FADA Journal - May 2017

Office Bearers contents

President PRESIDENT’s MESSAGE 7 Preparing for Disruption
INDUSTRY TRACK 8 Ban on BS III Vehicle Sales Takes a Toll on Commercial Vehicles
JOHN K PAUL OPINION
Popular Vehicles & Services Pvt Ltd 11 Fuel Retailing: Intensifying Competition to Reshape Fuel
Kuttukaran Centre, Mamangalam, Kochi - 682 025
Tel: +91-484-234 1134 / 7872 / 5013
E-mail: [email protected];

[email protected]

Retailing Sector - CRISIL

Vice President SURVEYS & STUDIES 16 • Automotive Dealers Moderately Optimistic
ATTENTION: FADA MEMBERS - Sewells MSXI Survey
ASHISH KALE
Provincial Automobile Co. Ltd 46 • TVS Tops in J D Power 2-W Customer Satisfaction Survey
Kingsway, Near Railway Station, Nagpur - 440 001
Tel: +91-712-391 1129 / 1150 20 • Engagement of GST Consultant for guidance of FADA Members
E-mail: [email protected]; • NADA 2017 Workshop Handouts with the Talk Video

[email protected]

Secretary General & Editor, FADA • No Need for Approval of New Models by State Transport
Journal Departments - Clarification issued by MoRTH

GULSHAN AHUJA COMPETITION LAW 22 Competition Law Updates - G R Bhatia
Federation of Automobile Dealers Associations KNOW OUR MEMBER
805, Surya Kiran, 19, K G Marg, New Delhi 24 Profile of Dehradun Premier Motors Pvt Ltd, Dehradun
Telefax: +91-11-6630 4852, 2332 0095 FADA NEWSLINE
E-mail: [email protected] • Web: fada.in 26 FADA Council Meeting, Regional Meeting and Awards Presentation
Ceremony at Jaipur
ADVERTISERS’ INDEX FADA ALBUM
NEW ON WHEELS 32 FADA’s Seminars on Decoding GST in Pictures
Back Cover UPGRADES & VARIANTS
V E Commercial Vehicles 60 34 • BMW M760Li xDrive Debuts in India
NEWS BASKET • New Dzire Launched
Front Inside Cover 2 • ISUZU Launches ‘mu-X’ Premium SUV in India
Tata Capital Financial Services CONSUMER CASE STUDIES
59 BLOG 38 • Hyundai Introduces New Xcent for India and Global Markets
Back Inside Cover • Sports Editions of Ford Figo and Aspire Introduced
Tata Motors 3 SALES REPORTS • New BMW 330i Rolled Out in India
4 NADA MUSINGS
Inside Pages 6 42 • General Motors to Stop Selling Cars in India
• Mahindra & Mahindra Financial Services 10 • Indian Automaker Mahindra Pulls Plug on Electric Car Sales in UK
• AMPL 19 • Eicher Trucks and Buses Launches Pro 5000 Series
• Force Motors 20 • Tata Motors Launches AMT Buses
• KK E Auto Care and Wash System 23 • Volvo Cars Announces ‘Make in India’ Plans
• Marikar Group 25
• Maurya Motors 36 45 NCDRC : M/s Fauzdar Motors - Petitioner
• Action Construction Equipment 40 Versus
• Action Construction Equipment 47 M L Sen and Anr - Respondents
• SKF Group 51
• Bagga Link 54 48 Winning in Mobility Comes Down to a Few Crucial Moments
• Prime Honda 55 - Isabelle Rio-Lopes, Kantar TNS, Brazil
• Exide Industries 58
• Sansera India 49 Vehicle Sales & Exports and Y-o-Y Growth - April 2017
• Carazoo Online Solutions
• Shriram Transport Finance 56 Major developments affecting Automobile Industry in US

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Editor: G K Ahuja



President’s Message

Preparing for Disruption

Dear friends,
The contours and dynamics of retail automotive business are changing at
alarmingly fast pace. The competition is intensifying with each passing
day. The fierce competition apart, there are other challenges galore –
Road safety and environment concerns inviting outcry of NGOs and
people, Judicial activism and overreach, proliferation of mobile telephony
and increasing use of digital technology for marketing and other business
operations, and growing presence and influence of social media.
Above all, the businesses will soon be confronted with the GST, which is
going to become a reality shortly. There is no gainsaying that the GST is
the biggest tax reform ever undertaken since independence and is going
to be a game-changer in the tax administration. Automobile dealer
fraternity is hopeful that the GST will help avoid cascading effect of
multiple taxes and streamline the tax system. At the same time, there are
apprehensions that it will bring in new challenges and complexities never
confronted before.
It is, therefore, incumbent on the automobile dealerships and, for that matter, other businesses to keep pace and change in
tune with the fast changing scenario and business paradigm. Otherwise, they would not be able to survive the disruption
caused by host of these challenges. Gearing for the disruptions is the need of the hour for the automobile dealers.
This message came out loud and clear from the deliberations of the Regional Meeting organised by Federation of Automobile
Dealers Associations (FADA) at Jaipur on 22nd April 2017. The meeting was organised jointly with Authorised Motor Vehicle
Dealers Association, Rajasthan (AMVDA).
The Regional Meeting at Jaipur gave me an opportunity to meet and interact with my fellow dealers in Rajasthan. I am
enthused by the overwhelming response evoked by the Regional Meeting. As majority of the issues facing automobile dealers
are local and State specific, FADA would like to have strong associations of automobile dealers at the local and regional levels,
which will not only take up local issues in a concerted manner, but will also act as bridge between FADA and automobile
dealers spread across the country.
We, in FADA Council, are continuing our endeavours to build connect and deepen relations with all stakeholders. Following
series of meetings with SIAM, individual OEMs and Government authorities, a 4-member team of FADA, led by our Vice
President – Ashish Kale, met Mr Ashok Lavasa, Finance Secretary, Government of India on 2nd May 2017. The meeting gave an
opportunity for FADA team to share our apprehensions on GST. As I understand from the members who attended the meeting,
FADA’s inputs and suggestions were well-received. The FADA team also requested the Finance Secretary to use his good offices
for favourable consideration and an early outcome of the submissions made by FADA at the meeting with the Hon’ble Finance
Minister on 2nd January.
The Supreme Court order of 29th March 2017 has given a jolt to the automotive industry and dealers. We, in FADA as responsible
corporate citizens, welcome the measures aimed at promoting clean environment and road safety. However, there is an
imperative need for a holistic approach to tackle this twin-problem. The isolated knee-jerk reactions not only lead to uncertainty
and disruption but also do not yield the desired results. All stakeholders, including the Government, industry, trade, NGOs and
experts, must join hands and lay down a clear roadmap to achieve the objectives of clean environment and safe motoring.
Needless to mention, automobile dealers are left with a sizable stock of unsold BS III vehicles for no fault of theirs. We would
urge the OEMs to extend necessary support to their dealers, enabling them to recover from the huge financial loss.
Look forward to your inputs and suggestions.
With best wishes,
Yours sincerely,

John K Paul

7 7 MaMya2y0210717

Industry Track

Ban on BS III Vehicle Sales Takes a Toll on Commercial Vehicles

As expected, the Supreme Court order banning sale of BS III Elite i20 and Creta.” HMIL’s exports performance was none-
vehicles put a brake on commercial vehicle and 3-wheeler too-enthusing, falling by 3.8% y-o-y to 11,610 units during
sales in April 2017. However, passenger vehicle and 2- the month.
wheeler segments, not so much affected by the ban, notched
up good sales numbers. Total domestic sales encompassing Riding on the robust demand for new Fortuner and Innova
passenger vehicles, 2/3-wheelers and commercial vehicles Crysta. Toyota Kirloskar Motor (TKM) reported whopping
grew by 6.8% y-o-y to 2,030,476 units during the month. 52.0% growth in April 2017 with domestic sales tally of 12,964
units (April 2016: 8,529 units).
Passenger vehicles in overdrive
N Raja, Director and Sr Vice President, Sales & Marketing,
Maintaining its growth momentum, the Indian passenger TKM, commented, “We have been able to sustain robust
vehicle market began the new fiscal on a robust note. growth in the month of April 2017. This growth has been
Domestic sales of passenger vehicles, comprising cars, UVs propelled by the overwhelming response the new Fortuner
and vans, stood at 277,602 units in April 2017, translating has received. The launch of new Fortuner has helped us up
into a healthy growth of 14.7% over 242,060 units a year this ante as it has already sold more than 12,200 units in
ago. Buoyancy in passenger vehicle sales was driven by new less than 6 months of its launch. Considering the segment in
models, refreshed variants and an improvement in consumer which the Fortuner is present, this is a great achievement
sentiment, resulting in increased footfalls in the showrooms for us.”
and higher sales.
Mahindra & Mahindra (M&M), registering domestic sales
Maruti Suzuki India (MSI), the country’s largest carmaker, volume of 19,325 passenger vehicles in April 2017, was down
carried forward the vibrancy of FY2016-17 to April 2017, 15.0% (April 2016: 22,655 units). “We are hopeful that the
selling 144,081 units in domestic market and witnessing a new financial year will bring in positive sentiment for the
heady 23.1% growth (April 2016: 117,045 units) in the automotive industry with the key demand drivers in place.
process. The company’s entry level, bread-and-butter duo Factors such as the ongoing infrastructure development
of Alto and Wagon R, back on growth curve, sold 38,897 initiatives, outlook for a normal monsoon and the
units in domestic market, which represented a 21.9% surge expectation of a stable policy environment will fuel growth
vis-à-vis 31,906 units in April 2016. Domestic sales of the in the coming days. Going forward, we are looking for a good
six compact cars comprising Swift, Ritz, Celerio, Ignis, Baleno growth momentum with our planned refreshes during
and Dzire posted a robust 39.1% growth at 63,584 units FY2018,” Rajan Wadhera, President, Automotive Sector,
during the month (April 2016: 45,700 units). Thanks to the M&M, said.
galloping sales of Vitara Brezza, MSI’s UV sales (Gypsy, Ertiga,
S-Cross, Vitara Brezza) rose 28.6% to 20,638 units in April Another home-grown player, Tata Motors, however, came
2017 from 16,044 units in April 2016. However, the up with an impressive performance, clocking a 15.0% uptick
company’s exports witnessed a sharp 29.4% decline to 6,687 in domestic passenger vehicle sales that added up to 14,066
units in April 2017 vis-à-vis 9,469 units in April last year. units in April 2017 as against 12,230 units in April 2016. The
growth was propelled by continuing strong demand for Tata
Hyundai Motor India Ltd (HMIL), the country’s second largest Tiago and enthusing response to new offerings – Tata Tigor
car manufacturer, posted domestic sales of 44,758 units in and Hexa.
April 2017, up 5.7%, compared to
42,351 units in April 2016.
Commenting on the April 2017 Sales (Domestic + Exports) during April 2017 viz-a-viz April 2016

numbers, Rakesh Srivastava,
Director (Sales and Marketing),
HMIL said, “Hyundai with a
volume of 44,758 units continued
its growth momentum on a
strong base of last year, driven by
a tremendous response to the
new Xcent and strong
performance of the Grand i10,

May 2017 8

Industry Track

Honda Cars India Ltd (HCIL) posted domestic sales of Bajaj Auto was another two-wheeler major to register de-
14,480 units in April 2017, up 38.1% over 10,486 units in growth in domestic sales that declined by 19.2% to 161,930
April 2016. Honda City continued to be the best-selling car units in April 2017 (April 2016: 200,433 units). Bajaj Auto’s
for HCIL with 5,948 units, followed by the WR-V (3,266 units), two-wheeler exports were, however, in fast forward mode,
Jazz (2,061 units), Amaze (2,029 units), BR-V (701 units), Brio leapfrogging by 44.3% y-o-y to 132,002 units during the month.
(438 units), CR-V (36 units) and Accord Hybrid (1 unit). HCIL Staying on course, TVS Motor Company reported modest
reported to have received over 25,000 bookings for Honda growth of 4.0% in domestic two-wheeler sales at of 205,522
City since its launch in mid-February, and 12,000 bookings units in April 2017, as against 197,692 units a year ago. TVS
for WR-V since its launch in mid-March. two-wheeler exports grew by handsome 43.9% y-o-y to
Meanwhile, Ford India was in fast lane, witnessing a healthy 35,485 units during the month.
growth of 16.6% in domestic passenger vehicle sales that India Yamaha Motor sold 68,827 units in domestic market
stood at 7,618 units in April 2017 (April 2016: 6,531 units). during April 2017, up 7.6% (April 2016: 63,942 units).
In April, the carmaker introduced Sports Editions of its Figo Continuing its impressive run, Royal Enfield registered
hatchback and Aspire compact sedan to give further push domestic sales of 58,564 units in April 2017, up 24.5% (April
to its sales. Ford India’s export numbers were also impressive, 2016: 47,037 units). Including exports that numbered 1,578
soaring by 76.4% y-o-y to 17,531 units during the month. units, the company crossed the 60,000-unit mark for the first
The German carmaker, Volkswagen India was on a high- time in a month to clock 60,142 units of sale during the month.
growth trajectory as well, with the company’s domestic sales Suzuki Motorcycle India witnessed domestic sales of 36,306
growing by 20.9% y-o-y to 3,673 units in April 2017. The units in April 2017, growing by 43.2% y-o-y.
company’s exports, though clocking decent numbers, were
down 2.6% y-o-y to 7,666 units during the month. Commercial Vehicles Feel the Heat of Supreme Court
Order
Two-Wheelers Remain on Course
Heavy discounting in March 2017 to clear BS III stock,
Two-Wheeler sales remained steady, thanks to growing implementation of BS IV emission norms from April and the
scooterisation, improving rural sentiment and forecast of subsequent price increase in vehicles resulted in sharp fall
normal monsoon. Total two-wheeler sales in the Indian in CV sales. M&HCVs were the worst affected.
market at 1,674,796 were up 7.3% y-o-y. Market leader Tata Motors saw its domestic CV sales fall by
The pick of two-wheeler players was Honda Motorcycle and 36.8% y-o-y to 14,778 units in April 2017. The company said
Scooter India (HMSI) that made a big stride forward to close that its vendors struggled to keep pace with the sudden spurt
the gap with the market leader Hero MotoCorp. On the back in demand for BS IV vehicles due to the ban on sale of BS III
of consistently growing demand for its Activa range of vehicles effective from 1st April.
scooters, HMSI witnessed a stupendous 33.3% surge in With domestic sales volume at 6,408 units in April 2017,
domestic sales at 551,732 units, which was shy of just around Ashok Leyland witnessed a steep 32.6% decline vis-à-vis
34,000 units from the corresponding sales tally of 585,655 9,514 units a year ago.
units clocked by Hero MotoCorp. HMSI’s exports were also Mahindra & Mahindra posted a 16.4% y-o-y uptick in its
in overdrive, zooming by 58.7% to 27,045 units in April 2017 domestic CV sales that aggregated 15,066 units in April 2017.
from 17,040 units a year ago. However, Mahindra M&HCV sales in domestic market
Yadvinder Singh Guleria, Sr Vice President - Sales and Mktg, plunged by 41.0% y-o-y to 372 units during the month.
HMSI, said, “April 2017 results mark a great entry for Honda VE Commercial Vehicles registered a massive 44.5% slump
into the new financial year! Honda sold a total of 578,929 in domestic sales of Eicher branded trucks & buses, which
two-wheelers with phenomenal 34% growth on the back of stood at 2,578 units in April 2017.
customer demand for Honda’s upgraded BS-IV portfolio. Ban on sale of BS III vehicles apart, uncertainty &
Within segments, automatic scooter sales led the apprehensions arising out of the impending introduction
momentum with 40% growth to cross 3.5 lakh mark for first of GST from July 2017 is affecting the CV sales currently.
time ever (368,618 units).” However, with the forecast of normal monsoon this year,
Hero MotoCorp saw its domestic two-wheeler sales slip by the buoyancy is likely to return soon
2.5% to 585,655 units in April 2017 from 600,525 units in April
last year. The company’s exports were also in negative terrain,
declining by 18.4% y-o-y to 9,963 units during the month.

