely • March 2019 exports grew • Oil Trade balance for fla sh growth of Non-

due to muted demand both by 11.02% YoY to US$ March 2019 is at US$ - Oil Imports shows the

in Domes c and Global 32.4 Bn, up from US$ 8.2 Bn. Non-Oil Trade slack domes c demand

Economy. 26.6 Bn in the previous Balance is at US$ -2.6 Bn in the economy.

IIP Growth Slows Again

Recovery in Trade Deficit Due to Decline in Imports

fada.in | April 2019 F A D A Journal 11

F A D A News

F A D A Media Coverage on April’19 Sales

The Economic Times

CNBC TV18

The Times of India

Economic Times (Guj.)

Andhra Prabha

The Morning Standard Andhra Jyothi Dainik Navjyoti

Financial Express

12 F A D A Journal April 2019 | fada.in

F A D A News

F A D A Media Coverage on April’19 Sales

Business Standard

Anand Bazar Patrika

Deccan Chronicle Divya Bhaskar
BTVI Economic Times (Hindi)

Telegraph Asian Age Hindustan Times Mint

fada.in | April 2019 F A D A Journal 13

Regional News

F A D A President being Falicitated at 6th AGM of Raipur Automobile Dealers Association

Raipur Automobile Dealers Association (R A D A) Organises Press Conference

Media Coverage

Central Chronicle Patrika Chhattisgarh Patrika

14 F A D A Journal April 2019 | fada.in



3rd June 2019

Vyapar tamil naduOneNation | OneAssociation

Building the future

Venue: Radisson Blu Egmore, Chennai

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 #VyaparTamilNadu

The gala evening will be held in Chennai on Monday the 3rd of June, 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;
Ahmedabad; and Bengaluru Egmore, Chennai will be the next destination to hold this event
where we will witness this expanse of established businessmen and women representing the
state of Tamil Nadu 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
nicknamed as The Detroit of India, i.e. Chennai. 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 Tamil Nadu. 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 in Chennai at Hotel Radisson Blu Egmore on 3rd June 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.

3rd June 2019

Vyapar tamil naduOneNation | OneAssociation

Building the future

Venue: Radisson Blu Egmore, Chennai

One Na on | One Associa on FEDERATION OF AUTOMOBILE DEALERS ASSOCIATIONS

804-805, Surya Kiran, 19, Kasturba Gandhi Marg, New Delhi - 110 001

T +91 11 6630 4852, 2332 0093, 2332 0095 | E [email protected]

fadaindia.org fadaindia FADA New Delhi FADA_India www.fada.in FADA India

Govt. Circular

Clarification in Respect of Utilization of Input Tax Credit Under GST

CBIC Circular No. 98/17/2019-GST dated 23 April 2019

F. No. CBEC – 20/16/04/2018 – GST
Government of India

Ministry of Finance, Department of Revenue
Central Board of Indirect Taxes and Customs, GST Policy Wing, New Delhi

To,
The Principal Chief Commissioners / Chief Commissioners / Principal Commissioners / Commissioners of Central Tax (All)
The Principal Director Generals / Director Generals (All)
Madam/Sir
Subject: Clarifica on in respect of u liza on of input tax credit under GST – Reg.
Sec on 49 was amended and Sec on 49A and Sec on 49B were inserted vide Central Goods & Services Tax (Amendment) Act,
2018 [hereina er referred to as the CGST (Amendment) Act]. The amended provisions came into effect from 1st Feb’19.
2. Various representa ons have been received from the trade and industry regarding challenges being faced by
taxpayers due to bringing into force of sec on 49A of the Central Goods and Services Tax Act, 2017 (hereina er referred to as
the CGST Act). The issue has arisen on account of order of u liza on of input tax credit of integrated tax in a par cular order,
resul ng in accumula on of input tax credit for one kind of tax (say State tax) in electronic credit ledger and discharge of
liability for the other kind of tax (say Central tax) through electronic cash ledger in certain scenarios. Accordingly, rule 88A was
inserted in the Central Goods and Services Tax Rules, 2017 (hereina er referred to as the CGST Rules) in exercise of the powers
under Sec on 49B of the CGST Act vide no fica on No. 16/2019- Central Tax, dated 29th March, 2019. In order to ensure
uniformity in the implementa on of the provisions of the law, the Board, in exercise of its powers conferred by sec on 168 (1)
of the CGST Act, hereby clarifies the issues raised as below.
3. The newly inserted Sec on 49A of the CGST Act provides that the input tax credit of Integrated tax has to be u lized
completely before input tax credit of Central tax / State tax can be u lized for discharge of any tax liability. Further, as per the
provisions of sec on 49 of the CGST Act, credit of Integrated tax has to be u lized first for payment of Integrated tax then
Central tax and then State tax in that order mandatorily. This led to a situa on, in certain cases, where a taxpayer has to
discharge his tax liability on account of one type of tax (say State tax) through electronic cash ledger, while the input tax credit
on account of other type of tax (say Central tax) remains un-u lized in electronic credit ledger.
4. The newly inserted rule 88A in the CGST Rules allows u liza on of input tax credit of Integrated tax towards the
payment of Central tax and State tax, or as the case may be, Union territory tax, in any order subject to the condi on that the
en re input tax credit on account of Integrated tax is completely exhausted first before the input tax credit on account of
Central tax or State / Union territory tax can be u lized. It is clarified that a er the inser on of the said rule, the order of
u liza on of input tax credit will be as per the order (of numerals) given below:

5. The following illustra on would further amplify the impact of newly inserted rule 88A of the CGST Rules:
Illustra on:

18 F A D A Journal April 2019 | fada.in

Govt. Circular

Amount of Input tax Credit available and output liability under different tax heads
Op on 1:

Op on 2:

6. Presently, the common portal supports the order of u liza on of input tax credit in accordance with the provisions
before implementa on of the provisions of the CGST (Amendment) Act i.e. pre-inser on of Sec on 49A and Sec on 49B of the
CGST Act. Therefore, ll the new order of u liza on as per newly inserted Rule 88A of the CGST Rules is implemented on the
common portal, taxpayers may con nue to u lize their input tax credit as per the func onality available on the common portal.
7. It is requested that suitable trade no ces may be issued to publicize the contents of this circular.
8. Difficulty,ifany,intheimplementa onofthisCircularmaybebroughttotheno ceoftheBoard.Hindiversionwouldfollow.

(Upender Gupta)
Principal Commissioner (GST)

fada.in | April 2019 F A D A Journal 19

GST Update

Changes in Utilizing Input Tax Credit (ITC)

DR SANJIV AGARWAL tax, and the amount 98 dated 23.04.2019 is to of u liza on of input tax
Chartered Accountant remaining, if any, may be clarify the applica on of new credit in accordance with
M/s Agarwal Sanjiv & u lised towards the payment Rule 88A and its uniform the provisions before
Company of central tax and State tax or implementa on. The Circular implementa on of the
Union territory tax, as the case clarifies and illustrates the provisions of the CGST
Sec on 49 of the CGST Act, maybe,in anyorder: manner (order) of u liza on (Amendment) Act i.e. pre-
2017 contains provisions of ITC of IGST / CGST/SGST or inser on of Sec on 49A
in rela on to payment of tax, Provided that the input tax UTGST by way of examples. and Sec on 49B of the
interest, penalty and other credit on account of central CGST Act (01.02.2019).
amounts. Further, sec on 49 tax, State tax or Union The below tables illustrate
(5) of CGST Act, 2017 territory tax shall be u lised the new provision as also 2) Till the new order of
provides manner of u lizing towards payment of clarified vide CBIC Circular u liza on as per newly
Input Tax Credit (ITC) for integrated tax, central tax, No. 98/17/2019-GST dated inserted Rule 88A of the
payment of GST output tax State tax or Union territory 23.04.2019: CGST Rules is
liability, e.g IGST can be set off tax, as the case may be, only implemented on the
against IGST and then CGST a er the input tax credit It is important to note the common portal, taxpayers
and SGST, CGST can be set off available on account of following points for smooth may con nue to u lize
against CGST and then against integrated tax has first been implementa on: their input tax credit as per
IGST, and SGST can be set off u lised fully.” the func onality available
against SGST and then against 1) Presently, the common on the common portal.
IGST. Accordingly, the following portal supports the order
was to be implemented w.e.f.
No fica on No. 16/2019 29.03.2019 which seeks to 1) U liza on of ITC as per No fica on dt. 29.03.2019 (Op on 1)
nullify the earlier manner
Vide No fica on No. prior to 01.02.2019 and 2) U liza on of ITC as per No fica on dt. 29.03.2019 (Op on 2)
16/2019-CT dated 29.03.2019:
29.03.2019, following Rule
88A has been inserted which a) ITC on IGST has to be first
is effec ve from 29.03.2019 fully u lized towards IGST
itself. It provides as follows: and balance towards CGST
/ SGST / UTGST in any
“Rule 88A. Order of u liza on order and in any
of input tax credit- Input tax propor on.
credit on account of integrated
tax shall first be u lised b) For u liza on of balance
towards payment of integrated IGST credit towards CGST /
SGST / UTGST, there is no
order of set off as earlier
prescribed.

c) Credit can be taken in any
order as per convenience /
requirement.

d) Set off ITC of CGST / SGST /
UTGST can be u lized
towards IGST, CGST, SGST or
UTGST but only a er fully
exhaus ng the ITC of IGST.

The objec ve of Circular No.

20 F A D A Journal April 2019 | fada.in



Dealership Profitability

MANPOWER PRODUCTIVITY

Integral Element of Dealerships Profitability

“Stressing output wheel keeps moving Rota on of capital is driven by This paper focusses on
is the key to regardless of the rocky road volumes, but ensuring 100% People, the movers of the
improving beneath?” capital is rotated is only wheel, and talks about how
produc vity, possible through reten on. In they can tread on the path to
whereas Times are changing and ways recent mes, most op mising returns.
increasing ac vity of doing business are evolving dealerships are suffering
results in the much faster than we can because they are only Dealers need to focus on
opposite.” think. We are faced with a focusing on either of the two – Return on Investment (RoI) for
dichotomy of sorts, where volume or reten on. Focusing manpower, par cularly those
- Paul Gauguin se ng performance on volume alone can lead to who are directly involved in
benchmarks that are focused capital erosion and only ensuring effec ve capital
As the Automo ve industry on end results might not yield focusing on reten on can rota on.
con nues to ba le strong desirable results, while affect growth adversely. An
headwinds with subdued business as usual may not effec ve business model How much investment does a
sales, produc on cuts, liquidity result in op mum u lisa on requires an op mum balance dealership make on its
crunch, unavailability of retail of the resources at hand. between the two, and to workforce (including salary,
finance, high interest rates and achieve this, one needs to training costs, u lisa on of
uncertainty due to elec ons, Long-term and short-term build a strong sustenance assets, allowances and
the dealership business is strategy model. incen ves) and what return is
finding the going tough. Foot- the workforce genera ng in
falls have reduced and so have “You can’t grow A dealer’s business rests on terms of business?
incen ves for the sales force. In long-term if you three important pillars, which,
such tes ng mes, the only can’t eat short- we at PwC call the 3 Ps – A simple quadrant analysis
remedy le is to look inwards term. Anybody Prospect, People and Process. (see Fig. 1) will help a dealer
and work on streamlining can manage If one gets these three right, understand the workforce
opera ons. short. Anybody then Profitability (the fourth P) mix. It is a myth that we can
can manage long. is just a deriva ve. only have people who are
An automobile dealership is Balancing those superstars and generate
the sum of different parts, two things is
where several businesses what
come together under one roof management is.”
to achieve one purpose for
the dealer ― profitability. - Jack Welch
These businesses have
processes and systems, which One of the meless
enable them to func on fundamentals of the
efficiently, and are centrally dealership business is rota on
connected to the workforce of capital, and when
that runs it. This gives rise to economic condi ons are not
the ques on, “How are we favourable, how quickly one
keeping our workforce can turn the cycle around
aligned and mo vated decides how fit one is to
enough to ensure that the survive.

22 F A D A Journal April 2019 | fada.in

high volume and increased Dealership Profitability
reten on compared to
others. A dealer’s workforce fada.in | April 2019 F A D A Journal 23
will always be mix of people
who exist between two ends
of the spectrum – runners
and miners, who may not be
superstars, but are
nevertheless equally
important for the wheel to
keep moving in the right
direc on.

Balancing the right mix

“All companies of
any size have to
con nue to push
to make sure you
get the right
leaders, the right
team, the right
people to be fast
ac ng, and fast
moving in the
marketplace.”

- Steve Ballmer

A robust workforce model is
dependent on a mix of people
with different competencies
working towards a common
objec ve. The kind of
resource mix required to yield
op mum results will depend
on dealers’ vision and the
balance needed to op mise
their RoI. To understand this
be er, we have suggested a
resource mix (see Fig. 2) on
the basis of our experience of
working with different
categories of dealerships
across the country.

As much as 35-40% of the

Dealership Profitability

workforce should fall into the workforce. The focus at of work and eventually a workforce, but it faces
the superstar category, and the top of the pyramid results in an enhanced ROI. challenges, and overcoming
generate higher volumes should be on sustenance these requires more than
and be er reten on from and/or reten on. Ironically, many incen ve financial compensa on.
others; 25-30% should be plans come close to ignoring
runners, genera ng high “Mo va on will core performers. This is not In this context, we need to
volumes at a lower almost always in the best interest of a remember that the idea of
reten on, and 20-25% can beat mere dealership. Core performers being successful is more
be miners, with be er talent.” usually represent the largest mo va ng than the
reten on than runners but part of the sales team and prospect of earning more
at a lower volumes. - Norman Ralph dealers cannot meet their money. Dealers’ workforces
Augus ne objec ves if the former are should feel truly successful,
Laggards are a deriva ve of not in the game. and to achieve this they
this quadrant analysis, and need a strong sense of
should be clearly iden fied The right mix of reten on- purpose to drive desirable
and either re-trained or based and volume-based
rotated. While the
percentages suggested above
may vary, depending on the
geography, brand,
compe on or dealership
philosophy, it is important to
have a clear concept of
segrega ng people with
varied competencies so that
end result of achieving an
op mum balance between
volumes and reten on is
achieved.

Once we have analysed and Right incen ve mix for incen ves (indicated in blue in results. Moreover, to build
segregated a workforce, the mutual growth Fig. 4 above) is the key for a high-performing team, all
next step is to plan ensuring an op mum balance incen ves and vision or
employees’ engagement on How a workforce is between the two, and for goals should contribute to
the basis of the quadrant in incen vised builds a strong se ng high benchmarks the team’s purpose. Most
which each employee founda on for its where everyone strives to importantly, it should be
resides. Long-term produc vity. Frequently, achieve more. borne in mind that to
strategies should be alignment towards extremes develop successful teams
carefully designed with a (volume or reten on) It is also important to one needs to demonstrate
view to push employees adversely affects the differen ate between to them how their efforts
upwards in the pyramid effec veness of incen ve- performers and non- will affect the success of an
(see Fig. 3). This can be related schemes. Smart performers so that the right organisa on and its
achieved through planning ensures the right people are rewarded in the stakeholders in the long
competency buildup incen ves for the right kind right sprit. Genera ng run.
programmes, and training business is a cri cal need for
and enhancing the skills of

This paper is the first of the three-part series by the Automo ve Retail Centre of Excellence (ARCoE) of PricewaterhouseCoopers (PwC).
PwC works with 100+ dealers and several OEMs across the country on their network-related ini a ves, such as profitability, performance
improvement studies and opera ons diagnos cs. Any ques ons or sugges ons are welcome, and should be sent to
[email protected] and/or [email protected].

fada.in | April 2019 F A D A Journal 24



Business Achievers

How Symphony Got Its Rhythm Back

ACHAL BAKERI, FOUNDER, CHAIRMAN & MD, SYMPHONY

Achal Bakeri learnt the hard way that diversifica on is a double-edged sword. He focussed on one single product and has
brought innova on and growth back to his company.

What’s common installed in—believe it or the world, and built a posi on among all listed
between a wealthy not—his bathroom. The profitable business in the companies in India vis-à-vis
private-sector banker, a Walmart store, Whirlpool’s process. profitability and market value,
leading film actor, a Walmart factory, and the shrine Symphony ranks as a top 500
store in the US, a Whirlpool complex in Mecca use The Ahmedabad-based company on both parameters.
factory in China, the holy Symphony to cool their large company ended fiscal year
shrine complex in Mecca, and premises, where installing air 2017-18 with a turnover of That’s quite an achievement
several middle-class families condi oners (ACs) just didn’t ₹854 crore—a six-year for a single product company
in India? All of them use air make sense. And middle-class compound annual growth which its Chairman and
coolers of one shape or families get some respite from rate (CAGR) of 19.27%; with a Managing Director - Achal
another, made by Symphony, the scorching Indian summer profit a er tax of ₹193 Bakeri, 59, started in the
the world’s largest seller of using Symphony’s air coolers, crore— a six-year CAGR of basement of an under-
air coolers. a much cheaper alterna ve to 24.04%. Symphony’s market construc on real estate
Air-condi oners. capitalisa on is close to project being developed by
A Mumbai-based banker ₹8,900 crore and its stock his family in Ahmedabad in
enjoys some cool breeze, An impressive and diverse price has tripled over the 1988.It’s even more
courtesy Symphony, when he clientele, isn’t it? By past five years. Based on its commendable when one
sips his morning tea, si ng in assiduously focussing on revenue, Symphony rose to considers that Symphony had
the terrace garden of his innova ng and selling one number 325 on the 2019 a near-death experience in
luxurious apartment. A film product, and one product Fortune India Next 500 list 2002 when a diversifica on
actor, a leading man of many alone, Symphony has from 369 in the previous strategy went awry. It became
yesteryears’ blockbusters, become synonymous with air year’s list. But if one were to a sick company, with its net
has a Symphony air cooler coolers in India and around look at Symphony’s rela ve worth fully eroded, which was

26 F A D A Journal April 2019 | fada.in

Business Achievers

admi ed under the purview of L to R: Vijay Joshi, CEO - India; Rajesh Mishra, President - Sales & strategy to grow in these
the erstwhile Board for Mktg; Nrupesh Shah, ED - Corporate Affairs; and Falgun Shah, CEO - businesses was flawed. The
Industrial and Financial Interna onal Subsidiaries, Symphony. shortcomings ranged from
Reconstruc on (BIFR). technical flaws in the product
“My father suggested one Over the next few years, design of water heaters to
An architect by training who day: ‘Why don’t you make a Symphony rapidly scaled up uncompe ve pricing due to
completed his MBA in real be er air cooler?’ Something sales and distribu on across lack of scale in washing
estate finance from the U.S., clicked in my mind and I India. It moved out of the machines and the absence of
Bakeri returned to India in began working on the idea in basement in which it started a door-to-door sales strategy
1986 to join his family’s earnest,” the Symphony opera ons and established a for water purifiers.
thriving real estate business. founder recollects. factory to manufacture air
“When I joined the family coolers. In 1994, Symphony The net result was that
business, it was already well With li le idea of how an air had a successful ini al public Symphony found itself
established and I felt that as a cooler works to begin with, offering and was cruising saddled with unserviceable
newcomer, I would be just Bakeri bought a few from the along un l investors and debt; it had exhausted all its
another cog in the wheel. I felt market and opened them up analysts called upon the reserves and was referred to
restless and wanted to do to understand the company to leverage its brand the BIFR. “We didn’t know if
something on my own,” Bakeri engineering. With the help of and distribu on to diversify we would survive. But we
says, si ng in his sprawling some technicians and into other household electrical were determined to do our
office on the top floor of engineering professors, appliances to counter the best. Closing down the
Symphony’s aesthe cally- Bakeri developed an air seasonal nature of the air company and moving on to
designed headquarters in cooler that resembled an AC cooler business, which booms something else—leaving
in its aesthe cs, was compact during the summer months. behind a trail of debt—would
“We didn’t know if in size, made of plas c, and have been the easiest thing
thus lightweight and The company ended up to do. But we didn’t want
we would survive... portable. The product was ge ng into a wide variety of that,” Bakeri says. Between
Closing down the launched in 1988 in products such as water 2002 and 2004, Symphony
Ahmedabad, known for its dry heaters, purifiers, washing exited all other categories
company and and scorching summer heat, machines, domes c flour except air coolers. The capital
moving on to and met with instant success. mills, room heaters, and expenditure on these new
something else - “We were caught off-guard by exhaust fans. Though Bakeri ini a ves had to be wri en
leaving behind a the success and couldn’t keep prides himself on the fact off, but at least it saved on
trail of debt - would up with demand,” Bakeri says. that Symphony was an working capital. It resumed its
have been the Priced at ₹4,300, Symphony’s innovator in many of these focus on innova ng in air
easiest thing to do. first cooler cost a li le more product categories and came coolers and came out with
But we didn’t want than 10% of what a 1.5 tonne out with designs that later products priced between
AC cost in those days and influenced similar offerings ₹5,000 and ₹20,000, boas ng
that. operated at a frac on of the from other brands, he admits of features such as touch-
la er’s running costs. that his company’s execu on based and mo on-based
”ACHAL BAKERI control sensors, and mosquito
repellent and air cleaning
Ahmedabad’s Bodakdev area. technologies. “We try and
ensure that our rate of
When the Bakeri family product innova on outpaces
moved into its new home in the rate at which our products
the summer of 1987, it had are copied by others,” says
its first brush with air coolers Vijay Joshi, CEO, Symphony’s
when it had to deploy some India business.
of them to cool areas of the
house with high ceilings. Simultaneously, Symphony
Though effec ve, these moved to an asset-light
coolers were ugly and noisy. model under which it closed
down its own factory and
outsourced manufacturing to