9 May 2017



Opinion

Fuel Retailing: Intensifying Competition to Reshape Fuel Retailing Sector

CRISIL Research

Both PSU OMCs & private players to feel margin pinch as As a result of the implementation of price control, their
competition intensifies; however the margin decline to combined market share fell below 1% by 2009-10. While the
be relatively lower for PSU OMCs PSU OMCs were compensated by the government for the losses
India’s fuel retailing landscape is undergoing a structural shift made on selling fuel at a price lower than the cost, no such
with the re-entry of private players. In fact, private fuel retailers largesse was given to private retailers.
are expected to rapidly corner 12-15% of the market by 2020- With the government again deregulating prices at the pump,
21, in terms of retail outlet share, from a mere 1% in 2009-10. private players have again entered the fray. In June 2010,
The share in volume terms is projected to be higher at 13-16% the government deregulated petrol prices to reduce the
by 2020-21, with the addition of 6,000-8,000 outlets by private burden of under-recovery. With falling crude oil prices,
players, from 4-5% in FY16. This will inevitably impact the diesel was also deregulated in October 2014. RIL quickly
throughput per outlet. To better compete, existing players are reopened 1,151 of its 1,400 pumps, while Essar O il had
being forced to reinvent their business models. The one 2,682 active retail outlets, as of December 2016. Shell
divergent trend between private and public players will be the operated 83 outlets as of December 2016. Together, private
targeted customer base. While private players are expected to players once again accounted for 6% share in outlet terms
target high throughput regions and expand particularly in by 2015-16, despite the pie having grown larger - PSU OMCs
highways segment, public sector fuel retailers are expected to had 53,224 outlets. The reason for the enthusiasm from
focus to underpenetrated rural areas, apart from defending private players lies in the fact that unlike developed
their share on highway business. countries, such as the US and the UK, where fuel demand
Margins will experience stress amid this rapidly expansionary has stagnated, Indian fuel demand is accelerating - rising at
phase. For private players, margins are expected to get 5-6% CAGR over the past five years.
impacted, as they open outlets at greater distances from Sharp rise in the sales of PV and 2-W is expected to increase
existing depots/ refineries. The marketing margins for public petrol demand by ~8- 9% CAGR up to 2020-21. PV sales are
sector fuel retailers are expected to decline as well, but to a projected to increase at 10% CAGR over the next five years.
relatively lower extent as compared to private players, as they Two-wheeler sales are expected to grow at 8-9% CAGR in the
will expand in rural areas and adopt dynamic pricing strategies next five years, mainly driven by rural demand.
to prevent erosion of profits. Similarly, demand for diesel is expected grow at a CAGR of 4-
Despite the challenges, the industry is projected to be on a 5% between 2015-16 and 2020-21, as improvement in the
strong footing in the medium term due to growing car and 2- macroeconomic scenario is expected to lead to a pick-up in
wheeler penetration and growth in road freight movement. industrial activity.
Deregulation resulted private companies gaining market Share of private player to increase driven by faster
share and improved profitability for the sector addition of retail outlets
Private retailers, such as Reliance Industries, Essar Oil and Shell, Looking at the huge future potential in the fuel marketing
had, in fact, tripped in their first attempt in fuel retailing in segment, a number of global players have evinced interest to
2002, as the government brought in price control at the pumps enter the Indian fuel retail segment. BP has secured a licence
post-2005, when crude oil prices shot up significantly. to open 3,500 retail stations. Total SA and Saudi Aramco are
also exploring opportunities. These players can develop a
sizeable customer base, with their aggressive marketing,
branding and international quality of services.

11 May 2017

Existing private players - RIL, Essar O il and Shell – have Compared with global peers, though, the average throughput
aggressive expansion plans as well. RIL plans to restart all its per retail outlet is much lower at ~160 klpm. The same in US
pumps and expand thereafter; RIL has a licence to operate would be 210-220 klpm. This is because, globally, retail outlets
5,000 pumps. Also, Essar Oil, which has announced takeover have consolidated (Between 1994 and 2015, the number of
deal with Rosneft, plans to expand its network significantly. retail fueling sites in the US fell from 202,800 to 150,000).
The company has a licence to operate 5,000 outlets. Further, Higher cost of running petrol pumps as well as newer models
Shell has a licence to open 500 outlets. of selling fuel has led to the consolidation of pumps in
All in all, private players (existing and upcoming) are expected developed countries like the US.
to add 6,000-8,000 outlets by 2020-21. This will enable them However, in India, the outlets are concentrated in a few areas
to garner a market share of 12-15% in terms of outlets and 13- with higher vehicle penetration. The other areas have relatively
16% in terms of volume of fuel sold, as they continue to focus less number of petrol pumps. With rising two-wheeler
on high throughput areas. During the period, PSU OMCs to population in rural areas and increasing fuel demand, more
add ~9,000 retail outlets. The relatively slower pace as petrol pumps will be needed in such areas for easy access of
compared to private players is because PSU OMCs have already fuel to customers.
increased their outlets significantly over the last 10-12 years. While PSU OMCs are expected to focus on expanding into rural
Their focus has shifted to increasing volume sales, enhancing segment along with expansion of network along the highways,
customer experience and increasing their brand reach. private players are expected to concentrate majorly in the
Throughput per outlet and profitability to come under highway segment. As a result, PSU OMCs will continue to
pressure with intensifying competition dominate the rural segment with 99% of the total outlets in
PSU OMCs rapidly expanded their retail network after the entry this segment. Private players’ share in highways segment is
of private players. The total number of retail outlets grew at a expected to move up to 25% by 2020-21 from the current 13%.
CAGR of 13% between 2005-06 and 2015-16 to 56,190 outlets, Currently, highways have the highest throughput at ~240 klpm,
while the total consumption of petrol & diesel rose at 7% CAGR with private players comprising the dominant pie. However,
during the same period. As a result of the massive expansion, as private players and PSU OMCs expand their network along
throughput per outlet for PSU OMCs fell to ~160 klpm. Private highways, the average throughput is expected to drop
players had a much higher throughput per outlet of ~220 klpm. significantly to ~200 klpm by 2020-21. Further, as the highway
segment gets saturated, private players will also have to enter
low throughput regions. As a result, the throughput of private
players is expected to decline from the current 220 kmpl to
less than 200 klpm till 2020-21.
Expansion in rural market to lower throughput of PSU
OMCs
A considerable chunk (~40-50%) of the incremental outlets by
PSU OMCs are expected to be in rural areas, where average
throughput is significantly low at~90 klpm. Further, throughput

May 2017 12

along urban areas and highways is also expected to experience The cost incurred by players for marketing fuels has three
stress with a rapid increase in the number of outlets. Hence, components: (i) transportation cost, (ii) depot/storage cost,
we expect average throughput for PSU OMCs to decline to <150 and (iii) dealer commission. Out of the three components,
klpm in the next 4-5 years from the current 160 klpm. dealer commission is relatively similar for private and public
At the industry level, we expect throughput per outlet to players. However, PSU OMCs incur significant cost (Rs. 1.0-1.5
decline to 150-155 klpm with rapid expansion by private players per litre) in transporting fuel from their depots or storage areas
and PSU OMCs. to their outlets. On the other hand, retail outlets of private
Dropping throughput to impact dealer returns for new players are concentrated in locations close to their refineries,
outlets thus minimising their logistic cost. Further, private players do
With falling throughputs, dealer return of investment (RoI) will not have depots for storing fuel. Fuel directly comes from the
also decline, thus reducing the incentive to make investments. refineries. In contrast, PSU OMCs maintain depots in different
As a result, in order to attract dealers for a new outlet, players locations to store fuel and cater to the requirements of pumps
might have to compensate them with higher commission or in a specific region. This results in additional expenses for PSU
other means of compensation. A case study has been given OMCs who have to maintain the depots as well. For private
below where we have analysed the impact on RoI with falling players this also translates into savings in overall marketing
throughput for a DODO (dealer owned, dealer operated) outlet cost, and contributes to higher marketing margins.
on highway. Additionally, a typical PSU refiner sells fuel to the marketing
Marketing margins to decline for private companies and arm at RTP (refinery transfer price). Private players, however,
PSUs; Dynamic pricing models to partially offset the are able to transfer the fuel to their marketing arm at a price
downfall in profitability that is slightly lower than the RTP on account of lower cost
Deregulation led to improvement in margins for PSU OMCs of processing fuel, owing to large, complex refineries and
in the last 3 years economies of scale.
As reproduced in the chart below, the marketing margin on
petrol, after the deregulation in 2010, has increased to an
average of ~Rs. 1.3 per litre in 2016, compared with Rs. 0.63
per litre in 2010. With the deregulation of diesel in 2014, the
marketing margin on diesel, which was fixed at Rs. 0.7 per litre,
improved to Rs. 1.2 per litre in 2016. These figures broadly
represent marketing margins earned on retail fuel by PSU OMCs.
In contrast, private refiners command higher marketing
margins (Rs. 2.0-2.5 per litre). This is majorly attributed to
significantly lower marketing costs that private players incur
on account of sales being concentrated close to location with
existing infrastructure.

13 May 2017

Economics of retail outlet - DODO model operate in proximity to their refineries, which results in lower
Economics of a fuel retail outlet can vary significantly from one location logistics cost. Further, they do not incur storage cost to maintain
to another, on account of huge differences in location-specific depots to store fuel. However, going forward, as these players
parameters. For e.g., real estate prices vary for a city outlet, an outlet expand their scale of operation, they will need to expand to
on a highway or one in a rural area. Even within a city, there are huge locations at significant distances from their refineries. This will
variations in real estate prices. Apart from real estate, average sales increase their logistics cost. As a result, the marketing margin
per outlet as well as investment required for setting up an outlet are of private players is expected to decline from Rs. 2.0-2.5 per
location-specific. Due to this, there is not a single set of parameters litre.
that hold true for all outlets to determine retail outlet economics. Also, these players will have to incur significant capital
Hence, to best reflect the typical cost economics, CRISIL Research has expenditure in opening their own network of storage
opted for the DODO (dealer owned, dealer operated) outlet model infrastructure to extend their reach to distant areas. Though
for a highway outlet. the players have complete freedom to pass on the logistics
The PSU OMCs are expected to follow a DODO model for new outlets cost, but competition will restrict players from doing so except
because of lower investment required. As the DODO model is expected in cases where competition is limited. As a result, as these
to gain in prominence with intensifying competition, we have worked players expand their scale of operations, an increase in
out a sensitivity of dealer profitability with respect to dealer marketing cost is expected to reduce marketing margins.
commissions on retail fuels.
A special case: ROI of typical highway outlet
Sensitivity analysis of dealer ROI with changing throughput and dealer
commission

The base case, denoted in blue colour, shows dealer commission of
Rs. 2.6 per litre and Rs. 1.65 per litre for petrol and diesel, respectively,
for an average throughput of 240 klpm. Hence, the RoI for a dealer at
a DODO outlet on a national highway is ~13%.
As CRISIL Research expects the throughput of outlets along highways
to decline to 190-200 klpm from ~240 klpm currently, dealer RoI is
expected to drop to 11%, assuming the same level of dealer
commission. Hence, PSU OMCs will have to compensate dealers by
increasing their commissions by 20-30 paise per litre on retail fuel to
maintain dealer profitability at 13%.

Private players to experience stress on margins with New entrants to source fuel at higher cost
intensifying competition and expansion into newer areas As most new players who are planning to enter the market do
With intensifying competition due to entry of new players as not have their own refineries in India, sourcing of fuel is a
well as expansion of the network by existing players, we expect challenge for them. These players can either import fuel from
private players to incur higher logistics and storage cost which their refineries, or source it locally by entering into purchase
will result in reduction of profitability. Currently, private players agreements with the existing players. However, getting fuel
from the existing players would be difficult as they would need
to feed their own outlets as they expand their network. In such
a scenario, these new players would have to depend on imports
to cater to their fuel requirements, which would increase their
procurement cost, thereby impacting marketing margins.