fada.in | April 2019 F A D A Journal 27

Business Achievers

third par es while owning even before Symphony a Symphony. And once he increasing its size and scale.
the design and intellectual became the brand it is at goes in asking for a On the back of these
property. The asset-light present, has some history to Symphony, the dealer may ini a ves, Symphony wiped
model has seen the return on it. Apart from real estate, cross-sell some other out its losses and exited the
capital employed (RoCE) Bakeri’s family had some products to him,” says Bakeri. BIFR in 2009.
from Symphony’s core business interests in “Moreover, we incen vise
business of air coolers processed tex les. He the trade channel to buy While the period between
improve manifold. observed that the real estate from us during the non- 2002 and 2009 may have
Symphony’s consolidated business didn’t face any summer months since we been painful for Symphony, it
core RoCE (excluding challenges with respect to give them preferen al rates certainly learnt from its
treasury income) stood at outstanding receivables that help their margins. experience and used it to
90% in 2017-18. The since a buyer had to make the Symphony means advance. turn around the companies it
company’s Ebitda (earnings full payment before ge ng No one ques ons that acquired around the world.
before interest, tax, deprecia on the keys to his house. On the anymore.”
& amor sa on) margin also other hand, the processed In 2009, Symphony acquired
improved from 26.6% in FY12 tex le business would suffer Also, from an earlier strategy IMPCO, the US-based
to 32.1% in FY18. from a cash flow mismatch as of ‘one market, many company that invented the air
customers would pick up the products’, Symphony has cooler in 1939, and
Nrupesh Shah, ED - product on credit and then since transi oned to a manufactured the product
Corporate Affairs, Symphony, renege on payment on flimsy revamped strategy of ‘one from its facility in Mexico.
says that wiser from its tryst grounds. And he wasn’t product, many markets’. As a Bakeri says his company
with near-ex nc on, there willing to take that chance result, Symphony has tapped acquired the business, which
are certain opera onal with his venture. interna onal markets with its was bleeding at the me, for a
parameters that Symphony residen al and commercial song by paying the equivalent
doesn’t compromise on, and “Dealers don’t mind paying air coolers—first via exports of ₹3.25 crore. In the decade
which govern all its business for the coolers in advance, from India, and then through since the acquisi on, IMPCO
decisions. “The aim is always even during the off season, three acquisi ons in has sold air coolers worth $100
to maximise RoCE from the because they know that any countries as diverse as million and yielded ₹100 crore
core business and be in a prospec ve buyer looking for Mexico, China, and in profits, Bakeri says. One of
situa on where we enjoy at an air cooler is looking to buy Australia—thereby the ways in which Symphony
least 90% free cash flow from managed to turn IMPCO
our profit a er tax,” says
Shah, who joined Symphony
in 1993. “We have followed an
asset-light, capital
expenditure-light, & working
capital-light business model,
and focussed on innova on,
new launches, and a ersales
service. As a result, we have a
45% share of the organised
market for air coolers by
volume, 50% share by value,
and 75% share of profits.”

Symphony’s other key
business achievement has
been its ability to sell its
products in the trade channel
against 100% advance
payment, even during the
non-summer months.

Bakeri says that his insistence
on 100% upfront payment,

28 F A D A Journal April 2019 | fada.in

around was by replica ng its says Bakeri. “We did simple Business Achievers
own asset-light model by hiving things like reduce overheads
off its factory, which had and costs, become frugal with dealers through loyalty schemes
become prime real estate, and capital employed, and as well as spending more on
outsourcing manufacturing improved top line.” digitalmarke ng.
IMPCO also played a strategic
role in expanding Symphony’s But it isn’t as if Symphony is Bakeri hopes that if India
horizons as it opened the bere of its share of experiences a normal
company to the possibility of challenges. Two erra c summer in 2019, Symphony
becoming a major branded summers in 2017 and 2018 can go back to recording its
player in the commercial and have led to a slowdown in the usual volume levels & top line
industrial cooling market. In rate of sales growth. As a growth. Meanwhile, the
2011, Symphony started result, the company’s share company is focussing more on
impor ng industrial and price has seen a sharp interna onal markets and
commercial air coolers from decline of 33% over the past industrial cooling to drive
Mexico to India; and expor ng one year. “Two consecu ve growth.
residen al air coolers from weak summers have made
India to Mexico, thereby the Street believe that the air The company’s latest
leveraging the synergies cooler category is not here to investor presenta on for
between the two markets. stay for long (we think 2019 says that the market for
otherwise). Symphony’s centralised air condi oning
Symphony followed this up business model of channel- in India is worth around
with the acquisi on of filling during off-season ₹4,000 crore and the market
Keruilai, China’s first air quarters has made its for central air cooling could
cooler brand, in 2015. Again, performance look even more be poten ally worth more
Symphony bought the loss- challenging vs. air condi oner than that. Industrial and
making company for just players (only op cally),” says a commercial cooling products
₹1.55 crore and helped it research report by HDFC currently account for 8% of
break even. Symphony Securi es. “We con nue to Symphony’s revenue and
expects Keruilai to be remain bullish on the business Bakeri feels this segment has
profitable from 2018-19 and don’t perceive any the poten al to account for
onwards. Guangdong change in compe ve as high as 25% of an expanded
Symphony Keruilai Air strength.” top line in the future. The
Coolers (as the company is ra onale being that working
now called), makes small as To mi gate weak market condi ons in Indian factories
well as large air coolers and condi ons, Symphony is also will gradually have to come on
many of its products are now looking to deepen its a par with interna onal
shipped to India and Mexico. penetra on in the trade standards, and it is much
channel in India. Rajesh Mishra, cheaper to install and operate
Then in 2018, Symphony President of Sales & Mktg at an air cooling system than a
acquired Climate Symphony, says that studies centralised AC unit in such
Technologies, a profitable air conducted by the company large spaces.
cooler company based in have shown that eight of 10
Australia for around ₹200 customers interested in buying Given some of the present
crore. The company gave an air cooler ask for a Symphony challenges in the business,
Symphony access to product; and five of them arising from its seasonal
centralised air cooling eventually end up buying one. nature, does Bakeri feel the
solu ons for residen al The other three convert to pressure to diversify again?
purposes, as well as a larger other brands due to higher “There is a lot of untapped
footprint in the U.S. “Turning margins offered to the dealers by poten al in the air cooler
around Symphony a er it was compe tors. Mishra’s focus is market. We are conscious of
admi ed under BIFR taught us now on ensuring that even the not losing our focus again
lessons that we were able to remaining three end up buying and taking our eye off the
u lise in China and Mexico,” from Symphony by incen vising ball,” says Bakeri. He has
realised that the answers to
all his challenges have always
been “blowing in the wind”.

fada.in | April 2019 F A D A Journal 29





Technology

Preparing for Tomorrow, Today

The Japan-India Ins tute for Pu ng theory into prac ce. Students convert engineering drawings into opera on in the automo ve
Manufacturing in Mehsana, physical job works by milling, drilling and filing in the workshop. arena.
Gujarat, where Maru Suzuki
is providing ac ve support, Training equipment like welding simulators help students prac ce their The automo ve industry in
has eight industry-oriented skills in high-quality MIG welds, cri cal to the auto industry. India is among the leading
courses, repair and paint contributors to the country’s
workshops and even a small The automobile workshop encompasses comprehensive servicing, economic development,
assembly line designed to diagnos c and repair training across the en re vehicular system. contribu ng 7.1 percent to
make ready a new genera on the GDP in 2017, and forecast
of skilled personnel and to provide 10 percent by 2026,
address the looming threat of as per the Automo ve
paucity of skilled manpower. Mission Plan 2016-2026.
While the industry today
What always seems like an employs over 29 million
anomaly is that a country people in direct and indirect
renowned for its plen ful roles across OEMs, vendors
young talent also faces a and dealerships, it holds the
looming skills shortage. poten al of crea ng 65
Strange but true and the million addi onal jobs over
automo ve industry, which is the next decade, thus having a
one of the biggest employers huge responsibility to train
in India, is currently tackling and skill its required
this challenge of skilled manpower. But India Auto Inc
manpower even as it puts its cannot do it alone. The onus
shoulder to the wheel to take lies on both the government
on an era of disrup ve and industry to join hands,
technologies. collaborate and bridge the
large skill gap.
With a popula on size of over
1.3 billion, India is the second The government, with its ‘Skill
largest inhabited country on India Ini a ve’ launched in
the planet a er China, and is 2015, has been ac vely
pegged to be the youngest pushing skilling and chalking
na on by 2020 with an long-term roadmaps to
average age of 29 years, much empower youth and also
younger compared to China’s roping in industry in a big way
37 and 48 years in Japan. to mould India’s future. A
While it is the fastest growing robust example of the
economy with a GDP growth ‘Pradhan Mantri Kaushal
of 7.3 percent in CY2018, its Vikas Yojana’ (PMKVY) has
sustainability, however, come out in the form of the
depends upon the Japan-India Ins tute for
employability of this youth, Manufacturing (JIM) which
who have the energy but was born out of a far-reaching
unfortunately fall short of the thought exchange between
necessary skills required to the Indian and the Japanese
push the envelope in the real prime ministers in November
world of shop floors, 2016.
dealerships and workshops,
among other areas of core Established in May 2017, the
AS Patel Maru Suzuki JIM is a

32 F A D A Journal April 2019 | fada.in

Technology

e-up between Japan's The auto electrical domain also offers bright career opportuni es for girl studying in a 70,000 square
Ministry of Economy, Trade students in what is s ll a male-dominated industry in India. feet facility, which includes
and Industry (METI) and the free residen al
government of India, with the Assembly line fi ers get ample prac ce on simulators to master the art of accommoda on for close to
underlining industry support fi ng components to the right torque and tolerances. 300 students, who come to
coming in from the country’s study from far-off places.
leading carmaker — Maru So -skills training through the Japanese concepts of Ho-Ren-So, kaizen and
Suzuki India. The first of such 5S are key aspects of personality development and grooming. So skills, hard me le
ins tu ons to be set up within
the pact between the While technical skills are a
governments of the two must, the ins tute pays keen
countries, JIM in Mehsana a en on on impar ng so -
was recognised as an skills training as well. A recent
educa onal body offering UNDP report suggests that it is
Japanese manufacturing a ributes such as punctuality
prac ces by METI in June and communica on skills of
2017, and more recently, the an individual’s personality,
ins tute also received an ISO which are the biggest
29990 cer fica on in October inhibitors in making them
this year. suitable to be imbibed in the
industry and trained further
The ins tute, located inside to handle different
the sprawling campus of opera ons.
Ganpat University in the
Mehsana district of Gujarat, JIM offers eight different
near Ahmedabad, aims at trades, namely — ABP, ABR,
holis c development of an driver-cum-mechanic,
individual and offers courses electrician, fi er, mechanic
in mechanical, electrical, body diesel engine, mechanic
and vehicle repair — all motor vehicle and welder —
related to the different for individuals who have
opera ons within the either cleared their
automobile industry. matricula on or high school,
and are keen on a career in the
The full-fledged facility, which automo ve industry.
even boasts an auto-body Eligibility criteria includes
repair (ABR) as well as auto- wri en and dexterity tests;
body paint (ABP) workshop, is JIM also conducts a pre-hand
only the fourth of a total of colour blindness test to
110 ITIs across 27 states in the ensure that a student is
country, where Maru Suzuki deemed fit to enter the
has collaborated under its automo ve industry, where
CSR, to have its own body and this stands as a cri cal
paint repair training facili es, requirement in a high-risk
which are rather expensive field.
and cost around Rs 85 lakh to
set up. The other three ITIs to While the courses for
have these facili es include ITI electrician, mechanic diesel
Pusa, Delhi; ITI Dhoraji in engine and mechanic motor
Rajkot, Gujarat; and ITI, vehicle are all of two-year
Tollygunge, Kolkata. dura on, the remaining ones
are one-year programs, with
Housed in a 2-acre plot, JIM the excep on of driver-cum-
sees around 400 students mechanic, which only needs
six months of training on a

fada.in | April 2019 F A D A Journal 33

Technology

simulator and in the Component fabrica on skills can come in handy while performing a cri cal with Maru Suzuki having
automobile workshop. repair job. Here a student drills a hole in a cylinder head. invited a Japanese trainer to
the facility to conduct a two-
With the course curriculum Knowledge sharing. A visi ng Japanese instructor explains the working of week training program aimed
me culously designed by the mild-hybrid technology in a diesel engine. at impar ng knowledge on
Associa on for Overseas global best prac ces in
Technical Scholarship (AOTS) The mini assembly line offers students an overview of the work to be automo ve service and
Japan, in consulta on with carried out at a single worksta on in minimum 'takt' me. repair, as well as making
Maru Suzuki, the students students learn the Japanese
are required to strike a concepts of 'Ho-Ren-So’ (to
balance between theory and respect, communicate and
prac ce in order to become consult), kaizen and 5S.
well versed in their subjects
and also clear the common Safety First
evalua on conducted by the
state government for all ITIs. A clear and sharp focus at JIM
The ins tute sees students can be seen on occupa onal
ge ng trained in three shi s safety at the workplace, with
which are conducted between students taking a safety
8am and 9pm. briefing before they start their
shi each day, just like it
A walk down skilling lane would be done as a rou ne
ac vity at the shopfloor of any
This correspondent's recent global automo ve OEM or
visit to the ins tute was supplier, working in accordance
quite an eye-opener. You with OHSAS standards.
step into an extremely neat
and clean campus, which is The safety training includes
usually unexpected of an ITI, making students learn basic
considering how their image fire-figh ng skills as well as
has been tarnished at a wearing proper safety gear at
number of government-run all mes, like helmets, gloves,
facili es. The airy corridors suits and boots for different
give way to a number of opera ons on the shop floor.
classrooms and
laboratories, with students The welding laboratory is a
all ears to their teachers & prime example of the safety
prac cal instructors. precau ons being undertaken,
with students wearing
While all coaches are protec ve eyeglasses when
appointed as per the working with MIG welding
government guidelines of guns to protect their eyes. JIM
minimum experience criteria, scores high in terms of
an addi onal consul ng infrastructure and the training
coach is also deputed for equipment installed, with the
every trainer, who is generally welding lab boas ng two weld
a re red industry professional simulators, which Maru
and an expert in his or her Suzuki says are not even
respec ve field a er having installed in its main training
worked in the automo ve centre at its Gurgaon plant.
space for a considerable The ins tute has acquired a
amount of me. welding robot as well, and is in
the process of installing it over
The visit to JIM also coincided the next couple of months.

A quick round of the mechanic

34 F A D A Journal April 2019 | fada.in

Technology

diesel engine workshop Students get familiar with the layout industry to come & find a by 2026. This will happen
shows students receiving and working of a diesel engine and suitable match. through all its collabora ons
hands-on training by also learn the way to reconstruct it in the educa onal training
dismantling and repairing Maru Suzuki's CSR wing is space with 110 ITIs and 52
Maru Suzuki engines. The from scratch. now working towards Automo ve Skill
electrical department, on the including three more Enhancement Centres
other hand, also has three transmission systems by the industry-oriented courses — (ASECs), which it started
girls being a part of the Japanese instructor. machinist, tools and dies, building since 2014 with a
training program and working and jigs and fixtures — broader vision of skilling the
hard towards self-reliance and New industry-oriented which have been suggested country’s youth and enabling
ensuring a good future in the courses by the company's vendors them to earn a living and
auto industry. for recrui ng people from develop a career.
JIM's first convoca on was the ins tute at their
Assembly line on a student held in July 2018, with a total facili es. While these trades Meanwhile, other leading
shopfloor pass percentage of 99.70 will be introduced by August vehicle makers and suppliers
percent and close to 80 2019, the carmaker's next in India are also making
What is even more percent students scoring focus is to increase the earnest efforts to upgrade
impressive is the miniature above 60 percent. The first student intake in JIM to 1,000 the skills of their exis ng
assembly line, mimicking the year of placements also saw a by 2021. workforce even as they e up
actual one with door and total of 254 students with a number of ins tu ons
dashboard sub-assembly appearing before the The average course fee at JIM to source skilled & trained
lines and mul ple fi ng placement cell and all of them lies in the range of Rs. 8,500 personnel, who are industry-
sta ons, as typically seen securing jobs with 61 ge ng for each semester, with a ready.
inside a car factory. Fi ers absorbed by parent Suzuki number of Maru Suzuki
get trained to install the Motor Corp at its new Gujarat senior employees also This, in itself, is a big change
correct parts and the interior plant, 120 going to various Tier coming forward to make a from yesteryear where the
trims in the right manner, 1 vendors in the western philanthropic effort on their first few years of an out-of-
while prac cing to carry out region, and 59 ge ng placed own to sponsor students college, theory-laden recruit
the job within the s pulated at the dealership level. with weak financial typically go in learning the
amount of takt me on this backgrounds. ropes. Ins tutes like JIM are
mini assembly line. Seven students chose the need of the hour in India,
entrepreneurship, five The company says it is which is one of the fastest
Next in line is the automobile opted for higher studies, commi ed to provide growing automo ve markets
workshop, which is meant for and two were placed at a infrastructural improvement, in the world and will be
students in the mechanic diamond merchant in faculty training, exposure to needing skilled personnel in
motor vehicle course to get Gujarat, thus making JIM a manufacturing facili es, and millions to make the most of
hands-on learning on true centre for holis c skill train a large pool of students its growth poten al.
mul ple aspects of vehicle development, and an open
fault diagnosis and repair, as ground for students and the 254 students from the first JIM batch have been inducted into the industry.
well as auto body repair and
paint. Wheel alignment and
balancing, air-condi oning
repair, electrical and hybrid
system troubleshoo ng are
also some of the areas seeing
strong student interest as
more & more cars adopt these
futuris cmobilitytechnologies.

Students could also be seen
ge ng trained in the working
of strong hybrids, AMTs, CVTs
and conven onal automa c

This ar cle has been reproduced from AutoCar Professional Magazine.

fada.in | April 2019 F A D A Journal 35

Management

How To Enhance
Your Dealership’s Efficiency & Revenue

In A Strong Economy, A the key to success and with ideas to accomplish bay. Dealers who have
Focus On Efficiency Delivers cul va ng new revenue this, as well as the installed this equipment have
streams. equipment and supplies to been able to increase their
A strong economy with facilitate new revenue alignment business, save on
rising interest rates and Adding Revenue Streams streams. For instance, labor costs, and sell needed
falling unemployment is equipment such as Hunter
good news, but it also means Learning how to generate Engineering’s “Quick Check res while preven ng
that running a business is addi onal revenue with Drive” Alignment inspec on customers from having more
more expensive. While value-added services is a system features an array of 8 costly repairs down the road.
dealers are clearly seeing terrific way to buffer your cameras and 32 laser sensors Another example are tools
that vehicle inventory dealership from the impact that quickly and accurately which can perform simple,
carrying costs and workers’ of rising costs. An effec ve, alert a service technician if a but highly technical analyses
benefit costs are on the rise, full-service vendor partner vehicle is out of alignment as such as measuring re tread
the day-to-day demands of who looks out for your best soon as it enters the service depth to save me and
selling and servicing vehicles interest will provide you increase re sales revenue.
can make it challenging to
evaluate other costs of
doing business. To counteract
these and other rising
expenses and achieve money-
saving goals, dealers need to
do two things to improve their
bo om lines: Cul vate new
revenue streams and increase
efficiency — by cu ng waste
and enhancing produc vity. In
doing so, choosing the right
vendors to serve your needs is

36 F A D A Journal April 2019 | fada.in

Management

The system also has automa c prices — and stand behind Improving Produc vity you can collaborate with on
vehicle iden fica on as well them. regular audits to make sure
as automa c body photos, But increasing efficiency isn’t there aren’t any
elimina ng fraudulent and Research has shown that just about cu ng the fat, so opportuni es for savings
costly damage claims. having an array of vendor to speak. It also involves slipping through the cracks.
partners increases boos ng produc vity. Even if
Service departments can redundancy and this can be your employees are the best Flexible shipping to suit your
boost their sales during expensive — as much as in the business, the right needs is an addi onal way to
regularly scheduled $2,400 per extraneous vendor partnership can help improve produc vity. Not
maintenance services by supplier which can easily them work smarter, not only does this save you money
securing technology which help to save up to a quarter of harder. by improving your
alerts service technicians of a million dollars for a single procurement management, it
the deteriora on of the dealership per year. Working A dealership has to also reduces employees’
vehicle’s oils and lubricants. with a bevy of different undertake a diverse array of down me that results from
Offering cri cal fluid vendors also costs you money administra ve and wai ng for essen al supplies
exchange services using by making it difficult or managerial tasks such as to arrive.
forensic, scien fically- impossible to get a holis c procurement management
backed technology shows view of your spending and your repor ng. To the extent Conclusion
the customer that their expenses, which means you that you can “outsource”
dealer is proac ve when it could be overlooking those by partnering with a Although today’s challenging
comes to helping them opportuni esforsavings. full-service vendor, you will cost environment is likely to
extend the life of their vehicle. find that you can reduce the con nue for the foreseeable
Improvements to your workload and demands on future, savvy dealers who are
These are just a sample of procurement management your employees’ me. pro-ac ve in enhancing
tools which a valuable process also enhances efficiency, improving
vendor partner will bring to efficiency, by reducing the Another way to enhance produc vity, and increasing
your a en on to help your amount of overhead you may produc vity is to seek out a ancillary revenue can help
service department keep be spending on addi onal vendor who will be proac ve bolster the bo om line. To be
customers feeling taken care storage space. A vendor with a on your behalf when it most effec ve, this means
of while enhancing their focus on delivering you value, comes to finding the best working with a full-service
ancillary revenue. should be conduc ng regular prices on everything you vendor who has the know-
needs assessments to buy. A vendor that provides how and tools to help you
Curtailing Waste and maximize your cash flow — comparison shopping achieve these goals.
Redundancy you won’t find yourself with services will save you from
valuable opera ng income having to divert your own
While income-genera ng “locked up” in the form of staff’s manpower to do so.
efforts are a crucial part of warehoused supplies. You also need a supplier who
thriving when costs are
rising, they are only half the
equa on. The other key
component is cu ng waste
and redundancy to improve
your opera ng efficiencies.