May 2017 14

Opinion

While private players’ profitability is expected to marginally requirements. This will lead to improvement in efficiency of
decline, they will still be willing to endure the loss in profitability operations and optimization of overall costs, helping players
as gaining market share will be their priority in the initial phase with better margins.
of expansion. These private players have strong balance sheets Dynamic pricing, i.e. charge different prices in retail outlets in
and high cash flows, which they can leverage on to operate at the same area based on traffic volume and time of the day, is
lower profits initially and gain a strong foothold in the market. another strategy that players are expected to adopt. Dynamic
PSU margins to be under stress, as competition in the pricing can enable players to tap the differences in demand
highway segment to impact profitability; higher based on location and different times of the day, thereby
contribution from low margin rural areas to impact enabling them to make higher margins. The above strategies
profitability can help recovering a certain portion of the lost margins as a
As competition is expected to intensify with the entry of the result of rising competition.
private players, PSU OMCs are expected to face significant Strategies directed towards newer revenue models &
competition in the highway segment. Consequently, the PSU enhancing customer experience to determine success of
OMCs, in order to retain their market share, would also have players
to offer similar reduction in prices, therefore putting pressure With newer revenue and pricing models, players are expected
on marketing margins. to be able to better compete in the retail fuel market amid
PSU OMCs are focusing of expanding into rural areas. Rural rising competition. One key focus area will be revenue models
areas currently make lower marketing margins as compared with emphasis on non-fuel retail. In countries like US and UK,
to highway and urban segments due to higher cost of servicing gas stations are opened along with chain retail stores and
these locations and lower volumes. Due to low volumes, these supermarkets. As of now, such a model has not been applied
areas have limited competition from private players. Hence, in India as margins in selling petrol and diesel are significantly
PSU OMCs will have the flexibility to charge relatively higher low compared to margins made by the retail business, which
prices in rural areas as compared to highways, where they face make it unattractive for the supermarket kind of structures.
stiff competition from their private counterparts. Further, PSU However, some private players like RIL, which already has a
OMCs are also tapping into non-fuel initiatives in these areas, strong presence in the non-fuel retail business through its chain
adopting practices like making the retail outlet a one-stop of retail stores (operates ~3,553 stores across the country) such
solution for villagers, providing additional services such as e- as Reliance Fresh, Reliance Trends, etc, can adopt this model.
commerce solutions, banking facilities, etc. All these factors Further, strategies focusing on enhancing customer satisfaction
are expected to improve rural margins marginally, but rural are being adopted by PSU OMCs. For example, BPCL plans to
business will continue to make lower profits as compared to provide commercial vehicle financing and working capital loans
the highway and urban segments. Consequently, the increasing to fleet operators, in particular, by entering into strategic
presence of PSUs in these low margin areas is expected to put partnerships with banks and financial services companies. In
pressure on their overall marketing margins. rural areas, they have tied up with e-commerce platforms like
Shopclues, etc, providing delivery of online goods bought at
Daily price revision & dynamic pricing to provide greater the petrol pump, which is far easier to locate. In urban areas, a
pricing flexibility, offsetting the decline of margins regular outlet of BPCL has a throughput of 170-180 klpm. In
An important practice that fuel retailers are adopting is daily contrast, a “Pure for sure” BPCL outlet in the same area has
pricing of petrol and diesel. While the players have currently throughput as high as 250 klpm because it offers additional
introduced it as a pilot in five cities, it will gradually be expanded facilities and loyalty programmers to customers. Such
to cover the entire country. As of now, PSU OMCs have been differentiating initiatives are rapidly being taken up by PSU
revising prices on a fortnightly basis, which prevents them from OMCs to combat with the upcoming competition.
capturing daily movement in global crude oil prices. With daily In conclusion, despite stress on profitability, the market
pricing, players will have higher flexibility to revise prices and potential of the fuel retail segment in India is expected to be
optimize working capital requirements. Currently, with robust, with increasing car penetration, healthy economic
fortnightly revisions, customers buy more petrol and diesel few growth to support commercial vehicle demand. The ability of
days before a revision if a price rise is anticipated. Similarly, if players to enhance throughputs by selecting attractive
prices are anticipated to fall, customers shift some part their locations for setting of pumps and optimizing costs by use of
consumption to the next period of revision. With daily revision technology and providing additional services will determine
in prices, this shift of consumption will not take place, stabilizing success over the longer term
monthly sales, and therefore inventory and working capital

15 May 2017

Surveys & Studies

Automotive Dealers Moderately Optimistic: Sewells MSXI Survey

The Indian automobile industry has always amazed analysts • The Passenger Car and Two-Wheeler ADCI stood at +28,
with its growth and resilience to market conditions. representing a moderate optimism in the dealers.
Demonetization worries are passed now. Passenger vehicle
sales in India crossed the three million milestone for the first • The Commercial Vehicle ADCI stood at +25, also indicating
time in 2016-17, with the segment witnessing a healthy growth moderately optimistic sentiment. This index has shot up
of 9.23%. by +13 since the last survey.
Growth was witnessed across Two-Wheeler and Commercial
Vehicle segments too and overall the automotive industry • The index for Passenger Car segment took a dip at +28
closed the FY 16-17 with a growth of 5.41%. during Jan-Mar 2017, as compared to +31 during Oct -
In the automotive industry, dealers enjoy a unique position, Dec 2016, indicating a slight decline in the optimism of
which is very close to the customers. They are also in constant the Passenger Car dealers.
touch with factory staff, other dealers, financiers and market
intermediaries. Consequently, each dealer has exposure to a • The sentiment was seen soaring high for the Two-Wheeler
plethora of information that in turn, shapes his/her views dealers, where the index was at +28 compared +19 at the
about the future of their business in short and medium term. end of Oct - Dec 2016 quarter.
The Sewells MSXI Automotive Dealer Confidence Index (ADCI)
during Jan-Mar 2017 indicates that the dealers are moderately • Commercial Vehicle dealers’ sentiment also strengthened
optimistic with the present business conditions in the country. in this period. In contrast to the last quarter, the index
It is interesting to note that an increase in confidence among moved up to +25 vis-a-vis a low of +12 during Oct - Dec
the Two-Wheeler and Commercial Vehicle dealers is also 2016 quarter.
observed in this survey.
As per the design, the ADCI’s range is between -100 and +100, ANALYSIS OF SURVEY FINDINGS
where an index score of -100 represents the most pessimistic
outlook, and +100 indicates the most optimistic outlook. The 1 Current Economic Environment
index is based on how dealerships see the overall market and
their businesses performing in next six months. • Overall, 67% of the dealers felt that the current
The high level findings of the survey at the end of Jan-Mar economic environment in the country is positive. This
2017 quarter are: is a major jump in confidence compared to last
• The overall ADCI stood at +27 indicating a slightly survey’s findings wherein 92% of the respondents
reported a negative sentiment.
optimistic sentiment amongst the dealers. It has only
moved +4 point since the last survey, indicating a slight • More than 60% of all Passenger Cars, Commercial
increase in dealer confidence. Vehicles and Two-Wheeler dealers felt positive
economic environment in the country.

2. Impact of Current Economic Environment on Local Market
• 59% of the dealers felt that the impact of the economic
environment on their local market was positive. This
is again a major shift from the last survey’s findings
where 95% dealers expressed negative impact of
economic environment on their local market.

May 2017 16

• Two-Wheeler dealers felt most confident with 71% • Commercial Vehicle dealers seem to be carrying a
respondent stating positive impact on the local market. higher inventory with 93% of stating that they have
higher inventory than same period last year.
• Passenger Cars and Commercial Vehicle dealers also
felt positive impact of current economic environment • More than 50% of the Passenger Car and Two-
on their local market. However, their percentage is Wheeler dealers were also seen carrying more
less compared to Two-Wheeler dealers at 52% and inventory in this quarter at 53% and 71%, respectively.
64% respectively.
SALES • INVENTORY • PROFITS
3. Impact of Current Economic Environment on Dealership • There is a three-fold increase in the dealers who felt
• After a continuous decline in confidence on
dealership business for the past three quarters, this that the profit level of their dealership has been
quarter saw an increase in dealer confidence. 59% higher in this quarter, as compared to the dealers
of the dealers felt that the current economic reporting high profits in the previous quarter.
environment is positive for dealership business. • While majority of dealers across Passenger Cars, Two-
• Commercial Vehicle (70%) and Two-Wheeler (71%) Wheelers and Commercial Vehicles felt they had
dealers felt more confident for their dealership higher profits in the previous quarter, only 6% of
business as compared to Passenger Car Dealers (51%). Passenger Cars and 3% of Two-Wheeler dealers
reported ‘Much Higher’ profits.
4. Dealership Performance vis-a-vis Same Period Last Year
SALES • INVENTORY • PROFITS 17 May 2017
· 71% of the dealers felt that they had higher sales in
the Jan-Mar 2017 quarter.
· 74% of both Passenger Cars and Two-Wheeler dealers
felt that their dealership sales were higher in Jan-
Mar 2017 quarter.
• 57% of the CV dealers felt that the dealership sales
were lower in the Jan-Mar 2017 quarter.
SALES • INVENTORY • PROFITS
• 66% of the dealers stated that they were carrying
more inventory compared to same period last year.
There has not been much change in this percentage
since the last quarter wherein 69% of the dealers
reported having high inventory.

Surveys & Studies

5. Dealership Performance vis-a-vis Previous Quarter 83% of the dealers felt that the market performance
will be good in the next six months. Of these, 17%
SALES • INVENTORY • PROFITS felt that it will be ‘quite good’.
• 54% of the dealers felt that their sales in the Jan- • However, the proportion of those expecting a poor
performancehas not changed significantly in thisquarter.
Mar 2017 quarter were higher than the sales in Oct -
Dec 2016 quarter. It should be noted that the survey
period also coincided with the post demonetization
period, which had seen a fall in consumer spend • Passenger Car dealers are the most optimistic of the
across categories. lot. 24% of the dealers felt that the market
performance will be ‘Quite Good’ over next six months.

• Close to 60% of the Passenger Cars and Two-Wheeler 8. Expected Dealership Performance Over Next Six Months
dealers has reported higher sales in this period,
indicating strengthened consumer confidence. • For the last two quarters, dealers have expressed
positive sentiments for an improved dealership
• None of the Commercial Vehicle dealers stated ‘Much performance over next six months, which also
Higher’ sales; however 40% stated ‘A little Higher’ coincides with the expected market performance.
sales compared to the previous quarter.
• 35% of the Passenger Car dealers felt that the
SALES • INVENTORY • PROFITS performance of their dealership will be ‘quite good’
• 61% of the dealers felt that their inventory levels compared to 26% of overall respondents.

went up as compared to 82%, who felt the same in • CV and Two-Wheeler dealers are not as upbeat as
the last quarter. The reduction in dealers expressing Passenger Car dealers. Only 10% and 16% of these
higher inventory may be attributed to the higher sales dealers felt that their dealership performance will be
on account of greater availability of currency after ‘Quite Good’ over the next 6 months.
lifting of curbs on bank withdrawals.

• A much higher proportion (93%) of CV dealers stated 9. Expected Dealership Performance Over Next Six Months
higher inventory compared to Car and 2W dealers. Compared to the Present Level

SALES • INVENTORY • PROFITS SALES • INVENTORY • PROFITS
• 46% of the dealers stated that their profit was higher • Overall, 83% of the dealers felt that their sales will

than the previous quarter. be higher than the present level in the next six
• The Passenger Car dealers were more upbeat than months. 11% out of these felt that the sales will be
‘Much Higher’ compared to the present level. This
the others. 49% felt that their profit was higher than optimism has sustained over the last three quarters.
that in the last quarter.

• More than 50% of the Two-Wheeler and Commercial • The proportion of those who expect ‘Much Higher’
Vehicle dealers felt that they were making less profits sales was the greatest in the case of Two-Wheeler
compared to the previous quarter. dealers (16%), followed by CV dealers (13%)

6. Expected Economic Environment Next Six Month • The Passenger Car dealers also maintained an
Compared to the Present optimistic view (85%) and expected the sales to be
• Overall 87% of the dealers felt that the economic higher in next six months. However, only 8% of the
scenario in the country is going to improve in the dealers felt that the dealership performance will be
next six months. This trend may be attributed to the ‘Much Higher’.
proposed GST implementation in the coming months.
• Across all the categories, strong sentiments were SALES • INVENTORY • PROFITS
expressed for a positive economic environment in the • The apprehension about the inventory levels
country in the next six months. More than 80%
dealers across Passenger Cars, Two-Wheelers and continued and 77% of the dealers expected higher
Commercial Vehicle felt that the economic inventories in next 6 months.
environment will be positive in the country. • Though all Passenger Cars, Two-Wheelers and
Commercial Vehicle dealers felt that they will have
7. Expected Market Performance Over Next Six Months higher inventory, 30% of Commercial Vehicles dealers
• In line with the hope for revival over next six months, felt they will have ‘Much Higher’ inventory which is
largest in the lot.

May 2017 18

Surveys & Studies

SALES • INVENTORY • PROFITS 11. Dealership Opinion on Impact of GST Implementation
• The expectation of higher profit has taken a slight on Vehicle Sales at Dealership
• In this edition, we asked dealers about how the GST
dip as compared to the previous quarter. The number implementation in the coming few months will
of dealers who felt that the dealership profits will be impact vehicle sales at the dealership.
‘Much Higher’ in the next six months have dropped
to half in this quarter. • Interestingly, 34% of the participating dealers do not
• Passenger Car dealers expressed the most confidence have any opinion on the impact of GST
on this parameter. 76% of the dealers expect higher implementation on sales.
profits over next six months.
• More than 50% of both Two-Wheelers and CV dealers • This result also expresses a need to better inform the
felt they will have higher profits over next six months. automotive retail network top management about
10. Expected Manpower Strength Over Next Six Months GST implementation and its impact
• 53% of dealers expected higher manpower level in
the next six months as compared to present. It is
supported by the sentiment of 83% dealers who felt
that their sales level will improve in the next six
months.
• CV dealers stated a strong manpower requirement
over the next 6 months with 27% stating that the
manpower strength required will be ‘Much Higher’.
• Passenger Car and Two-Wheeler dealers also stated
more requirement of manpower in the next six
months, which can be attributed to their confidence
on sales (More than 80% for both the categories) in
the next six months.