A great way to start is to pare
back the number of vendors
with which you work. It’s
crucial when doing this to
seek out vendors partner
who will give you the best

fada.in | April 2019 F A D A Journal 37

Competition Law

Competition Law Updates

Fiat Chrysler Automobiles Na onal Company Law other car manufacturers, and on
(Fiat Chrysler) se les with Appellate Tribunal (NCLAT) in August 25, 2014, it found 14 car
an trust suit American auto October, Hyundai’s plea for a manufacturers to be viola ng
dealers complete stay on the CCI’s Order trade norms in the spare parts
was rejected. As a result of the and a er-services market, in
Fiat Chrysler has se led an NCLAT’s order, Hyundai was to India and imposed a total penalty
an trust lawsuit brought by deposit 10% of the penalty based of Rs. 2,545 crores on them. A
seven dealers of a leading auto on its total turnover. On appeal to Division Bench of the Delhi High
group in the United States of the Supreme Court, a two-judge Court has held Sec on 22(3),
America. The lawsuit was filed in bench stayed the Rs.420 crore which grants the chairperson
a District Court in Chicago in penalty on 17 November 2018. with a second vote during
2016 and accused Fiat Chrysler proceedings and pre-
of breach of contract and Separately, the Apex Court has amendment Sec on 53E to be
viola ons of federal an trust also stayed Compe on uncons tu onal. Further, the car
statutes and dealer-protec on Appellate Tribunal’s (COMPAT) makers companies have been
laws in Illinois, Florida, and other order that imposed penalty on 3 given six weeks' me to approach
states. other car companies – Toyota, the NCLAT over the ma er of
Ford and Nissan. The COMPAT by challenging their penal es.
According to the auto dealers, its order dated 09 December
Fiat Chrysler had solicited 2016 concurred with the European Commission (EC)
fraudulent sales reports from findings of the CCI and directed finds German automakers
certain dealers, and used the Ford, Toyota and Nissan to guilty of collusion in emissions
numbers generated from these remove all restric ons imposed technology
false sales to further subsidize through agreements on auto
be er selling vehicles for the parts suppliers so as to open up In 2015, the EC ini ated an
auto dealers’ compe tors. In the market for spare parts and inves ga on into the business
this regard, there had been remove all restric ons on supply ac vi es of BMW, Daimler and
nearly 85 reported false sales. by Original Equipment Suppliers Volkswagen following
Although the terms of the to authorized dealers. On appeal, allega ons of carteliza on in the
se lement remain confiden al, the Supreme Court stayed the market for emission control
but the United States opera on of the COMPAT’s order technology. Following this
Department of Jus ce noted that on 8 February 2017. Hyundai’s preliminary inquiry, the EC has
the se lement was an amicable appeal and those of the other concluded that the German auto
one. three car OEMs have been listed makers conducted ‘circle of five’
next before the Apex Court for mee ngs to rig compe on in
Supreme Court stays a Rs. 420 hearing in the last week of April emissions technology.
crore penalty on Hyundai and 2019.
stays the COMPAT’s direc ons It has been held that the
to major car manufacturers to Delhi High Court permits auto mee ngs allowed them to limit
open up supply of spare parts makers to approach the NCLAT the introduc on of “AdBlue” or
urea to diesel engine exhaust
In July 2015, the CCI imposed a An informa on was filed in gases, reducing its effec veness
penalty of Rs. 420.26 crore on January 2011 against Honda, as a way to produce cleaner
Hyundai Motors India Limited Volkswagen and FIAT before the emissions. The findings form the
(Hyundai) for viola ng Sec ons CCI alleging that certain car basis of a “statement of
3(4) and 4 of the Compe on manufacturers were engaging in objec ons” to which the auto
Act for allegedly restric ng the an -compe ve/abusive makers will have a chance to
supply of genuine spare parts prac ces in the spare parts respond before the EC decides
and diagnos c tools to market.The CCI enlarged the whether to pursue a case against
individual service scope of its inves ga on to them or not.
providers.Upon approaching the

38 F A D A Journal April 2019 | fada.in

Surveys & Studies

Upper Executive and Premium Motorcycle Owners
Become More Sensitive to Fuel Economy, J D Power Finds

Honda Receives Three Segment-Level Awards; Yamaha Receives Two; TVS Receives One

An increase in petrol prices wheeler owners in India, a heightened sensi vity to owners: While fuel
has resulted in owners of motorcycle owners in the fuel mileage amongst owners economy is the lowest-
upper execu ve and upper execu ve and in these segments, resul ng in performing factor across
premium motorcycles premium segments have, in the change in drivers of all two-wheeler
placing more importance on the past, typically a ached product sa sfac on.” segments, sa sfac on
fuel economy when rela vely lower importance scores among owners in
determining their product to it,” said Rajat Agarwal, Key Findings of the the two scooter
sa sfac on, according to Two-Wheeler Industry study segments (execu ve &
the J D Power 2019 India E x p e r t at J D Powe r. upper execu ve) are the
Two-Wheeler Automo ve “However, with increasing • Fuel economy under- lowest in the two-wheeler
Performance, Execu on and expenditures on fuel, there is performs especially segments.
Layout (2WAPEAL) Study amongst scooter
released on May 7.

Amongst the factors that the
study measures, upper
execu ve motorcycle owners
singled out fuel economy as
the factor with the highest
rela ve importance. The
emphasis on fuel economy
cited by this group of owners
is highest amongst all two-
wheeler segments.
Addi onally, the rela ve
importance assigned to this
factor by premium
motorcycle owners has
increased to a level similar to
those for other two-wheeler
segments.

The study also finds that the
greater emphasis on fuel
economy is largely due to an
increase in fuel prices. While
owners of upper execu ve
and premium motorcycles
this year obtain similar fuel
mileage as the previous
year, they report an 18%
increase in monthly
expenditure on fuel.

“While fuel economy has
always been an important
driver of sa sfac on for two-

fada.in | April 2019 F A D A Journal 39

Surveys & Studies

• Ini al quality has a • S t ro n g c o r re l a o n • Honda Ac va I ranks T h e 2 0 1 9 I n d i a T w o -

strong influence: between APEAL score highest in the execu ve W h e e l e r A u t o m o v e

Sa sfac on amongst and loyalty and scooter segment with a Performance, Execu on

owners who have not advocacy inten ons: score of 806 index and Layout (2WAPEAL)

experienced any ini al Among highly sa sfied points. Study is based on
quality problems with
their two-wheeler owners (APEAL score of • Honda Grazia ranks evalua ons from 8,826
during ownership is 36 872 or higher), 75% say highest in the upper owners who purchased a
points higher than they “definitely will” execu ve scooter new two-wheeler vehicle
amongst those who have recommend their segment with 778 index between March 2018 and
experienced a problem purchased model and points. October 2018. The study
56% “definitely will” includes 85 two-wheeler

(786 vs. 750, repurchase the same • T V S V i c t o r r a n k s models from nine makes.

respec vely, on a 1,000- make. In contrast, h i g h e s t i n t h e The study was fielded from

point scale). among highly economy motorcycle S e p t e m b e r 2 0 1 8 t o

• Explana on of features dissa sfied owners s e g m e n t w i t h 7 8 9 December 2018 in 45 ci es

and benefits improve (APEAL score of 695 or index points. across India.

Automo ve lower), just 39% say they • Honda CB 125 Shine SP The study is a key industry

Performance, Execu on “definitely will” ranks highest in the benchmark that measures

and Layout (APEAL) recommend their vehicle execu ve motorcycle how gra fying a new two-

score: Overall model and 25% segment with 779 index wheeler is to own and ride

sa sfac on amongst “definitely will” • points. during the first two to six
owners who received an repurchase the same months of ownership. The
explana on about brand. Yamaha FZ/ FZS ranks study examines 34
vehicle features and highest in the upper a ributes across six
benefits during the Study Rankings execu ve motorcycle performance categories (in

delivery process (88%) Award recipient segments segment with 820 index a l p h a b e c a l o r d e r ) :

a v e r a g e s 4 1 p o i n t s include scooters (execu ve points. control switches/ locks;

higher than amongst and upper execu ve) and • Yamaha YZF R15 ranks engine and transmission;
t h o s e w h o d i d n o t motorcycles (economy,
highest in the premium fuel economy; looks and
receive the same (773 vs execu ve, upper execu ve
motorcycle segment styling; ride and handling;
732, respec vely).
and premium). with 812 index points. and seats.

Attention: Members

Engagement of GST Consultants

GST consultants – Ms Puloma Dalal and Dr Sanjiv Agarwal, based in Mumbai and Jaipur respec vely, have been
engaged by F A D A on retainership to help members deal with the complexi es of GST law and procedures. They
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 them for their 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]).

40 F A D A Journal April 2019 | fada.in



Consumer Case Study

National Consumer Disputes Redressal Commission,
New Delhi

MR PREM NARAIN, Consumer Protec on Act, 1986 - Sec on 21 (b) - Automobile - Tractor - defec ve purchased
Presiding Member on loan - developed defect during the warranty period - parked it with the appellant, but not
repaired ll date - hence, complaint before District Forum - District Forum allowed the
Mahindra & Mahindra complaint and directed all the Opposite Par es (manufacturer and dealer) to change the
Ltd - Tractor Division – tractor with new tractor and pay Rs. 25,000 for the mental agony and interest @ 12% since
Petitioner 14.06.2000 on the price of tractor in the form of compensa on. However, on appeals of both
the Opposite Par es, State Commission modified the order and directed the appellant
Versus Mahindra & Mahindra Company to deliver to tractor of same make within 30 days from order
to Complainants and if tractor is not available then pay the price. Certain other reliefs were
Nandlal & Ors – also granted. Hence, revision by the Pe oner - The tractor travelled 1800 hours of opera on
Respondents - Hence, the defence of regular wear and tear and the minority of defects taken - though
expert opinion was there, it was not of “appropriate laboratory” as required under sec on 13
Revision Petition No. 3327 (1) (c) of the CPA - all the grievances were a ended - further defence is that manufacturing
of 2013 defect is not proved.

Decided on 11/03/2019 Result: Revision Pe on is allowed with a modifica on.

(Against the Order dated IMPORTANT POINT: (1) The burden of proving that there is not manufacturing defect, in the
31/05/2013 in Appeal No. event of expert report the complainant, lies on the manufacturer and dealer, as they have
26/2008 & 188/2008 of the team of experts. (2) The State Commission cannot modify the order of the District Forum, in
State Commission appeal by the Opposite Par es, when there is no appeal by the Complainant.
Rajasthan)

This Revision Pe on has was covered under the to change the tractor of
been filed by the warranty for 24 months or Complainants with new
Pe oner Mahindra & 2000 hours which occurred tractor and pay Rs. 25,000 for
Mahindra Ltd against the e a r l i e r. Tra c to r wa s the mental agony and interest
order dated 31.05.2013 of the purchased with a loan from @ 12% since 14.06.2000 on
State Consumer Disputes the bank. Tractor developed the price of tractor in the form
Redressal Commission, the defect during the of compensa on.
Rajasthan, (in short 'the State warranty period and
Commission'), passed in Respondents parked the 3. Aggrieved with the order
Appeal Nos.26/2008 & tractor with Appellant on of the District Forum, the
188/2008. 16.06.2000 which has not Opposite Party
been repaired ll day by the No.1/Pe oner herein and
2. Brief facts of the case as Appellants. the Opposite Party
stated in the order of the State No.2/Respondent No.3
Commission are that Aggrieved, the Respondents herein preferred appeals
Respondents Nos.1 and 2 No.1 and 2/ Complainants being Appeal Nos.26/2008 &
/Complainants purchased a filed a consumer complaint 188/2008 before the State
Mahindra Tractor from the before the Consumer Dispute Commission. The State
Respondents No.3 and 4 Redressal Forum, Karauli, (in Commission while dismissing
manufactured by Appellants short 'the District Forum'). both the appeals amended
on 28.08.1998 and same was The District Forum allowed the order of the District Forum
registered with concerned the complaint vide its order as follows:-
authority vide registra on dated 11.10.2007 and
No.RJ 34 R 224. The tractor directed the Opposite Par es “It is therefore, the both
appeals of Appellants are

42 F A D A Journal April 2019 | fada.in

Consumer Case Study

dismissed and order of 20.08.1998 from the a end to the alleged in the tractor in ques on by
District Forum is amended Respondent No.3 dealer and grievances reported by the way of an expert report from a
and Appellants are directed the said tractor ll 07.06.2000 Respondent No.1 & 2 under recognized laboratory nor the
that:- had covered around 1800 the warranty as and when Pe oner has commi ed any
hours of opera on. Had there reported. Further, as per the deficiency of service within
As defec ve tractor is in the been any manufacturing terms & condi ons the meaning of CPA, 1986.
possession of Appellants and defects, the tractor would not men oned in the operator
in such condi on it is just to have covered more than 1800 service book provided to the 9. I n s u p p o r t o f h i s
grant the relief to hours of opera on. The said Respondent No.1 & 2, the conten on, the learned
Complainants that Appellant fact proves that the tractor Pe oner s pulated about counsel relied upon the
Mahendra & Mahendra was in absolute roadworthy obliga on under the warranty judgment of this Commission
Company delivers tractor of condi on and that the jobs would be limited to repair or in Dr K Kumar Advisor
same make within 30 days carried out on the tractor, replacement of such parts, (Engineering), Maru Udyog
from order to Complainants were minor and running which appeared to be Ltd Vs. Dr A S Narayana Rao &
and if tractor is not available repairs, which were required defec ve to the manufacturer Anr. [1 (2010) CPJ 19 (NC)],
then pay the price. to be carried out due to or the authorized dealers wherein this Commission has
regular wear and tear of the within warranty period. accepted the necessity of
Appellant shall pay the said tractor. Further the Pe oner would expert evidence to prove the
remaining instalments of loan not be responsible for submissions of manufacturing
of tractor and interest on 6. Learned counsel for the incurring of any costs on d efe c t s i n t h e t ra c to r.
behalf of Complainants to Pe oner stated that the consumable items and normal Learned counsel further
Bank of Baroda branch at District Forum as well as State maintenance services of the relied on the decision of the
Karauli. Commission failed to take note tractor. Therefore, the Maru Udyog Ltd Vs. Susheel
of the fact that the expert prayers as made by the Kumar Gabgotra & Anr. case
Appellant shall pay Rs. 25,000 opinion given by Nandlal, Respondent No.1 & 2 for (JT 2006 (4) SC 113), wherein
(Rupees Twenty Five Khemraj, Jagdish, Laxman replacement of the tractor the following has been held:-
Thousands only) to Singh Mistri & Suleiman Mistri was untenable and
Complainants for the mental is in clear contraven on of the unsustainable. Learned "J&K Consumers Protec on
agony and Rs. 50,000 (Rupees appropriate laboratory counsel stated that in the case Act, 1988 - car -defec ve -
Fi y Thousands only) for the defined under Sec. 2(1) (a) of of Maru Udyog Ltd Vs. order of replacement of car
unfair trade prac ce adapted the CPA, 1986. It is submi ed Susheel Kumar Gabgotra & challenged - as per warranty
by the Appellants and that Nandlal, Khemraj, Jagdish, Anr. case (JT 2006 (4) SC 113), condi ons there was
impugned judgment is Laxman Singh Mistri & the Hon'ble SC held that, "the admission to replace defec ve
amended to this extent." Suleiman Mistri are neither an manufacturer cannot be part and not the car- hence
appropriate body under ordered to replace the car or High Court was not jus fied in
4. Against the order of the Sec on 13 (1) (c) of the refund its price merely ordering replacement of car-
State Commission, the Consumer Protec on Act to because some defect appears Appellant directed to replace
present Revision Pe on has give the expert report on which can be rec fied or defec ve part- Respondent
been filed by Opposite Party alleged manufacturing defects defec ve part can be replaced en tled to Rs. 50,000 as cost -
No.1/Pe oner. of the tractor in ques on nor under warranty." In view appeal allowed."
having any infrastructure to thereof, the order of
5. H e a r d t h e l e a r n e d carry out such ac vi es. The replacement of a new tractor 10. Learned counsel for the
counsel for the Pe oner as Complainant/Respondent along with the compensa on is Pe oner further stated that
well as Mr Nandlal in person No.1 was duty bound to submit contrary to law and is in fact no manufacturing
for Complainants/ the expert report from an untenable. defect has been men oned
Respondents No.1 & 2. None "appropriate laboratory", in either in the complaint or in
appeared for Respondent support of alleged manufacturing 8. Learned counsel further the order of the District Forum
Nos.3 & 4 and therefore, they defectsinthetractor. stated that the State or in the order of the State
were proceeded ex-parte vide Commission erred in Commission. Even the
order dated 03.05.2016 of this 7. L e a r n e d c o u n s e l dismissing the appeal of the affidavits filed by so called
Commission. The learned submi ed that the District Pe oner and ought to have mechanics also do not
counsel for the Pe oner Forum & the State allowed the appeal with costs, men on any manufacturing
stated that the State Commission disregarded the since neither there was any defects. Thus, without
Commission completely fact that the Pe oner has manufacturing defect proved iden fying any manufacturing
ignored the fact that the been prompt and swi to defect a decision has been
Respondent No.1 had
purchased the tractor on

fada.in | April 2019 F A D A Journal 43

Consumer Case Study

taken by both the fora below the material on record. The not produced any opinion in deficiency in the engine
that there was manufacturing State Commission in its order this regard nor made any appears on 12/10/99 and
defect in the vehicle. has observed the following: a empt and not filed the therefore, the Complainants
expert report even order of visited to Respondent No.2
11. It was further men oned "The main argument of the commission. Complainants with tractor and he had
by the learned counsel for the Appellant is that have clearly deposed in the corrected the tractor in his
Pe oner that tractor was Complainants have not affidavit that tractor has workshop and issued the bill
purchased on 20.08.1998 and proved by opinion of expert manufacturing defect and of Rs.1457.98 and the
the same was brought for that the tractor has the they have parked with the Complainants have said that
repairs for the first me on manufacturing defect. We Respondent at the warranty the tractor is under the
12.10.1999. On 16.01.2000 are not concurring the period. The Complainants guarantee period and
there was leakage in water argument of Appellants. The have filed the affidavit of therefore, they will not pay
body, which was rec fied on tractor of Complainants are Jagdish Prasad Mali who was the bill maintenance and then
the same day. The tractor has parked with Appellants since salesman with Respondent Respondent No.2 said that he
been standing with the year of 2000 ll today and and Khemraj Mechanic and will return the bill a er the
workshop since 14.06.2000. Appellants are manufacturing both deposed that tractor has passing of bill from company
company and dealer and they manufacturing defect. and thereon the
12. On the other hand on have filed an applica on Complainants have also filed Complainants have paid the
behalf of Respondent Nos.1 & before the Commission 20- the report Laxman Singh who bill of Rs. 1,457.98. The
2, the Respondent No.1 01-2008 for examina on by is also a tractor mechanic and, Complainants return with
Nandlal was present in person experienced mechanic and also said about manufacturing tractor but tractor cannot
and argued that the tractor did Commission has passed the defect. Suleman Mechanic properly operate even 4 days
not start and water came out order on the applica on of has also told manufacturing and therefore, Complainants
from all three parts and the Appellant vide order dated defect in the tractor. Nandlal, further made visit to
mechanics from the company 11-07-2011 that report of Khemraj, Jagdish & Laxman Respondent No.2 along with
workshop said that there was expert mechanic is necessary Singh and Suleman are tractor.
manufacturing defect in the in the present case so that it working with tractor and all
tractor. Clearly, there was could be ascertained which these persons have shown the The Respondent No.2 further
manufacturing defect in part of tractor is defec ve and manufacturing defect in the
tractor and the same was that part could be changed or tractor. change the part and issued
accepted by the mechanics of whole tractor shall be
the OPs and they have filed changed with new one. The Appellants have not the bill of Rs. 1,457.98 and
affidavits in support of their Appellants/Respondents are produced any evidence
asser ons that the tractor was directed to give no ce to before the District Forum received the amount.
having manufacturing defects. Complainants and get the which rebut these evidences.
It is unimaginable that checking of tractor in their The Complainants have 6. That the tractor could not
mechanics of OPs would presence and file the report proved their case that tractor operate properly even a er
accept and opine that there thereof. has the manufacturing defect. second correc on because
was manufacturing defect in While the Appellants albeit the engine of tractor was
the tractor unless they were Appellants have sought the having the team of expert and defec ve. The Complainants
100% sure that there were me since 18-08-2011 to 20- even a er the order of visited Respondent No.3 with
manufacturing defects in the Commission, could not tractor that he told that
tractor. As they were repor ng 09-2012 but not produced the examine the tractor in the engine of tractor is defec ve
against the wishes of the report of any expert. presenceofComplainants." and therefore he will change
opposite par es, which was Appellants have filed the the engine of tractor and he
giving them employment, report with those facts who 14. M o r e o v e r , t h e said to operate tractor ll it is
thus, no further proof is have filed the affidavit in the Complainant, has men oned possible but tractor does not
required for proving the support of complaint before the following in the operate as it was consuming
manufacturing defect in the Learned Forum. Appellants complaint:- huge oil and therefore the
tractor. who are manufacturing Complainants made 20 visit to
company and dealer, have the "5. That tractors operated Respondent No.2 & 3 and they
13. I have given a though ul team of expert & they are some months a er purchase told that they have wri en to
considera on to the competent to get examina on in the good condi on but company and a wait the reply.
arguments advanced by both at their own as what is the therea er deficiency appears The engine is defec ve hence
the par es & have examined status of tractor but they have in the engine of tractor and it will not be corrected and
therefore engine was not
corrected. Thus, the