MARIKAR GROUP OF CONCERNS

DSK Benelli Motowheels Pvt Ltd - Benelli Motorcycles; Eicher Motors Ltd - Royal Enfield Motorcycles;
Honda Motorcycle & Scooter India Pvt Ltd - Honda Motorcycle & Scooters; Mahindra First Choice

Wheels Ltd - Pre-Owned Cars; Nissan Motor India Pvt Ltd - Nissan Cars and Datsun Cars; Skoda Auto
India Pvt Ltd - Skoda Cars; Canon India Pvt Ltd - Canon Products; Gabriel India Ltd; NXT Automart (India)

Ltd - Drivol, Duracell, FIAMM, Bluechem; PETRONAS Lubricants (India) Pvt Ltd; R&R Textile - Ramraj,
Ramyyam; TIDC India Ltd; and Whirlpool of India Ltd - Home Appliances.

Branches: Alappuzha, Aluva, Attingal, Chavakkad, Cochin, Irinjalakuda, Kalamassery, Kollam, Kozhikode,
Kulasekharam, Marthandam, Nagercoil, Nedumangad, Pathanamthitta, Thrissur, Trivandrum and Varkala.

Phone: 0471 - 2477420, 2471814, 2465882 | Hotlines: 9961 88 9000 | Fax: 0471 2462630 |
E-mail: [email protected]

19 May 2017

Attention: FADA Members

Engagement of GST/Service Tax Consultant

A GST/service tax consultant – Ms Puloma Dalal, FCA based in Mumbai, has been engaged by FADA on retainership to help
members deal with the complexities of GST/service tax law and procedures. She will, on reference made by FADA, guide and
give legal opinion on various issues relating to GST/service tax as applicable to automobile dealers.
FADA will forward the queries raised by members to Ms Puloma Dalal for her opinion.
While Ms Puloma Dalal will, essentially, give legal position and clarification, supported by case law, on various GST/service tax
issues raised by FADA members, those wanting to engage her as counsel to fight their cases in litigation, will have to pay
separately as per terms that may be mutually agreed to.
Members seeking clarification or legal position relating to GST/service tax as relevant to automobile dealers, may send their
queries to FADA office at 804-805, Surya Kiran, 19, K G Marg, New Delhi (E-mail Id: [email protected]).
The service is offerred to FADA Members free of charge.

NADA 2017 Workshop Handouts with the Talk Video

A delegation of over 40 automobile dealers led by John K Paul, FADA President participated at NADA 2017 Convention in New
Orleans held from January 26 – January 29, 2017.
FADA has purchased 50 workshop compilations from NADA at special rate of USD 250 (Rs. 17,500) per user for the benefit of
automobile dealers especially those who could not participate.
A special feature of the compilation is that both the video & the hand-outs are synchronised. The proceedings are avalable in
limited numbers and will be made avaialble on First-Come-First-Serve basis.
Those interested in buying the compilation of Workshop proceedings may remit the payment of Rs. 17,500 by DD/Cheque in
favour of Federation of Automobile Dealers Associations payable at Delhi and send their payments to FADA office at New Delhi.

May 2017 20

Attention: FADA Members

No Need for Approval of New Models by State Transport Departments

On FADA’s representation, MoRTH issues clarification

On a representation made by FADA, Ministry of Road Transport & Highways has issued a clarification that if a vehicle model
has already been certified and type-approved by any of the certifying & testing agencies specified under Rule 126 of CMVR,
there is no need for further approval of new models by the respective State Transport Departments for registration.
The Ministry has further clarified that the declaration made by the manufacturer in Form 22 to the effect that the vehicle
complies with the provisions of the Motor Vehicles Act, 1988, and the rules made thereunder, including the mass emission
norms, is sufficient for the purpose of registration of a new model.
The requirement of approval of new Models by the State Transport Departments was not only avoidable waste of time but
also a source of corruption within the Transport Departments. The clarification comes as a big relief for automobile dealers.
The clarification issued by Ministry of Road Transport & Highways is published hereinbelow.

21 May 2017

Competition Law Updates

Ontario Supreme Court The new measures imply that China’s auto dealers will no
slaps second largest fine on longer have to secure authorization from brand owners
Mitsubishi for bid-rigging prior to selling automobiles and that the automakers and
auto suppliers will not restrict dealers’ operations.
Car parts manufacturer In other words, the dealers will be required to clearly
Mitsubishi Electric display products and services prices and not subject
Corporation has pleaded customers to extra, hidden charges. The new measures will
guilty in Canada for bid- make the relationship between market competitors more
rigging. It has been fined equal and will better protect the consumer interests, in
CDN$13.4m by the Ontario turn creating fair competition in the industry.
Superior Court of Justice. Supreme Court stays COMPAT order that imposed penalty
Bid-rigging is also a violation on 3 car companies
under the Indian The Competition Appellate Tribunal (COMPAT) vide its
competition law under order dated 09.12.2016, directed three car companies –
G R Bhatia, Partner & Head, Section 3(3)(d) of the Ford, Toyota and Nissan, to remove all restrictions imposed
Competition Law Practice Group, Competition Act, 2002. through agreements, open additional distribution channels
to open up market for spare parts on a country-wide basis,
Luthra & Luthra Law Office remove all restrictions on supply of spare parts by original
equipment suppliers to authorized dealers etc.
The Canadian competition investigator observed that The three car companies filed appeals along with stay
Mitsubishi Electric entered into illegal agreements with application against the COMPAT’s order before the Hon’ble
Denso, which is a competing Japanese car parts Supreme Court. The Hon’ble Supreme Court, while
manufacturer. The companies conspired to win the bids admitting the appeals and issuing notice, granted stay on
issued by Honda and Ford for the supply of alternators, the operation of the COMPAT order of 09.12.2016. The
and by General Motors for the supply of ignition coils matter was taken up for arguments on 07.04.2017 and the
between 2003 and 2006. Hon’ble Court directed that the interim order shall
continue. The matter has been adjourned.
Stiff sentence for destruction of evidence during anti-trust Recent Supreme Court’s judgment finally decides the
investigation penal powers and scope of CCI
The Supreme Court on May 08, 2017 pronounced a
Futoshi Higashida was an executive at Nishikawa Rubber Judgment upholding an order passed by the Competition
Company in Japan. According to the Department of Appellate Tribunal penalizing three companies for price bid
Justice, Higashida upon learning that other automotive rigging. Hon’ble Supreme Court has held that relevant
parts companies and their employees had been turnover is the base for determining penalty on the
prosecuted for antitrust crimes in the United States, delinquent person/enterprise. The CCI has been
instructed its employees to delete emails, cellular phone consistently following the policy of imposing penalty on
records and other documents discussing competitor the total turnover, which has been found to ‘over deter’
prices. the multiproduct defaulting companies.
The SC in Excel Crop v. CCI, relied on the doctrine of
In doing so, Higashida specifically warned employees that ‘proportionality’ and held that when an agreement involves
the records could be used by the US government as one product, then penalty will be imposed on this one
evidence of antitrust crimes, which could lead to product only. It is yet to be seen if there will be review of
imprisonment and substantial fines. Higashida was this order, until then, it will be the ‘relevant’ turnover and
sentenced in February 2017 for a 14-month prison term not ‘total’ turnover that will be kept in mind by the CCI/
and has been subjected to monetary fines also. COMPAT while determining penalty

New Auto sales management measures to improve
competition, after-sales services

China’s Ministry of Commerce has released new auto sales
management measures that will take effect on July 1, 2017,
thereby replacing the previous 2005 auto sales
management system.

May 2017 22



Know our Member

Dehradun Premier Motors Pvt Ltd, Dehradun

Dehradun Premier Motors, a new Life Member of FADA and The customer relations and setting new benchmarks in
a part of renowned DDPM Group based in Dehradun, is a customer satisfaction has been the focus of DDPM Group
dealership of Mahindra & Mahindra, engaged in the sales, ever since its inception. The dealerships managed by the
service and spares of all Mahindra vehicles. Group have always been rated as among the top dealerships

nationwide. No wonder then, the Group has
witnessed unprecedented growth over the
years.

Dehradun Premier Motors is managed by
the dynamic Harish Suri, Director. He is also
a director in DPM Hyundai (A Unit of Patricia
Holdings Pvt Ltd) and DDPM Automobiles
LLP (VW Dealership).

The DDPM Group has been in the automotive business A Graduate in Civil Engineering and an MBA
for the last 15 years and operates a number of automobile in Marketing, Harish Suri had been a
dealerships in the State of Uttarakhand, including the banker for 20 years with Citibank, before
dealerships of Mahindra & Mahindra (M&M), Mahindra he returned to India to start his own
Trucks & Buses, Hyundai Motor India, Volkswagen India, business 10 years ago. His positions in
General Motors India and Bharat Benz. The Group also Citibank included: Head of Citibank India
manages and runs dealership for sale & service of BOSCH during 1989-199;
products. Regional Director
The Group, having an extensive network of 17 showrooms based out of Hongkong, Singapore and
and 21 workshops across Uttarakhand in Dehradun, Kotdwar, Thailand; and finally as Managing
V ikasnagar, Roorkee, Haridwar, New Tehri, Gyansu, Director (Asia Pacific) based in Tokyo.
Karanprayag, Nagarsu, Chamoli and He has extensive managerial
Srinagar, boasts of the largest experience and thorough
automobile dealerships of Hyundai and understanding of financing and
M&M in Uttarakhand & Western UP. financial management.
The operations and activities of DDPM
Group are supported by a strong, FADA wishes Harish Suri and DDPM Harish Suri
devoted and competent team of 800 Group further success in their quest for
employees comprising managers, excellence and growth
supervisors, technicians and other
support staff.
The Group sold 7,000 vehicles and
clocked 70,000 vehicles for service &
repair, at its various sale & service
outlets, posting a turnover of Rs. 450
crore last year.

May 2017 24



FADA Newsline

FADA Council Meeting, Regional Meeting and Awards Presentation
Ceremony at Jaipur

FADA held its 283rd Council Meeting on 22nd April 2017 at
Jaipur Marriot Hotel. Regional Meeting of Rajasthan dealers
and a ceremony for the presentation of awards to the
stalwarts in auto retail business in the State of Rajasthan
were also dovetailed with the Council Meeting.

Council Meeting

The programme started with the FADA Council Meeting
with John K Paul, President, FADA, in the Chair. Around 19
council members, including two special invitees from the
State of Rajasthan, attended the Council Meeting.

Briefing the members on the activities of FADA and
developments since the previous meeting held on 11th
January 2017, John K Paul informed that continuing FADA’s
endeavours to build and strengthen relations with the
OEMs and the Government, a FADA team comprising six
members held separate meetings with chief executives &
other senior officials of SIAM, Toyota Motor Kirloskar
(TKM), Ford India and Mercedes Benz India on 16th February,
28th February, 1st March and 2nd March 2017, respectively.
The issues discussed were: a) Inventory control at the
dealerships; b) Rationalising the manpower at the
dealerships; c) Manpower training and making Automotive
Skills Development Council (ASDC) more useful for meeting
the manpower requirements of automobile dealers; d)
Need for OEMs regularly sharing actual retail sales data to
obviate inventory build-up and unhealthy practices in the
auto market; d) Scrappage scheme; and e) Exit route for
the automobile dealers.

The FADA team also had an opportunity of meeting Abhay
Damle, Jt Secretary – Transport, Ministry of Road Transport
& Highways, Government of India on 1st March 2017
wherein a gamut of issues, including i) Bringing road tax
under GST regime; ii) Computerisation and networking of
RTOs across the country to ensure the availability of data
of registration of vehicles on real-time basis; iii) Early
implementation of Vahan 4.0 across the country and
delegation of registration of vehicles to automobile dealers;
iv) Uniformity in motor vehicle taxes and registration
procedures throughout India; and v) Vehicle life terminal
policy, were discussed.

President, touching upon the visit of a 36-member
delegation of FADA to USA to participate at the 2017 NADA

May 2017 26

FADA Newsline

Convention during 26th to 29th January 2017 in New Orleans,
said that it was an enriching experience for all the members
of delegation. FADA, with the help of NADA, also arranged
visit to two dealerships in Atlanta, which gave a lot of new
ideas and an insight into the business practices of
automobile dealerships in the US.

Referring to the proceedings in the Supreme Court,
culminating in order dated 29th March 2017, President said
that Bajaj Auto had intervened in the matter in the
Supreme Court, vehemently seeking the ban on sale of
vehicles other than those compliant with BS IV emission
standards, effective from 1st April 2017. The stand taken
by Bajaj Auto was contrary to the letter and spirit of the
notifications issued by the Government of India (Ministry
of Road Transport & Highways, according to which the
designated date of 1st April 2017 for implementation of
BS IV emission standards was with reference to the
manufacture. In other words, according to the
notifications, BSIII vehicles manufactured up to 31st March
2017 could be sold on or after 1st April 2017. This had
been the understanding and practice in the past when
the country migrated to BS II and BS III emission standards.
The automobile dealers were, by and large, left with
substantial inventory of BSIII vehicles, worth over Rs.
12,000 crore, which was unlikely to be liquidated by 31st
March 2017. FADA had, therefore, no choice, but to
intervene in the matter before the Hon’ble Supreme Court
to protect the interest of automobile dealers. The order
of the Supreme Court dated 29th March 2017, contrary to
the expectations of automotive industry and retail trade,
came as a rude shock and resulted in huge loss to the
automobile manufacturers and dealers.