44 F A D A Journal April 2019 | fada.in

Consumer Case Study

Complainants made the of the report of the expert is opposite par es whereas the jurisdic on by ac ng illegally
rounds of Respondents for concerned, the order of the repayment of loan is governed or with material irregularity.
many months but State Commission quoted by loan agreement. It means In the instant case, the
Respondents have not above clearly states that the that purchaser is liable to Na onal Commission has
corrected the tractor and they opportunity was granted to repay the loan to the bank and certainly exceeded its
were makingexcuse. the Pe oner for ge ng the therefore, the liability to jurisdic on by se ng aside
tractor checked by an expert repay the loan cannot be the concurrent finding of fact
7. That the Complainants and to submit the report. fastened on the opposite recorded in the order passed
made further visit on 16-06- However, the Pe oner did par es as in a complaint, by the State Commission
2000 with tractor to not submit the report even deficiency in service against which is based upon valid and
Respondent No.3. Jagdish a er being given many the opposite par es can only cogent reasons."
Mali salesman and Khemraj opportuni es for the same. be examined in respect of the
Mistry met to the shop of Hence, the Pe oner cannot contract entered between the 19. As the manufacturing
Respondent No.3. The say now that the requirement Complainant and the defect in the tractor has been
Complainants said for the of the expert report is not opposite par es. In this view accepted by the fora below
correc on of tractor then met. Moreover, the fora of the ma er the order of the and the scope under the
aforesaid both persons said below have accepted State Commission in respect Revision Pe on is quite
the parked the tractor and we affidavits of mechanics of the of direc on given to the limited and the facts cannot
will change the engine and opposite par es and have opposite par es for payment be reassessed by this
hence the Complainants treated them as expert report. of remaining instalments of Commission at the level of the
handed over the tractor to When the Pe oner has not the loan of tractor to the Bank Revision Pe on and
both persons and return to taken any interest in ge ng of Baroda is not sustainable par cularly in the light of the
our residence. They have said the tractor checked by an and is liable to be set aside. observa ons made by the
to take the tractor a er 4-5 expert and to submit the State Commission with regard
days. Khemraj mistry carried report, the State Commission 18. As both the fora below to the expert report, I do not
the tractor same day at has in the alterna ve have given concurrent find any error in the order of
Gangapur City at Respondent accepted reports given by the finding, that the tractor had the State Commission except
No.2 but tractor did not return mechanics and I do not see manufacturing defect and the that the order rela ng to
in 4-5 days then Complainants any irregularity in this regard. same is also proved by the direc on given to the
visited the Respondent No.3 affidavits of the mechanics of opposite par es for payment
at Gangapur city but 17. From the order of the State the OPs, there seems to be no of remaining instalments of
Respondent No.2 has not Commission, it is seen that on occasion to interfere in the loan of tractor to the Bank of
repaired the tractor nor one hand the appeals filed by concurrent finding given by Baroda along with interest
changed its engine and even the opposite par es have been the fora below. The scope payable by the Complainant.
Respondent No.2 did not dismissed, but on the other under the Revision Pe on is Thus, the Revision Pe on is
return the tractor to them." hand, the order of the District quite limited when there are partly accepted and the order
Forum has been modified concurrent finding of facts by of the State Commission
15. First of all, from the againsttheoppositepar es. the fora below as held by dated 31.05.2013 is modified
above por on of the Hon'ble SC in Lourdes Society to the extent that the order in
complaint, it seems that It is true that the appellate Snehanjali Girls Hostel and respect of direc on regarding
mechanics of the court has the powers of the Ors Vs. H&R Johnson (India) payment of remaining
OPs/Respondent No.3 & 4 trial court and the appellate Ltd & others, SC cases 286, instalments of loan of tractor
have told the Complainant court can modify the order of wherein, the following has along with interest payable by
that the engine of the tractor the trial court, but in my view, been held:- the Complainant to the Bank
was defec ve and they modifica on in the order of of Baroda is set aside and the
accepted the tractor for the District Forum was not "23. The Na onal remaining order of the State
changing the engine, required as no appeal was Commission has to exercise Commission is upheld. The
however, the same was not preferred by the Complainant the jurisdic on vested in it Pe oner is also directed to
changed. Thus, the asser on and he was sa sfied with the only if the State Commission pay cost of li ga on of
of the learned counsel for the order of the District Forum. or the District Forum has Rs.10,000 (Rupees ten
Pe oner is not correct that Otherwise also, the purchase either failed to exercise their thousand only) to the
no defect was men oned in of tractor is a contract jurisdic on or exercised when Respondents / Complainants
the complaint. between purchaser/ the same was not vested in for this Revision Pe on.
Complainant and the them or exceeded their
16. So far as the requirement

fada.in | April 2019 F A D A Journal 45

New Unveils

Hero MotoCorp Unveils Three Next-Gen Motorcycles

Se ng a significant milestone
on its strategic journey into
premium biking, Hero
MotoCorp Ltd, the world’s
largest manufacturer of two-
wheelers, launched three new
exci ng motorcycles – XPulse
200, XPulse 200T and Xtreme
200S for Global markets on
May 1.

The diverse new X range of
motorcycles from Hero
MotoCorp showcases the
company’s strong focus on
providing the customers with
premium and modern design
with superior technology and
differen ated appeal.

The highly an cipated XPulse L-R: Chief Technology Officer Dr Markus Braunsperger, Head-Sales & A er-Sales Sanjay Bhan and Head-
200, India’s first 200cc Global Product Planning Malo Le Masson, at the launch of XPulse 200, Xtreme 200S and XPulse 200T
adventure motorcycle, is
a rac vely priced at Rs. will be available for retail sale “Over the next 12 months, the rigidity and responsive
97,000 (Ex-Showroom, Delhi) at Hero MotoCorp dealerships domes c two-wheeler handling on any terrain. The
and the Fuel Injec on (FI) across the country in a few industry in India will go Aluminum skid plate, 21"
variant of the XPulse 200 is weeks. through a tectonic shi with Front wheel and 18" Rear
priced at Rs. 105,000 (Ex- the implementa on of new wheel with dual purpose
Showroom, Delhi). Dr Pawan Munjal, Chairman, safety and emission norms. tyres, 220 mm ground
Hero MotoCorp, said, “At a We are completely geared up clearance, upswept exhaust,
The XPulse 200T, India’s only for this transi on and to lead Mono shock with 10 Step
200cc modern Tourer with me when consumer trends the industry into the next adjustable Gas Charged rear
retro flavor is available at Rs. all over the globe keep growth phase in the world’s Suspension (170 mm Wheel
94,000 (Ex-Showroom, Delhi). evolving with frequent largest two-wheeler market Travel) and Telescopic Front
regularity, it is per nent for as well as in our global suspension (190 mm Stroke)
Further building on the ‘Fear companies to stay ahead of markets”, he added. provides strength to take on
Nothing’ a tude of the that change by inven ng new any terrain. The upright riding
Xtreme range of motorcycles, technologies and constantly The XPulse 200 stance and accessible seat
the new full faired Xtreme engaging in innova on. With height ensures comfort even
200S brings in more sporty our customer base spread India’s first 200cc adventure in long journeys.
character & introduces various across three con nents – motorcycle – a dynamic, on-
new elements to the 200cc Asia, Africa and South and road-off-road bike - comes The XPulse comes loaded with
motorcycle segment to increase Central America – we at Hero with two variants of 200cc next-gen smart technology
the aspira onal value for the MotoCorp are now riding engine - CV Carburetor & Fuel features, such as, firs n-class
customers. The Xtreme 200S is into the next phase of our Injec on - delivering 18.4 PS ‘ Turn-by-Turn Naviga on’,
a rac vely priced at Rs 98,500 bold ‘premium’ journey with Power and 17.1 Nm Torque for LCD instrument cluster with
(Ex-Showroom, Delhi). a range of new, technologically a real-world performance. Bluetooth connec vity, Gear
advanced and aesthe cally Indicator, Tripmeter & service
The Company will soon appealing motorcycles. The High Tensile Steel Frame reminder.
commence customer offers superior strength,
bookings of new X range of
motorcycles, and the vehicles

46 F A D A Journal April 2019 | fada.in

Xpulse 200 comes with full New Unveils
LED headlamps and tail lights,
under-seat USB charger, XPulse 200T also offers
protec ve windshields and comfortable riding posture
luggage plate with bungee and low seat height of 795
hooks. Single channel ABS mm for easy maneuverability.
offers added control and
safety in all condi ons. XPulse 200T comes in four
exci ng colours, including Candy
XPulse 200 FI variant is Blazing Red, Black, Ma e Shield
available in three colours, GoldandMa eAxisGrey.
including Ma e Green, Pearl
Fadeless White and Ma e Xtreme 200S
Axis Grey, while the
Carburetor variant comes in Targeted at today’s smart
two colours – Sports Red and genera on that is looking
Black. for both - character and
comfort - in their daily city
XPulse 200T ride, the Xtreme 200S comes
with an all new aerodynamic
Adding more zing to the fairing for a sporty stance and
XPulse range, is the XPulse be er wind protec on on
200T, India’s first 200cc Tourer highways.
motorcycle that presents
modern technology in retro In addi on, a compact
styling. exhaust adds to the sleek
appeal. The motorcycle
Build to inspire touring, the brings Full LED Headlamp
XPulse 200T is targeted at and tail light, Bluetooth
youngsters who are seeking connec vity, Turn-by-Turn
the right amalgama on of Naviga on, chiselled Rear
modern-retro composi on Cowl design, an -slip seats
and ease of riding. and full Digital LCD cluster
that includes Gear indicator,
XPulse 200T is powered by a Tripmeter & service reminder.
200cc CV Carburetor Engine
that delivers 18.4 PS Power Xtreme 200S is powered by
and 17.1 Nm Torque. The a 200cc air-cooled engine
motorcycle offers a host of that delivers 18.4 PS Power
safety and convenience and 17.1 Nm Torque. The
features such as single motorcycle comes with
channel ABS, turn-by-turn perfect riding ergonomics to
naviga on, LED head lamp deliver an excep onal
and tail lamp, digital performance to the rider.
speedometer with
Bluetooth connec vity, Xtreme 200S addi onally
large pillion grip with e comes with 7 step
points and luggage plate adjustable mono shock
with rubber pads. suspension that offers
superior ride handling, 276
Adding retro-appeal to the mm Front Disc with single
design language is the round channel ABS and 220 mm Rear
LED headlamp, retro styled disc Brakes system.
fuel tank, wide handlebar,
Adding to the sporty appeal
nted windscreen and of the motorcycle are the
contemporary ribbed seat. exci ng colours - Sports
Red, Mapple Brown and
Panther Black.

fada.in | April 2019 F A D A Journal 47

Upgrades

Maruti Suzuki Introduces New Alto

Maru Suzuki India Ltd sales of over 3.7 million since Ergonomically designed front Sensor, Driver Airbag, Speed
(MSIL) introduced on April launch in 2000, Alto has been and rear bo le holders give it Alert System and Seat Belt
23, the new Alto, which has a symbol of pride for Indian an air of prac cality. Reminder for both driver and
been India’s best-selling car car users. The new Alto is co-driver. New Alto also
for 15 consecu ve years. India’s first BSVI compliant PRIDE OF TECHNOLOGY: complies with upcoming crash
Keeping years of trust and entry segment car with a New Alto comes with a new & pedestrian safety regula on.
faith in mind, Maru Suzuki powerful engine and high infotainment system called
drives in the new Alto with fuel-efficiency of 22.05 km/l.” Smart Play Dock. Customers BS-VI ENGINE: MSIL has
enhanced safety features and can enjoy music on the consistently introduced
cap va ng design. The new The customers of new Alto Smart Play Dock with technology upgrades in the
Alto now comes with BSVI will witness a change in Bluetooth. The Smart Play Alto for mee ng customer
compliant engine, nearly a price predominantly due to Dock in the new Alto aspira ons. BS-VI compliant
year before the regula on factors such as addi onal transforms customer’s phone engine will mean a substan al
being mandated. safety features, new into a touch interface to access reduc on, (nearly 25%) of
technology and design and calls, music, naviga on & more. Nitrogen Oxides (NOx), in
Powered by 796 cc of engine compliance to BSVI Customer can also experience vehicular emission. To achieve
capacity which producing regula on. With these the convenience of keyless this stringent emission
35.3kW of Power and 69Nm changes, the new Alto entry. regula on requirement, MSIL
of torque, the new Alto is becomes the first entry level has upgraded engine
priced between Rs. 2,93,689 segment car to be compliant NEW SAFETY FEATURES: hardware & so ware with
& Rs. 3,71,70 (Ex-Showroom, with the contemporary safety New Alto now comes with technological advancement
Delhi) and is available in 6 & environment regula ons. An -lock Braking System of exhaust system. The
colours viz. Uptown Red, (ABS) and Electronic Brake stringent emission
Superior White, Silky Silver, NEW LOOK OF PRIDE: The Force Distribu on System requirement is ensured with
Granite Grey, Mojito Green elegant new grille and sharp (EBD). ABS will help to avoid extensive&rigorousfieldtests in
and Cerulian Blue. headlamps bring a fresh skidding by electronically actualIndiandrivingcondi ons.
appeal to the new Alto, while controlling braking pressure.
R S Kalsi, Senior Execu ve the newly designed bumper It will also help to maintain Mee ng the End of Life
Director, Mktg & Sales, MSIL, and side fender accentuate the steering control when braking Vehicles (ELV) obliga ons,
said ,“At Maru Suzuki, we looks. A look inside the car on slippery surfaces or when the new Alto is over 95%
are commi ed to bring showcases stylish dual tone braking hard. The ABS works recoverable & 85% recyclable.
innova ons in India’s best- interiors and seats. A new automa cally, whenever it
selling car brand Alto, which dashboard design flows senses that the wheels are The brand Alto has built its
now has a stylish makeover effortlessly to the new AC locking up. Other standard legacy on pride and truly
with addi onal safety ducts, right to the stylish yet safety features in the new Alto lives up to its philosophy of
features. With cumula ve func onal speedometers. include Reverse Parking “Chalte rahein shaan se –
Drive with Pride.”

48 F A D A Journal April 2019 | fada.in

Upgrades

ŠKODA OCTAVIA Corporate Edition Launched

ŠKODA AUTO India introduces PERFORMANCE airbags. In addi on, the for seamless connec vity and
the OCTAVIA Corporate Edi on Corporate Edi on includes a an undistracted drive. The
at an a rac ve introductory The OCTAVIA Corporate wide array of features, such as Two-Zone Climatronic air
Ex-Showroom price of Rs. Edi on comes with such An -lock Braking System condi oning system, with
15.49 lakh. powerful yet refined engine (ABS), Electronic Break-force clean air func on, is fi ed
op ons that are nothing short Distribu on (EBD), Hydraulic with a humidity sensor that
The Corporate Edi on comes of modern marvels. The 1.4 Brake Assistant (HBA), An reduces the windscreen
equipped with the 1.4 TSI (MT) TSI petrol engine, which Slip Regula on (ASR), Motor mis ng. With a capacity of
petrol engine and the 2.0 TDI produces an impressive Speed Regula on (MSR), 590 litres, stretched to 1,580
(MT) diesel engine from the power output of 150 PS (110 Electronic Differen al Lock litres with the rear seat
OCTAVIA model range and is kW), and the torque output of (EDL), Electronic Stability backrests folded down and
now available across all 250 Nm while delivering fuel- Control (ESC), and Mul - capable of a 60:40 split, the
authorized ŠKODA dealership efficiency of 16.7 kmpl. It Collision Braking (MKB). OCTAVIA Corporate Edi on is
facili es in the country. achieves 0 to 100 km/hr in 8.1 at the top of its class in space.
seconds and reaches a top ‘SIMPLY CLEVER’ SOLUTIONS
DESIGN speed of 219 km/hr. The ŠKODA ‘SHIELD PLUS’
turbo-charged 2.0 TDI offers The ŠKODA OCTAVIA
The OCTAVIA Corporate 143 PS (105 kW) power and Corporate Edi on hosts a ŠKODA AUTO India recently
Edi on demonstrates a comes with a six-speed plethora of the most introduced the ‘Shield Plus’: a
powerful and masculine manual transmission, as technically advanced and segment first ini a ve to
character. The vehicle gets a standard. The diesel engine intelligent connec vity ensure six years of hassle-free
chiselled hood, massive and op on achieves a maximum features that add a prac cal ownership experience. It
elegant front bu erfly grille torque of 320 Nm, 0 to 100 twist to elegance. The state- incorporates the first year of
with chrome surround, and km/hr in 8.4 seconds, a top of-the-art 16.51 cm comprehensive motor
dis nc ve Quadra headlamps speed of 218 km/hr and an touchscreen central insurance & three subsequent
with LED DRLs. The side profile average of 21 kmpl. infotainment system, is years of third-party coverage,
of the Corporate Edi on equipped with SmartLink 24 x 7 road side assistance for
lengthens the vehicle visually SAFETY & SMART ASSISTANCE technology (ŠKODA the fi h and the sixth year, and
and emphasizes the coupé-like Connec vity bundles an extended warranty for an
silhoue e – an effect which is The standard safety suppor ng MirrorLink, Apple addi onal period of the fi h
intensified even further by the equipment includes four CarPlay, and Android Auto) and sixth year or 1,50,000 kms
tapered rear window. The airbags: dual front airbags and that mirrors the smartphone (whichever is earlier).
horizontal and sharply cut an addi onal set of front side
tornado lines and the R (16)
Velorum alloy wheels,
accentuate the dynamic
appearance further.

The subtle contours on the
rear and the C shaped
illumina on, typical of the
ŠKODA model range, makes
the vehicle confidently stand
out. The cool brushed décor
on the front center console
and door panels with dual
tone Onyx Ivory front
dashboard and the style beige
upholstery uses the dialect of
elegance that reflects the
glorious ŠKODA history and
design language

fada.in | April 2019 F A D A Journal 49

News Basket

Honda Debuts Its Exclusive Premium Retail in India

Honda Motorcycle & Scooter a differen ated immersive
India Pvt Ltd (HMSI) experience for our big bike
announced its next step in customers. We are happy to
providing fun mobility in India announce India’s first BigWing
with the establishment of new in Gurugram which will serve
premium big bike business as a roadmap for further
ver cal – the Honda BigWing. expansion of iconic Silver Wing
Mark in India.”
Honda inaugurated India’s first
exclusive & premium BigWing Honda’s Pride
in Gurugram at ABW Tower,
IFFCO Chowk and also made The core value of Honda
the first milestone deliveries to BigWing is to create an
GoldWing, Africa Twin and environment to enhance joy of
CB300R customers. buying. The BigWing is
designed to evoke emo ons &
Be it urban riding, circuit highlight technology to let
racing or luxury touring, customers feel excitement &
Honda’s BigWing will cater to superior quality of Honda’s
all categories of premium premium models. A dedicated
motorcycle customers. With a corner with versa le range of
sprawling sales and service accessories will enhance joy of
area, Honda BigWing- riding and amplify new
Gurugram will provide opportuni es for customers.
personalised customer
experience and a er-sales Customer Experience
service exclusively for Honda
big bike models ranging from Overall dis nc ve concept is
300cc CB300R to the mighty designed to provide a cool,
1800cc Goldwing. sophis cated and premium
atmosphere. To ensure
Minoru Kato, President & CEO, maximum quality, Honda
HMSI, said “Earlier this year, BigWing is equipped with best
we made a commitment of machinery and facili es. An in-
expanding our premium showroom event area, with a
motorcycle business in India unique ambience will make
under Honda’s Silver Wing- customer’s most important
Mark. Riding on strong global moment – motorcycle delivery
legacy of Honda’s engineering – memorable. The community
& design philosophy, Honda lounge at showroom and
BigWing will introduce Indian service centre will provide
motorcycling enthusiasts to a customers a comfortable
new side of Honda providing environment.
them with excep onal
personalised experience” Customer Exclusivity

Commen ng on unveiling of The monochroma c design
first BigWing dealership in theme of black & grey
India, Y S Guleria, Sr VP, Sales & provides a quality stage for
Mktg, HMSI, said “Honda the motorcycles. Specialised
BigWing is an outcome of our product knowledge of
strong determina on to create industry experienced
professionals will further
excite customer curiosity.

50 F A D A Journal April 2019 | fada.in