Arising out of the discussion, after the President’s remarks
on the subject, FADA Council felt that there was some
chance that a review petition by FADA seeking limited
relief, say, time of 2-3 months for disposal of unsold
inventory lying with the automobile dealers, might
succeed. Council, accordingly, authorised President and
Vice President of FADA to file the review petition, if
necessary, before the Supreme Court for modification
of the Court’s order dated 29th March 2017, seeking
limited relief of 2-3 months for disposal of the unsold
inventory of BS III vehicles lying with automobile dealers
and/or any other relief that the Supreme Court may
deem appropriate.

Among the other major decisions taken, Council decided
to associate with a new partner, namely, Haymarket India

27 May 2017

FADA Newsline

(publisher of Autocar India and Autocar Professional) for
the Automotive Dealership Excellence Awards (ADEA). The
next ADEA presentation function, in association with
Haymarket India, was proposed to be held in the first week
of August 2017 at Mumbai. A B2B show, if possible, and
the next Council Meeting of FADA would also be timed
with the awards function.

Council also approved, in principle, the formation of FADA
chapters in the cities and towns, where there is no active
association of automobile dealers, subject to fulfilment
of guidelines that may be framed for the functioning and
regulation of such chapters.

Regional Meeting in association with AMVDA,
Rajasthan

Presentation on GST

A presentation on GST by CA Jatin Harjai with Alok Gupta,
Commissioner – Commercial Taxes, Government of
Rajasthan presiding, marked the beginning of Regional
Meeting after lunch, in which around 120 – 150
participants, including members of FADA Council from
various regions, automobile dealers from across the State
of Rajasthan, senior State Government officials,
representatives of allied businesses, and members of the
media, participated. The presentation was followed by
interaction with the participants. CA Harjai pointed out that
the GST is the biggest tax reform since Independence and
a game-changer. It would not only change the way the tax
is paid and administered, but also the way the businesses
are carried out. Implementation of GST would call for
extensive changes in the business processes.

The issues of concern that emerged from the discussion
were: i) Filing of numerous returns under the GST regime
resulting in complexities; ii) Dual control of the Central and
the State Governments in tax administration; iii) payment
of tax at every stage, leading to higher working capital
requirement; iv) the taxabiliy of inter-unit and inter-state
transfers by the same organisation; v) taxable value of used
vehicle sale–input credit for tax paid on minor repair/
refurbishing of the vehicle?; vi) availability of credit only
on matching of invoice and entries in return, etc.

Allaying the fears of automobile dealers, Alok Gupta,
Commissioner – Commercial Taxes, Rajasthan stressed that
the Department would be accommodative and liberal to
start with and the problems, if any, sorted out with sense
of urgency for smooth conduct of the businesses.

May 2017 28

FADA Newsline

Presentation by Facebook

The Regional meeting gave an insight into its growing
importance of digital platform in the business world.
Prasanjeet Dutta Baruah, Head – Auto, Facebook, India and
South Asia and Sudarshan Sarma, Industry Leader – Auto,
Facebook India, through their presentation, highlighted the
increasing penetration of digital media in every walk of life
and its relevance in improving processes, efficiency and
productivity. He impressed upon automobile dealers to
adopt the digital platform and social media in a big way to
stay relevant in today’s fiercely competitive market. The
way to go about would be: a) Hire a digital manager; b)
Create the dealership’s presence in social media, including
Facebook, to target larger potential customer base; c)
Define your audience and customers; and d) Make optimum
use of leads generated through social media for conversion,
he said.

Presentation followed by Interaction with the Principal
Secretary & Transport Commissioner, Rajasthan and his
senior officials

Transport Department, Government of Rajasthan made a
presentation on Vahan 4.0 highlighting the role &
responsibility of the State Transport Department and
automobile dealers for registration of vehicles on Vahan
4.0 platform. The presentation was followed by interaction
with Shailendra Agarwal, Principal Secretary & Transport
Commissioner, Rajasthan; Ms Manisha Arora, Additional
Transport Commissioner; and other officials of the
Transport Department.

Shailendra Agarwal, addressing the audience, said that the
purpose of his participation was to understand the concerns
of automobile dealers and to take immediate remedial
action, wherever, feasible. He responded positively on the
following issues raised at the meeting:

• The delay in issue of smart cards would be addressed
and, if possible, the smart cards would be directly
delivered by the vendor to the dealers without being
routed through Transport Department.

• The action would be taken to print the hypothecation
(HP) in the smart card in hire-purchase cases.

• The suggestion regarding TC for used vehicles sold
through authorised automobile dealerships and
regulation of used vehicle sale-purchase business
would be considered by the Transport Department.

29 May 2017

FADA Newsline

• The suggestion for dispensing with requirement of tax
clearance certificate for registration and affixing of
HSRP would be favourably considered by Transport
Department.

• Regarding delegation of power of registration of
commercial vehicles to dealers, the Transport
Commission informed that the proposal of registration
of small CVs by the dealers, to begin with, is already
under the active consideration of Transport
Department of Rajasthan.

• The suggestion for allowing a 3-day window for deposit
of tax by the dealers relates to the Revenue
Department. However, Transport Department would
support, if any such representation is made by
automobile dealers to the Revenue Department.

• Data on number of vehicles registered within the State
will be available once Vahan 4.0 is implemented in all
RTOs. Currently, only 6 RTOs in the State are on Vahan
4.0 platform and the connectivity problem in other
RTOs is being sorted out for rollout of Vahan 4.0 across
the State.

• Transport Department would actively support the
proposal for creation of auto clusters in the State.

He offered to hold regular meetings with the automobile
dealers to resolve the issues arising from time to time.

Address by Chief Guest - Yunus Khan, Transport & PWD
Minister, Rajasthan

Reiterating the assurances given by the Transport
Department, Chief Guest - Yunus Khan, Transport & PWD
Minister, Government of Rajasthan, exhorted the
automobile dealers to contribute their mite in improving
road safety, including driver training. He also called upon
the automobile dealers to undertake the CSR activities and
join the Government in its efforts to address environment
pollution and other social issues like education and health
care of the people at large.

Earlier, welcoming the Transport & PWD Minister, John K
Paul, President, FADA highlighted the importance of auto
retail business & service industry in the State and national
economies, as also its contribution in revenue collection
and local employment generation, promoting inclusive
growth. Illustrating, he pointed out that while Maruti Suzuki
employs 17,000 persons, 4 top dealerships of the company

May 2017 30

FADA Newsline

together employ more than 20,000 people. He also stressed
on the need for National Transport policy and National
Register of driving licences issued.

President, FADA assured the Minister of automobile dealers’
unstinted support in skill development and setting up Driver
Training centres, jointly with the State Government.

Felicitation and Awards Presentation to Auto
Retail Trade Stalwarts in Rajasthan

On the occasion of Regional Meeting, the doyens of auto
retail trade in the State of Rajasthan were felicitated and
presented with plaques in recognition of their phenomenal
contribution to the growth of automotive business in the
State.

The Hon’ble Minister conferred the Life Time Achievement
Awards on the icons in Rajasthan, who had completed 50
years in auto retail business. The recipients of Life Time
Achievement Awards were: M/s Dayanidhi Kasliwal (Kamal
& Company, Jaipur); and Kishore Singh Gehlot (National
Motors, Jaipur); Prem Sanghi (Sanghi Cars, Jaipur); Kavi
Sharma (P L Motors, Jaipur); C H Shah (Rajesh Motors,
Jaipur); V ikram Singh Gehlot (O S Motors, Jodhpur);
Deshnidhi Kasliwal (Kamal Auto Industries, Kota); Pramod
& Vijay Gupta (Matsya Automobiles, Alwar); P Kumar (Anjita
Bajaj, Ajmer); and Lekh Jagwani (Hindustan Automobiles,
Jaipu);.

The Hon’ble Transport Minister also presented the awards
to other young entrepreneurs and woman entrepreneurs,
who have distinguished themselves in auto retail business
in the State. The young entrepeneurs awardees included:
M/s Ankit Mittal (Sunshine Honda, Jaipur); Hari Om Bhatia
(Bhatia & Co., Kota); Rahul Kumar (R S Motors, Alwar); Ankit
Relan (L S N Automobiles, Ajmer); and Pavendra Singh
(Khushali Motors, Bharatpur). The women entrepreneurs
awardees were: Sonali Tholia (Om Toyota, Jaipur); Seema
Gupta (Rajastan Tractor Machinery, Alwar); Vinita Deora
Gehlot (Deora Hyundai, Jodhpur); and Akshita Morani
(Morani Motors, Jaipur).

Hero dealers and HMSI dealers in the State were presented
with the CSR and the Safery Awards, respectively.

Special awards were bestowed on M/s Roshan Lal Jain
(Udaipur) and Sanjeev Gupta / Sudhir Gupta (Bharat Udyog,
Bharatpur) for their singular work and contribution.

The Regional Meeting concluded with Cultural Evening and
Dinner

31 May 2017



33 May 2017

New on Wheels

BMW M760Li xDrive Debuts in India

The first M performance model for the flagship sedan BMW 7 The Integral Active Steering increases the manoeuvrability,
Series, the new BMW M760Li xDrive was introduced in India agility and comfort. It combines speed-dependent steering
on May 18. transmission and power steering with the benefits of rear-
Available in two character packages - M760Li xDrive and wheel steering. Add to this, the innovative 2-Axle Air
M760Li xDrive Model V12 Excellence, new BMW M760Li Suspension and Dynamic Damper Control improve ride quality
xDrive emphasises the sporty appearance, while the focus of and suspension by stabilizing all irregularities during the
attention in the Model V12 Excellence is more clearly on the driving experience.
luxurious character of the vehicle. The Executive Lounge, which is a standard seating in the BMW
Vikram Pawah, President, BMW Group India said, “Sixth M760Li xDrive offers maximum comfort through a wide range
generation of the exclusive luxury limousine is the most of features like massage function, Vitality Programme and a
powerful BMW ever. BMW M760Li xDrive stands for two footrest. The rear passenger can unwind into an extremely
important directions of our product strategy in India: the relaxing position, thanks to a backrest, which can recline
further expansion of our M portfolio and strengthening our impressively close to the horizontal position.
presence in the upper end of the luxury car market.” The limousine comes with BMW Individual Paintwork and
The BMW M760Li xDrive is available as a petrol variant. The Interior Trims as standard. Other optional features available
Ex-Showroom price is as follows: are BMW Individual ‘Special’ Paintwork, BMW Individual Cool
BMW M760Li xDrive : INR 2,27,00,000 Box, BMW Individual full leather trim ‘Merino’ finely structured
BMW M760Li xDrive Model V12 Excellence : INR 2,27,00,000. Upholstery and BMW Individual Headliner Alcantara.
BMW M760Li xDrive Model V12 Excellence focuses on
The range of fine upholstery combinations in Nappa leather exclusive elegant luxury and a distinct presence with Pure
include: Canberra Beige with Canberra Beige, Canberra Beige Excellence Design features. 20 inch BMW Individual light-alloy
with Canberra Beige and Dark Coffee, Ivory White with Ivory wheels in W spoke 646 design high-gloss polished with mixed-
White, Dark Coffee with Ivory White, Black with Ivory White, size tyres create a dynamic presence. At the front, Model V12
Cognac with Black, Mocha with Black, Zagora Beige with Black, Excellence has a chrome strip in the air inlet grid. The kidney
and Black with Black. grille slats are finished in silver with chrome-plated fronts and
The BMW M760Li xDrive offers innovative functionalities such decorative frame. The window frames, the Air Breather with
as Executive Drive Pro, Integral Active Steering and Executive the decorative door trim and the V12 lettering on the C pillar
Lounge seating as standard. The Executive Drive Pro are also in Light Chrome.
suspension system reduces body roll in bends and on bumpy The M Performance TwinPower Turbo twelve-cylinder 6.6 litre
surfaces. Using the Driving Experience Control switch, the petrol engine produces an output of 448 kW / 610 hp and a
driver is able to choose between different driving modes to maximum torque of 800 Nm at 1,500 – 5,000 rpm. The car
suit the driving conditions (Comfort, Comfort+, Sport, Sport+, accelerates from 0 to 100 km/h in just 3.7 seconds to a top
Eco Pro, and Adaptive). speed of 250 km/hr.

May 2017 34

New on Wheels

New Dzire Launched

The New Dzire sedan, launched by Maruti Suzuki on May 16, New World of Indulgence
looks set to shake up the Indian passenger vehicle market. • All new steering wheel with a flat bottom
Launched in 2008, Dzire has been India’s best-selling sedan • Driver side tilted central instrument console
through most of the last decade, clocking sales of over 1.38 • Urbane satin chrome accentuation on console, gear knob,
million cars so far.
The hugely popular Auto Gear Shift (AGS) technology is now steering and speedometer rings give luxury feel
available on many more variants of the Dzire, starting from • Exterior coordinated signature polygon theme
the V trim up to Z and Z+. In all, six variants of the New Dzire • Rear AC vent and utility spaces.
(in diesel and petrol) now offer the acclaimed AGS technology.
At 28.4 kmpl the new Dzire Diesel is India’s most fuel efficient Safer, Stronger, Rigid & Lightweight
car. The new Dzire petrol has a fuel efficiency of 22.0 kmpl. • Suzuki’s latest HEARTECT platform
Kenichi Ayukawa, MD & CEO, Maruti Suzuki, said: "Dzire was • Use of Ultra High tensile and High tensile steel.
specially created for India, and has been one of the most
popular brands ever in the Indian automobile industry. Now Future Ready in Safety Regulations
we have designed a whole New Dzire for sedan customers, to • Compliant to front offset, side impact and pedestrian
fulfil the growing aspirations of a young and prosperous India."
Built afresh on the fifth generation HEARTECT platform, the regulations ahead of time
new Dzire is able to offer more space, superior safety and • Dual airbags; pre-tensioner force limiter seat belts; and
better fuel-efficiency.
Maruti Suzuki, together with its suppliers, has invested over ABS with EBD as standard fitment
Rs 1,000 crore for the development of the new Dzire. • ISOFIX (child seat restraint system).
Superior Ride & Handling Adoption of New-Gen Tech
A finely tuned and balanced monocoque body offers nimble • Equipped with Smart Play infotainment System
car handling, cornering performance and stability. • Apple CarPlay, Android Auto and Mirror Link for complete

smartphone connectivity.

Ex-Showroom Price
• Petrol Variant: Rs. 5.45 lakh to Rs. 8.41 lakh
• Diesel Variant: Rs. 6.45 lakh to Rs. 8.94 lakh.

Performance & Dimensions Sleek, Aerodynamic & Streamlined
• An authentic sedan: Low and wide stance
Length X Height X Width : 3,995 X 1,515 X 1,735 mm • Rich side body sculpting and wrap around sleek aero
Max Torque : Petrol: 113Nm @4200rpm
: Diesel: 190Nm @2000rpm design
Max Power : Petrol: 61kw @6,000rpm • Inclined and sweeping A-pillar brings elegance
: Diesel: 55kw @4,000rpm • Excellent “Body to Glass Ratio” makes it distinctive
Boot Space : 378 litre • Auto LED projector headlamps with DRL
Wheel Base : 2,450 mm • Precision cut two-tone alloy wheels.
Ground Clearance : 163 mm (Unladen)



New on Wheels

ISUZU Launches ‘mu-X’ Premium SUV in India

Isuzu Motors launched the ISUZU, ‘mu-X’ premium full-size 7- Take on the world
seater SUV in India, on May 11. The mu-X goes from a highway cruiser to an off-roading beast
Speaking at the occasion, Hiroshi Nakagawa, Director of within seconds with the “Shift-on-the-fly 4x4 select dial with
the Board and Managing Executive Officer, Isuzu Motors, low and high range. Featuring a double wishbone front
said, “ISUZU is globally renowned for making tough, reliable suspension, a heavy duty gearbox and a wide track with long
and fuel-efficient vehicles that are known to be engineered wheel base for extra stability, in addition to the front steel
for life. The mu-X embodies these characteristics and will underbody plates for protection, the mu-X has all the muscle
be built at our state-of-the-art manufacturing plant at Sri needed to take on any adventure.
City.” Live fearless
• The mu-X is powered by the 3.0 litre ISUZU Ddi VGS Turbo Equipped with Electronic Stability Control (ESC), Traction
Control System (TCS), 4 Channel 4 Sensor ABS (Anti-lock Brake
Hi-Power engine, which gives a maximum power output System) with EBD (Electronic Brake force Distribution), and
of 130 kW (177 PS) and a maximum torque of 380 Nm sensors that actively monitor driving conditions, these active
with a superior flat torque curve. The mu-X will be safety systems keep the mu-X in full control on every terrain.
available in both 4x2 and 4x4 variants with a 5 speed On the other hand, passive features like dual front airbags,
sequential shift Automatic Transmission. front seat belts with pre-tensioners and load limiters, and 3
• Advanced active safety systems like ESC (Electronic ISOFIX child seat anchorage provide superior protection during
Stability Control), TCS (Traction Control System) and ABS unfavourable conditions.
(Anti-lock Brake System) with EBA (Emergency Brake Feels like home
Assist) and EBD (Electronic Brake force Distribution) along ISUZU mu-X features a twin cockpit design with easily
with a host of passive safety systems provide enhanced accessible controls for both, the driver and the front passenger.
safety under unfavourable driving conditions. In addition to these, the Penta-Link rear suspension provides
• A key aspect of the mu-X is the 3rd row seating, which excellent comfort for all passengers, while the supremely
allows adults comfortable seating with ample leg room spacious cabin features a number of smart storage
and foot-well. Another key aspect is the fully folding compartments.
second row seat with a one-touch fold-and-tumble Stardom for Seven
feature with maximum ingress space. While the mu-X is busy conquering the terrain, the passengers
stay fully entertained in the rear with the roof-mounted 10-
Styled to stand out inch DVD entertainment monitor and great surround sound.
The ISUZU mu-X gets its aggressive demeanour from the Tiger- The driver seat too features 6-way power adjustable control
inspired dynamic and muscular exterior. With its double slat for prolonged comfort even on long road trips
chrome grille, multi-spoke diamond-cut alloy wheels, and two-
tone front and rear bumpers, its dominant road presence
makes it stand out everywhere.

37 May 2017

Upgrades & Variants

Hyundai Introduces New Xcent for India and Global Markets

Hyundai Motor India Ltd (HMIL), the country’s second Quality, Comfort, Style and Premium look. The exterior
largest car manufacturer launched the new Xcent for India projects Progressive design, while interiors echo generous
and global markets on April 20. The car will be available flair of Space & Comfort with Premium and Hi-Tech appeal.
in 6 variants of petrol and 5 variants of diesel. The prices In the front, the Xcent features new Hyundai’s signature
will vary between Rs. 5.38 lakh and Rs. 8.42 lakh, Cascade Design grille with horizontal chrome slats for bold
depending on the variants. and wider stance with premium appeal. The new front
bumper design, with LED DRLs (Daytime Running Lamps)
• All New Xcent boasts of Evolved sedan image with and Fog lamps, offers futuristic styling while the swept
Premium & Hi-Tech appeal back headlamps compliments the front with sporty
styling.
• Powered with New, Bigger, Powerful & Efficient 1.2L
Diesel Engine along with proven 1.2L Petrol Engine The rear of new Xcent offers a completely refreshed and
dynamic look. The vehicle comes with new premium two
• All New Xcent symbolizes Evolved –‘The Stylish Family piece wrap around tail lamps, Dual Tone bumper, along
Sedan’ for Young and Modern Family with aesthetically incorporated sleek reflectors, stylish
Shark Fin Antenna, Pull type Chrome door handles and
• Made in India, Made for the World - Over 2.5 Lakh aerodynamically designed ORVM's with turn indicators,
Happy Customers Worldwide. lending premium and sporty appeal to the car.

Speaking at the global launch, Y K Koo, MD & CEO, HMIL The 1.2L Kappa Dual VTVT Petrol generates 83 PS power
said, “We are very glad to announce the global launch of @ 6,000 RPM and 11.6 KGM torque @ 4,000 RPM,
the All New Xcent for Indian and Global customers. The delivering improved fuel efficiency. The new 1.2L U2 Diesel
fast changing trends and rising customer aspirations has engine is now bigger and more powerful and generates
always been the key driving force at Hyundai. Considering 75 PS power @ 4,000 RPM.
the evolving market dynamics and customer voice, we
keep enhancing our products for customer delight. The The Xcent offers advanced safety with Reinforced Body
New Xcent symbolizes The Stylish Family Sedan for young Structure and features like Dual Airbags (Standard), Anti-
and Modern Indian Family. With over 2.5 lakh cars sold in lock Braking System (ABS), Central Door Lock, Impact
domestic and international markets since 2014, we are sensing Auto Door unlock, Rear Defogger, Reverse Parking
confident that the New Xcent will create a new benchmark Sensors and Rear Parking Camera with display on large 7.0
in its segment offering best Hyundai Experience." Touch Screen. The Fully Automatic Temperature Control,
along with Rear AC vents, further adds to customers’
The new version is designed on 5 Key pillars - Sporty & convenience. 2-year unlimited kilometres warranty, with
Evolved Styling, Superior Performance, Advanced & Hi- lowerst maintenance cost, ensures a complete peace of
Tech Imagery, High on Safety & Convenience and Product mind for the customers.
Confidence. The Made-in-India new Xcent boasts of

May 2017 38

Upgrades & Variants

Sports Editions of Ford Figo and Aspire Introduced

Ford India introduced sharper and spirited ‘Sports Editions’ Leading on Safety & smart technology
of hatchback Figo and compact sedan Aspire on April 17. The Sports Edition cars will feature dual front driver and
Featuring a dozen design and performance enhancements, passenger airbags, along with ABS and EBD as standard, as
the Figo Sports Edition will be available across dealerships (Ex- also MyFord Dock – a first-in-class feature, offering drivers a
Showroom, Delhi) at INR 721,600 (1.5 Diesel Titanium) and unique solution for storing, mounting and charging mobile
INR 631,900 (1.2 Petrol Titanium). The Ford Aspire in Sports phones, MP3 player, and satellite navigation systems, and for
Edition is priced at INR 760,600 (1.5 Diesel Titanium) and INR integrating these devices into the car’s entertainment system.
650,900 (1.2 Petrol Titanium). Sporty, Elegant and Efficient Design
Anurag Mehrotra, MD, Ford India said, “Since their launch, Exterior changes on the two models, include sporty grille, black
both Figo and Aspire have set new benchmarks in the segment inset on headlamp bezel and smart, dynamic graphics on the
– from the maximum airbags-on-offer to lowest cost of service. sides and rear.
The launch of Sports Editions is yet another stride in our Intelligent Interiors
commitment to introduce products that customers want and The sophisticated exterior theme across Sports Edition extends
value and will help us further strengthen our position in the inside with sporty all-black interiors – from inner door handles
segment and industry at large.” to the centre console.
Fun-to-drive spirit Ford Figo Sports Edition seats will don impressive red stitching,
The sporty, trendy update – featuring a tuned suspension, while Aspire Sports Edition’s cabin will feature sophisticated
bigger & wider 15-inch alloy wheels– enhances the fun-to- fog grey stitching. The steering is leather wrapped and uses
drive character of the two popular Ford models. It adds to the contrasting coloured seams.
Figo and Aspire Sports Editions’ sophisticated ride quality. Both the cars will continue to offer unmatched storage with
A rear spoiler has been added to the Figo Sports Edition to 20 unique spaces.
improve aerodynamics for a more refined performance. Thanks to a powerful automatic climate control system and
Both the models are available with a choice of two powertrains featuring the high-efficiency compressor and condenser, the
– 1.2l TiVCT petrol engine, generating a peak power of 88 PS air conditioner can bring the cabin of a vehicle that has been
and fuel efficiency of 18.12 km/l and 1.5l TDCi diesel engine sitting in the hot sun to below 25 degrees in less than 15
that generates class-leading power of 100 PS and fuel minutes, faster than any of its competitors.
efficiency of 24.29 km/l. Colours
The Ford Figo and Aspire Sports Editions will be available in
• Sports Edition features new tuned suspension, with bigger five and seven exciting colours, respectively, ranging across
& wider 15-inch alloy wheels across two popular Ford models Ruby Red, Sparkling Gold, Oxford White, Tuxedo Black, Deep
Impact Blue, Ingot Silver and Smoke Grey.
• Sharp looking exterior across Sports Edition with dual tone
exteriors – roof & ORVMs, bolder sporty grille, black inset 39 May 2017
on headlamp bezel and dynamic graphics on the sides & rear

• New Sports Editions continue to ensure peace of mind with
standard front dual airbags along with ABS, EBD, and EPAS

• Dynamic, modern & efficient design further enhanced with
Sports themed all-black interiors .



Upgrades & Variants

New BMW 330i Rolled Out in India

The new BMW 330i was launched in India in two exclusive guarantee the highest possible efficiency – for maximum
design schemes: Sport Line and M Sport Edition on May 18, performance with lower fuel consumption. It produces an
with Ex-Showroom price of INR 42,40,000 and INR 44,90,000, output of 185 kW / 252 hp and a maximum torque of 350 Nm
respectively. at 1,450 – 4,800 rpm. The car accelerates from 0 -100 km/hr
Vikram Pawah, President, BMW Group India said, “With the in just 5.8 seconds to a top speed of 250 km/hr. The new BMW
launch of the new BMW 330i, we go step further in presenting 330i gives impressive efficiency of 16.05 kmpl on average,
a well-balanced portfolio of the BMW 3 Series. The latest equating to CO2 emissions of 148.27 g/km.
generation engine of the BMW 330i gives a thrilling power The eight-speed Steptronic Sport automatic transmission
delivery and excellent responsiveness, which guarantees sheer performs smooth, almost imperceptible gear shifts and is
driving pleasure on the road. The new BMW 330i will build an available with steering wheel paddle shifters. At any time, in
emotionally rich connection between a sporting driving any gear, the transmission collaborates perfectly with the
experience and unbeatable everyday practicality.” engine, enabling it to develop its full power and efficiency.
The new BMW 330i with Sport Line sets clear visual accents. The new BMW 330i provides unparalleled performance
Its striking design features in high-gloss black reinforce its coupled with cutting-edge safety technologies. BMW’s
sporty look. The boldly designed kidney grille slats in high- exemplary safety provides six air bags, Anti-Lock Braking
gloss black produce an especially athletic effect for the front System (ABS) with brake assist, Dynamic Stability Control (DSC)
end. In the interior, contrasts between black and red express including Dynamic Traction Control (DTC), Cornering Brake
the typical BMW athleticism: sporting chromo scaling at Control (CBC), Side-impact Protection, ISOFIX child seat
console, red contrast stitching on the sport steering wheel mounting, Runflat tyres with reinforced sidewalls, emergency
and a basic decorative trim strip in high-gloss black with coral spare wheel, electronic vehicle immobiliser and crash sensor.
red accentuated strip. As a distinctive feature of the Sport Line, EfficientDynamics doubles the Sheer Driving Pleasure of the
the vehicle key is designed in red decorative trim. new BMW 3 Series with features such as Auto Start-Stop, ECO
In the M Sport package, the passion for dynamism is clearly PRO mode, Brake-Energy Regeneration, Intelligent Lightweight
at the forefront. It is fitted with M aerodynamic package and Construction, Electronic Power Steering, 50:50 Weight
18-inch M star spoke alloy wheels along with M badging on Distribution and many other innovative technologies.
the front wings that further emphasise its dynamic character. New variants come standard with BMW ConnectedDrive
As an exclusive feature, the vehicle key is designed with M features such as iDrive touch controller with handwriting
strip.The interior features an extremely sporty cockpit design recognition and a 22.3 cms colour display, DVD drive and hard
with M leather steering wheel. drive (20GB), BMW Navigation system Professional with 3D
The latest generation BMW TwinPower Turbo petrol engine maps (integrated GPS), BMW Apps, Connectivity through
offers remarkably agile power delivery and excellent Bluetooth and USB/AUX-IN connectivity, Rear View Camera
responsiveness, even at low engine speeds. The 4-cylinder along with Park Distance Control (PDC) Rear (BMW 330i Sport
petrol engines in the BMW 3 Series boast high dynamics and Line) and PDC Rear & Front (BMW 330i M Sport Edition)

41 May 2017

News Basket

General Motors to Stop Selling Cars in India

Aiming to drive stronger financial performance, global auto As GM moved to consolidate Indian manufacturing at its
maker General Motors Company announced on May 18 that Talegaon Assembly Plant, the company ceased manufacturing
it would stop its sales operations in India and focus on exports at its Halol Assembly Plant on April 28, 2017. Negotiations
from the world’s fastest growing passenger vehicle market. continue on the asset sale at Halol.
Kaher Kazem, GM India President and MD, said the focus for
- Talegaon Assembly Plant to remain an export hub the GM India manufacturing base at Talegaon will be export
- Chevrolet domestic sales to cease by the end of 2017 markets, upcoming export vehicle launches and exploring
- Decision follows a comprehensive review of future longer-term strategic options.

product plans
- Support is in place for affected customers, employees,

dealers and suppliers.

The decision, which follows a comprehensive review of future “GM India’s export business has tripled over the past year,”
product plans for GM India, is part of a series of actions taken Kazem said. “Exports will remain our focus going forward as
by General Motors to address the performance of its we continue to leverage India’s strong supply base. We recently
operations worldwide. Through the review, which began in launched the new Chevrolet Beat hatchback for export to
June 2016, the company determined its greatest opportunity Mexico and Central and South American markets and will
in India to drive shareholder return rests on focusing on launch the Chevrolet Beat sedan later this year. We will support
exports from India. our affected customers, employees, dealers and suppliers.”
Stefan Jacoby, GM Executive Vice President and President of Chevrolet owners can be assured that we will continue to
GM International, said, “We explored many options, but honour all warranties and provide comprehensive after-sales
determined the increased investment originally planned for support. The company will work closely with affected
India would not deliver the returns of other significant global customers and dealers on a transition plan. The customer
opportunities. It would also not help us achieve a leadership support centre will remain open and all warranties and service
position or compelling, long-term profitability in the domestic agreements, as well as ongoing service and parts requirements
market. Difficult as it has been to reach this decision, it is the for all vehicles, will continue to be honoured. Th GM customers
right outcome to support our global strategy and deliver can call 1-800-3000-8080, email the company at
appropriate returns for our shareholders.” [email protected] or visit chevrolet.co.in, the company said.
This announcement is consistent with GM’s global disciplined GM India also informed employees of the decision.
allocation of capital and investment in its business around the The GM Technical Centre-India (GMTC-I) in Bengaluru, which
world designed to generate stronger returns and drive performs global work, is not impacted by this announcement.
shareholder value.
“Our decision in India is an important milestone in
strengthening the performance of our GM International
operations and establishing GM as a more focused and
disciplined company,” said Jacoby.

Indian Automaker Mahindra Pulls Plug on Electric Car Sales in UK

Mahindra & Mahindra has stopped selling its electric car in the investment required, hence our decision to cease trading
the United Kingdom due to meagre sales and is winding up at Mahindra UK with immediate effect and retract from the
operations there, in a setback for the Indian automaker's UK marketplace," Mahindra said in an April letter addressed
global ambitions. Mahindra's exit from the UK comes less than to one of its buyers in the country. "The Indian EV market is
a year after it launched the e2o car in a market it considered poised for a take-off and given that scenario, we are primarily
a launch-pad for selling electric cars in Europe, especially to focusing on the Indian market," said a Mahindra spokesman,
countries like Norway, Sweden and the Netherlands. "The level in response to a Reuters query for comment. "We'll reconsider
of e2o sales achieved is at an untenable level for us to maintain the UK market at an opportune time."

May 2017 42

News Basket

Eicher Trucks and Buses Launches Pro 5000 Series

Eicher Trucks & Buses, a part of VE Commercial Vehicles Ltd, Commenting on the launch Vinod Aggarwal, MD & CEO, VE
launched Eicher Pro 5000 series - a brand new range of heavy Commercial Vehicles said, “With the launch of Pro 5000 series
duty trucks from 16T to 40T with BSIV technology, on April 25 of Heavy Duty (HD) trucks, Eicher today has the widest range
in Mumbai. With the launch of this advanced technology of HD trucks at various price points to deliver a superior value
trucks range at competitive prices, Eicher Trucks and Buses and suit the needs of all application segments of customers in
plans to strengthen its presence in the heavy duty segment basic, value and premium category of trucks. These trucks with
with the aim of driving modernization in the commercial new BS IV technology engines are based on i3-EGR technology
transportation. that is innovative, contemporary and efficient. The new E694
engine also includes advanced features based on Volvo Group’s
Eicher Pro 5000 Series – HAR CHALLENGE KE LIYE READY Engine Management system EMS 3.0 and offers first-in-the-
• Pro 5000 Series - All new range of heavy duty rigid industry features like fuel coaching and cruise control at a
competitive price. HD trucks segment continues to be the
haulage trucks, tractors and tippers from 16T to 40T biggest potential area of growth for us and the launch of Eicher
GVW with BSIV technology. Pro 5000 series will enable us to further enhance our market
• Designed & developed to deliver unmatched reliability share in the segment.”
and optimized operational cost. Further commenting on the aftermarket support solutions
• Tough & robust aggregates to the customers, Aggarwal added, “Eicher offers innovative
• Engine: E694 engine with the intelligent i3 EGR and customized service solutions to partner the individual
technology with new generation Volvo Group’s Engine customer needs throughout vehicle life cycle from purchase
Management System - EMS 3.0 to maintenance to resale. Our unique offerings like Dial-a-
• Best-in-Class Fuel Efficiency Part and GPS enabled mobile service vans leverage the
• IDIS-Intelligent Driver Information Systems with Fuel technology to ensure quick response and maximum uptime
Coaching and Cruise Control for our customers. Apart from these services, there are a
• EPS – Equipped with Engine Protection System to lot of innovative solutions like “Eicher Freedom – AMC
ensure a longer engine life Package”, “Eicher Sure – Used Trucks Business ”, and most
• Supported by Lifetime Support Solutions importantly “Eicher Promise – to put the vehicle back on
• Widest range of products to suit the needs of all types road in time” to ensure highest level of productivity for
of customer segments in basic, value and premium our customers, leading to better profitability and prosperity
for them.”
Eicher Pro 5000 series is a new range of highly durable BSIV Eicher Pro 5000 series will be available across all major markets
trucks designed and developed to deliver unmatched reliability of VECV. These trucks are loaded with features that make it
through highly efficient E694 engine with i3 EGR technology ready to take on the harsh challenges of today’s trucking
from Volvo Group’s EMS 3.0, tough and robust aggregates and business and coupled with cost effective operations, these will
Intelligent Driver Information System. These trucks are meet the aspirations of ambitious fleet owners.
designed to deliver best-in class fuel efficiency and optimized With an unmatched combination of key product advantages
operational cost, leading to quick returns on investment. and innovative lifetime support solutions, Eicher Pro 5000
Series is HAR CHALLENGE KE LIYE READY.

43 May 2017

News Basket

Tata Motors Launches AMT Buses

Taking a step further in developing comfortable mass buses with WABCO, we will continue to work with partners
transportation solutions, Tata Motors, on April 19, launched like them to develop and introduce products with best-in-class
AMT technology (Automated Manual Transmission) in its value proposition, delivering world-class solutions for the
Starbus and Ultra brand of buses, ranging from 9m to 12m, Indian customer.”
priced at Rs 21 lakh (Ex-Showroom New Delhi) onwards. Dr Ajit Kumar Jindal, Head Engineering, Commercial Vehicles,
Developed especially for city applications with heavy traffic, Tata Motors said, “At Tata Motors, we constantly engage with
Tata Motors BS IV compliant AMT buses are available in our stakeholders to develop and integrate new and future-
multiple variants, for diverse applications. ready technologies for our broad spectrum of commercial
Tata AMT buses come with Manual and Automatic with vehicles, that enhances connectivity, safety and fuel
economy and power modes. In power mode, the Automatic economy.”
Gear Detection (AGD) ensures sufficient engine torque “With rapid urbanization and environmental concerns, there
capability to maintain agility and drivability even in case of is an increasing focus towards efficient public transportation.
demanding duty cycles, while the economy mode ensures As the cities get congested, especially during peak hours, the
optimal fuel consumption. The AMT technology of the bus average speed of the vehicle is drastically reduced with
coupled with a powerful new generation engine, automatically frequent start stop, causing delays, discomfort for passengers
engages the vehicle’s clutch and shifts the gear. It also considers and drivers and more so cuts down on the fuel economy of
the driver’s operation, engine torque, vehicle load and road the vehicle. The new AMT buses from Tata Motors will address
inclination, resulting in optimized gear shifting and hassle-free these issues, also bringing down the TCO.”
driving experience.
Speaking on the occasion, Ravi Pisharody, Executive Director
- Commercial Vehicles, Tata Motors said, “Tata Motors has
always led the transformation in the Indian Commercial
Vehicle Industry with the introduction of innovative new
products and services and the launch of our range of AMT
buses is yet another example of how best we understand our
customers. Having developed the AMT technology for our

Volvo Cars Announces ‘Make in India’ Plans

First assembled cars to roll out this year

Volvo Cars, the premium carmaker, announced on May 18 that Volvos that are Made in India,” said Håkan Samuelsson,
it will start vehicle assembly operations in India in 2017. This President and CEO of Volvo Cars. “Starting vehicle assembly
positions the company for further growth in the fast-expanding in India is an important step for Volvo Cars as we aim to grow
premium car segment in India. our sales in this fast-growing market and double our market
The assembly operations will be located near Bengaluru in share in the luxury segment in coming years.”
southern India and focus on models based on Volvo’s SPA Volvo’s decision to start assembly in India and market its
modular vehicle architecture. The first Volvo model to be vehicles as ‘Made in India’ fits well with a similarly named
assembled there is the XC90 premium SUV. Additional models initiative launched by the national government several years
slated for local assembly will be announced at a later stage. ago, which seeks to highlight and promote Indian
In establishing its assembly operations, Volvo Cars is working manufacturing prowess.
together with Volvo Group India - the truck, bus, construction While the Indian luxury market is still relatively small, it is
equipment and Penta engines manufacturer, and will make forecast to grow rapidly in coming years. Volvo currently has
use of Volvo Group India’s existing infrastructure and a premium segment share of close to 5 per cent and aims to
production licences near Bengaluru. No further contract and double this by 2020. Volvo Cars in India have had a robust
financial details will be disclosed. 32% growth in sales volumes in the past 2 years and the 2017
“I am pleased that as of this year we will be able to start selling trend is as per our plan to achieve 2000 cars, this will give the
company a growth of 25% year-on-year

May 2017 44

Consumer Case Studies

National Consumer Disputes Redressal Commission, New Delhi

D K Jain, President and Mrs Shreesha, Member

M/s Fauzdar Motors - Petitioner

Versus

M L Sen and Anr – Respondents

Revision Petition No. 1663 of 2016 Decided on 07.03.2017

(Against the Order in Appeal No. 259/2010 dated 07.01.2016 of the State Commission Madhya Pradesh)

Consumer Protection Act, 1986 – Sections 15, 17, 19 and 21 - Automobiles – Unfair Trade Practice and deficiency in service
on part of Petitioner in selling an old car to Complainant as a new vehicle – In Support of his case, Complainant had brought
on record a challan showing sale of same vehicle to another customer who had also obtained an insurance policy in respect
of same very vehicle – Both Fora have rejected stand of Petitioner that said customer had obtained Insurance cover for a
period of one month as she wanted to take out car for test drive after paying a sum of Rs. 40,000 as part payment for
vehicle – No jurisdictional error in impugned order warranting our interference in Revisional Jurisdiction – Additionally,
present Revision Petition is also barred by limitation inasmuch as there is delay of 41 days in filing the same for which no
satisfactory explanation has been furnished – Revision Petition Dismissed.

Important Point

Sale of an old car as a new vehicle amounts to unfair trade practice and deficiency in service.

Order

1. D K Jain, President - Aggrieved by the order dated 7.3.2008, who had also obtained an insurance policy in
7.1.2016, passed by the MP State Consumer Disputes
Redressal Commission (for short “the State Commission”) respect of the same very vehicle on 7.3.2008 after paying

in First Appeal No.259 of 2010, Fauzdar Motors, an the requisite premium amount. For arriving at the conclusion

authorized dealer of Tata Motors, has filed this Revision that the aforestated allegation of the Complainant stood
proved, both the Fora below have relied upon the said
Petition, under Section 21(b) of the CPA, 1986 (for short
“the Act”). By the impugned order, the State Commission documentary evidence. Both the Forums have rejected

has affirmed the order, dated 18.12.2009, passed by the the stand of the Petitioner that the said customer had
obtained the Insurance cover for a period of one month,
District Consumer Disputes Redressal Forum, Rewa (for
short “the District Forum”) in CC No.374 of 2008. By the as she wanted to take out the car for test drive, after

said order, the District Forum, while allowing the paying a sum of Rs. 40,000 as part payment for the vehicle.
complaint filed by the Complainant, Respondent No.1
herein, alleging unfair trade practice and deficiency in 3. The said finding, being based on cogent evidence, and
service on the part of the Petitioner, in selling an old Tata not challenged as being perverse on any ground,
Indica car to the Complainant as a new vehicle, the District whatsoever, we do not find any jurisdictional error in the
Forum had directed the Petitioner to pay to the impugned order warranting our interference in the
Complainant a sum of Rs. 1,00,000 as compensation for Revisional Jurisdiction. Additionally, the present Revision
the mental agony suffered by him, with the default Petition is also barred by limitation inasmuch as there is
stipulation of payment of interest at the rate of 10% p.a. a delay of 41 days in filing the same, for which no
satisfactory explanation has been furnished.

on the said amount, if the same is not paid within 30 4. In view of the above, the Revision Petition fails and is
days of the date of the said order. dismissed on the ground of limitation as well as on merits,

2. As noted above, the short controversy before the lower with costs, quantified at Rs. 10,000. The amount due in

Fora was whether the Petitioner had sold an old vehicle terms of the impugned order along with the costs shall be
paid by the Petitioner to the Complainant within four weeks
to the Complainant as a new one for a sale consideration
of Rs. 4,25,300. In support of his case, the Complainant from the date of receipt of a copy of this order, failing which

had brought on record a challan showing sale of the same the said amount shall carry further interest @ 10% p.a.
from the date of this order till actual realization
vehicle to another customer, namely Meena Kwatra on

45 May 2017

Surveys & Studies

TVS Tops in J D Power 2-W Customer Satisfaction Survey

When service dealers effectively communicate with facility (19%); and service initiation (18%). Overall customer
customers at key junctures while servicing a two-wheeler satisfaction is measured on a 1,000-point scale.
at an original equipment (OE)-authorized service center, Satisfaction with the service experience is driven by process
overall customer satisfaction notably improves, according and communication. The industry performs strongly on
to the J D Power 2017 India Two-Wheeler Customer Service executing process-based activities, with 70% of customers
Index (2WCSI) Study, released on April 27. saying their service center performed five or more of the
“While the process-related customer interactions start and six process standards. But only one in three (36%) say the
end at the service facility, the communication process starts center delivered on 10 or more of the 12 communication
long before a service is scheduled and lasts long after the standards during their last service visit.
work has been completed,” said Kaustav Roy, director at J The study finds that among these two types of activities,
D Power, Singapore. “Improved execution of communication communication standards provide greater opportunities for
standards is crucial not only to improving service improving customer satisfaction. The 36% of customers who
satisfaction, but also to the dealer and manufacturer to note having received 10 or more communication standards
benefit from increased customer loyalty and advocacy.” are more satisfied (810) than those who received five or
The study, now in its second year, measures customer more process standards (774).
satisfaction with the after-sales service experience at OE- Customer satisfaction also can be improved by offering
authorized service centers during the first 12-24 months facilities that aid in improving customer convenience when
of ownership. The study measures overall satisfaction in scheduling and executing a service visit. The 14% of
five factors (listed in order of importance): vehicle pick-up customers who were offered vehicle pick/drop at or from
(22%); service advisor (21%); service quality (20%); service their home/office (14%) are more highly satisfied than
those who were not (774 vs 741, respectively).
“Service dealers are increasingly offering more customer-
centric benefits such as pick/drop, the ability to pre-
schedule a service visit through an appointment and
express service,” said Rajat Agarwal, two-wheeler industry
expert at J D Power, Singapore. “Owners recognize the
benefits of these services and appreciate the actions that
dealers and manufacturers are taking to provide for a more
convenient and satisfying service experience.”

Following are key findings of the 2017 study:
• Room to improve with convenience: Among the five

study factors, satisfaction is highest in service facility
(753) and lowest in vehicle pick-up (737).

May 2017 46

Surveys & Studies

• Schedule the service: Satisfaction is higher among customers say they “definitely would” recommend
customers who schedule their service (26%) than their two-wheeler make to friends and family,
among those who drop by the service dealer without compared with only 32% of highly dissatisfied
an appointment (762 vs 740, respectively). customers.

• Customers like express service option: Satisfaction Study Rankings
is higher among customers who were offered express
service (21%) than among those were not (773 vs TVS ranks highest in customer satisfaction with a score
738, respectively). of 782, performing particularly well in all five factors.
Honda ranks second with a score of 749. Overall
• Higher satisfaction drives loyalty and advocacy: customer satisfaction with two-wheeler after-sales
Highly satisfied customers are more likely to revisit service is 746. In the two-wheeler segments, the
an authorized service dealer even after the warranty customer satisfaction index (CSI) score averages 750 for
period expires. Nearly thrice as many highly satisfied scooters and 744 for motorcycles.
customers (overall satisfaction scores of 859 and
higher) say they “definitely would” revisit the service The 2017 India 2WCSI Study is based on evaluations from
dealer for post-warranty service (70%), compared 7,310 two-wheeler owners in 45 cities across India. These
with only 22% of highly dissatisfied customers owners purchased a new two-wheeler between
(scores of 656 and lower). Additionally, service November 2014 and March 2016 and had a service
experience was also found to have an effect on brand experience within three months of evaluation. The study
advocacy. Nearly four-fifths (79%) of highly satisfied was fielded from November 2016 to March 2017

MAURYA MOTORS LIMITED

Tata Authorised Dealer for Passenger & Commercial Vehicles

Plot No. C-1, Industrial Area
Patliputra

Patna - 800 013

Phones: 92636 32685 / 92636 39260 / 92346 66948
E-mail: [email protected]
[email protected]

47 May 2017

Winning in Mobility Comes Down to a Few
Crucial Moments

Isabelle Rio-Lopes, Global Mobility Expert and Head of Automotive, Kantar TNS, Brazil

The car has long symbolised and facilitated personal liberation. What smart phones can teach the auto industry?
But now, congestion, connectivity and climate concerns are
denting the popularity of the four-wheeled freedom machine. The best mobility solutions are those which address needs at
Frustratingly slow-moving traffic and increasing access the precise moment they are required. That means having
restrictions are contributing to drivers rethinking their usage, almost instant access to a variety of transportation modes that
particularly in urban environments. In Singapore, São Paulo, will efficiently take them from A to B in the most effective and
London and Los Angeles drivers are exploring faster or more most responsible way. That mindset means virtually every
convenient alternatives, sometimes even giving up on cars journey is unique, with an almost infinite number of
completely. Pessimists would say it’s a daunting scenario for permutations. Car brands need to factor themselves into as
auto brands and one that is compelling the most progressive many of these journey choices as possible leveraging the
players in the market to rethink their role in the world. possibilities of mobility service apps like the FordPass or
Daimler’s Moovel. Just as the smart phone integrated lots of
The reality is more complex and we should not forget services and made them instantly available at our fingertips,
pleasurable driving moments that enhance the emotional smart mobility should focus its revolution through intelligent
attachment many drivers still have with their car. To secure a integration.
role in the mobility landscape of tomorrow, auto brands need
to coexist within the increasingly fluid connectivity and sharing People are increasingly using multiple modes of transport,
environment. They must seize the moment to position depending on the purpose and destination, so the road ahead
themselves as a strong link in the transportation chain. And for mobility cannot be mapped out by one industry alone.
they should remember the importance of understanding The environment in which auto manufacturers, airlines, rail
consumer needs to ensure that the final product appeals networks and public transport providers operate will be
strongly to the target audience. shaped by one another, as well as by policymakers, town
planners, environmental campaigners and NGOs. No view of
Get together or get left behind the future can be complete unless it incorporates insights from
each of these groups. New business models will be required
The most visionary are already doing it, by exploring smarter that encourage partnerships, foster joined up thinking and
ways to stay relevant at crucial moments. One way is by create opportunities for innovative collaboration. This has
partnering with other mobility players to offer innovative car already happened to some extent with OEM car-sharing
sharing services. Daimler’s initiative with Car2Go, BMW’s initiatives, but it’s only the tip of the iceberg. Sustainable
DriveNow or BAIC’s GreenGo are great examples of forward- success is about delivering the fastest, shortest, most
focused auto brands. We’ve also seen others investing in e- affordable route, and at the same time offering a smooth,
hailing and P2P car-sharing such as GM with Lyft, Toyota with seamless and comfortable journey. Privately-owned cars tend
Uber and Mercedes Benz’s acquisition of Flightcar. Ford have to tick the ‘comfort’ box better as maintenance of shared cars
gone a step further and created a separate entity - Ford Smart can be an issue.
Mobility - designed to develop mobility services and invest in
promising mobility-related ventures, collaborating with start- To remain relevant in managing seamless functionality, auto
ups and tech companies. Working together seems to be an brands must work out how to be a credible option at the
expedient strategy right now, and not just with car-centric crucial moment journey choices are made. This means the
partners. Auto brands, public transport networks and smarter conversation is about usage, while still leveraging the
technology innovators need to collaborate, integrate and brand assets that make people love and own a symbol of
evolve. Consumers tell us that seamless interconnectivity freedom. Integration, not domination is the most intelligent
between all these mobility choices is critical. strategy, at the moment at least

May 2017 48

PASSENGER VEHICLE SALES - APRIL 2017

Domestic Sales Apr-17 Apr-16 Growth Y-o-Y (%) Exports Apr-17 Apr-16 Growth Y-o-Y (%)
0 3-
OEM 292 486 -39.92 OEM
119 Force Motors 17,531
Fiat India 7,618 180 -33.89 Ford India 7,667 9,939 76.39
Force Motors 883 General Motors 438
Ford India 6,531 16.64 Honda Cars 5,537 38.47
General Motors 70 Hyundai Motor 11,610
HM Finance Corp 14,480 2,063 -57.20 Mahindra 505
Honda Cars 44,758 Maruti Suzuki
Hyundai Motor 60 16.67 Nissan Motor 6,687 478 -8.37
Isuzu Motors 139 Renault India 6,299
Mahindra 19,325 10,486 38.09 Tata Motors 1,066 12,069 -3.80
Maruti Suzuki 144,081 Toyota Kirloskar
Nissan Motor 42,351 5.68 Volkswagen 97
Renault India 4,217 Total 1,121
Skoda Auto 9,545 37 275.68 7,666 557 -9.34
Tata Motors 1,372 60,687
Toyota Kirloskar 14,066 22,655 -14.70 9,469 -29.38
Volkswagen 12,964
Total 3,673 117,045 23.10 6,271 0.45
277,602
3,028 39.27

12,426 -23.19 113 843.36

914 50.11 349 -72.21

12,230 15.01 982 14.15

8,529 52.00

3,039 20.86 7,868 -2.57

242,060 14.68 53,635 13.15

Domestic Sales + Exports

OEM Apr-17 Apr-16 Growth Y-o-Y (%)

Fiat India 292 486 -39.92 Segment wise (Domestic Sales + Exports)
Force Motors 119 183 -34.97
Ford India 25,149 16,470 52.70 Category Apr-17 Apr-16 Growth Y-o-Y (%)
General Motors 8,550 7,600 12.50
HM Finance Corp 16.67 Cars 238,096 206,308 15.41
Honda Cars 70 60 36.06
Hyundai Motor 14,918 10,964 UVs 83,999 71,878 16.86
Isuzu Motors 56,368 54,420 3.58
Mahindra 275.68 Vans 16,194 17,509 -7.51
Maruti Suzuki 139 37 -14.57
Nissan Motor 19,830 23,212 19.17
Renault India 150,768 126,514 13.09
Skoda Auto 10,516 -15.38
Tata Motors 10,611 9,299 50.11
Toyota Kirloskar 12,539 12.59
Volkswagen 1,372 48.09
14,163 914
14,085 12,579 3.96
11,339 9,511
10,907 14.40
Total 338,289 Total 338,289 295,695 14.40
295,695 Source: SIAM

49 May 2017

TWO-WHEELER SALES - APRIL 2017

Domestic Sales Exports

OEM Apr-17 Apr-16 Growth Y-o-Y (%) OEM Apr-17 Apr-16 Growth Y-o-Y (%)
Bajaj Auto 161,930
H-D Motor 200,433 -19.21 Bajaj Auto 132,002 91,465 44.32
Hero MotoCorp 355
HMSI 585,655 418 -15.07 H-D Motor 600 528 13.64
India Kawasaki 551,732 600,525 -2.48 Hero MotoCorp 9,963
India Yamaha 414,035 33.26 HMSI 27,045 12,214 -18.43
Mahindra 2W 59 -49.14 India Yamaha 15,244
Piaggio 68,827 116 7.64 17,040 58.71
Royal Enfield 63,942
Suzuki 856 11,774 29.47
Triumph 4,811
TVS Motor 58,564 8,115 -89.45 Mahindra 2W 1,640 1,167 40.53
36,306
Total 2,533 89.93 Piaggio 560 160 250.00
179 47,037 24.51 Royal Enfield 1,578
205,522 25,358 43.17 Suzuki 7,535 1,160 36.03
72.12 TVS Motor 35,485
104 5,290 42.44
197,692 3.96
24,658 43.91

1,674,796 1,560,308 7.34 Total 231,652 165,456 40.01

Domestic Sales + Exports

OEM Apr-17 Apr-16 Growth Y-o-Y (%)

Bajaj Auto 293,932 291,898 0.70

H-D Motor 955 946 0.95

Hero MotoCorp 595,618 612,739 -2.79

HMSI 578,777 431,075 34.26

India Kawasaki 59 116 -49.14

India Yamaha 84,071 75,716 11.03

Mahindra 2W 2,496 9,282 -73.11 Segment wise (Domestic Sales + Exports)

Piaggio 5,371 2,693 99.44 Category Apr-17 Apr-16 Growth Y-o-Y (%)
Scooters/ 607,055
Royal Enfield 60,142 48,197 24.78 Scooterettes 483,853 25.46

Suzuki 43,841 30,648 43.05 Motorcycles/ 1,239,719 1,173,393 5.65
Step-Through
Triumph 179 104 72.12

TVS Motor 241,007 222,350 8.39 Mopeds 59,674 68,518 -12.91

Total 1,906,448 1,725,764 10.47 Total 1,906,448 1,725,764 10.47
Source: SIAM

May 2017 50