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Published by FADA Journal, 2018-10-31 02:13:24

F A D A Journal - October 2018

October 2018 issue of F A D A Journal

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

fada 5, President’s Message

Journal New Opportunities and New
Challenges Need a Fresh Approach
Insights from the Automobile Retail Industry
At F A D A, Unity and Recognition will be our Partners
in Profitable Growth

10, India Economics

Muted CPI Inflation | IIP Decelerates |
Trade Deficit at 5-Month Low

36, New Unveils

Mercedes Launches AMG G 63

16, Digital Technology 12, F A D A News

President Vice President Hony. Secretary Hony. Treasurer Int’l Director

Staying Ahead as Change of Guard at F A D A -
Auto Finance Goes Digital Mr John K Paul Handsover the Baton to Mr Ashish Harsharaj Kale

46, Post-Event Report 30, The Zero Hour

5-6 October 2018 Exclusive Interview
at Radisson Blu, Nagpur
with Gen-Next

Arjun Pawar

Director, Ratnapprabbha Motors, Aurangabad



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

October 2018 | Vol. 18 | Issue: VII Jfoaurdnaal 5, President’s Message President’s Message

5 President’s Message Insights from the Automobile Retail Industry New Opportunities and New New Opportunities and New Challenges
Challenges Need a Fresh Approach Need a Fresh Approach
New Opportuni es and New Challenges Need a Fresh Approach
At F A D A, Unity and Recognition will be our Partners
7 Industry Track in Profitable Growth

A Not So Fes ve Season for the Auto Market 10, India Economics

10 India Economics Muted CPI Inflation | IIP Decelerates |
Trade Deficit at 5-Month Low
CPI Infla on Remains Muted | IIP Decelerates on a Higher Base | Trade Deficit at 5-Month Low
36, New Unveils
12 F A D A News
Mercedes Launches AMG G 63
Change of Guard at F A D A - Mr John K Paul Handsover the Baton to Mr Ashish Harsharaj Kale
16, Digital Technology 12, F A D A News
16 Digital Technology
President Vice President Hony. Secretary Hony. Treasurer Int’l Director At F A D A, Unity and Recognition will be
Staying Ahead as Auto Finance Goes Digital our Partners in Profitable Growth

20 Membership Staying Ahead as Change of Guard at F A D A - We recognize that the Hybrid Vehicles, along with Our Community operates as a
Auto Finance Goes Digital Mr John K Paul Handsover the Baton to Mr Ashish Harsharaj Kale Dealership Cost Structures Autonomous and Shared retailer, small scale industry,
We Welcome Our New Members have changed upwards Mobility will bring its own Set of service provider, financial and
46, Post-Event Report 30, The Zero Hour dras cally in the past few years challenges in the Future and insurance consultants as well as
22 Perspective and profitability and viability is will need Major realignments of suppor ng the Government on
5-6 October 2018 Exclusive Interview Dear Friends, a very big challenge for the the Dealership Business, a daily basis in implementa on
Standing Up India’s Ecosystem - Who Will Drive the Change? at Radisson Blu, Nagpur en re community irrespec ve especially on the Service Side. of rules and regula ons of the
with Gen-Next This being my first President’s of the OEM you represent or Central Motor Vehicle Acts. We
28 Consumer Case Study Message, I take the opportunity the ver cal you are in. As a Community we need to be are also one of the highest tax
Arjun Pawar to thank the F A D A Council, our Engaged with each other and collectors and contributors to
30 The Zero Hour Past Presidents and each one of Along with my Team I will with other Stake Holders of the the Na on’s exchequer.
Director, Ratnapprabbha Motors, Aurangabad you, who have shown immense definitely ensure that this is Auto Eco System to
An exclusive interview with Arjun Pawar, Director, Ratnapprabbha Motors, Aurangabad confidence and have elected correctly highlighted, and we Understand, Adapt and Adopt We are probably the only
Printed and Published by Saharsh Damani on behalf of Federa on of me as your New President. will engage and discuss with all to these Fast-Paced Changes to business community in the
34 News Basket Automobile Dealers Associa ons, 805, Surya Kiran, 19, K G Marg, New the Stake Holders of our Eco- Our Business. Country, which is governed by
Delhi-110001. I feel honored to take charge of system and work towards a all rules and regula ons which
Maru Suzuki Flags-Off Electric Vehicles for Field Tes ng this pres gious organiza on, Profitable Business Model, one F A D A will ensure that we are applicable to a trader, an
Printed at Sita Fine Arts P Ltd, A-16, Naraina Indl Area - II, New Delhi especially at a me when the which will help us grow and create Many Pla orms where industrialist and to the service
36 New Unveils Auto Industry is at a cusp of encash the Opportuni es all of us can engage and Work industry and hence face issues
Editor: Saharsh Damani facing mul ple disrup ons both ahead. Towards Be er Connec vity which require redressal on
Mercedes-Benz India Launches the Iconic Performance Off-Roader - AMG G 63 inside out and outside in. Along amongst all our Members. mul ple fronts.
Advertisers’ Index 06 with Disrup ons and Challenges Along with the Viability
38 Upgrades 33 I also see a Huge Growth Challenges, our business has In the Recent Past, we have All of us in the Execu ve
21North 41 Opportunity for Us as Our also become very Dynamic and been able to Effec vely Engage Commi ee and the Governing
Ford India Introduces New Aspire Ashok Leyland 35 Na on Heads Towards we cannot afford to be and Ensure Recogni on with Council at F A D A, will work
Tata Motors Launches the New Tigor Automotive Manufacturers 45 becoming One of the Top 3 Auto cocooned in Todays Times. the Central Government for towards making our
Bagga Link 29 Markets in the World. Along There will be New Regula ons variety of Issues and have had community strong & future
40 Chart of the Month Mahindra Truck & Bus 19 with my team and under the and Policies as India prepares Reasonable Success. Along with ready and in doing so, con nue
Marikar Group 43 guidance of my Seniors, I plan to itself to be a Global Leader. the Centre, the roots of to be an important contributor
42 CSR Activity Maurya Motors 37 WorkkeepingUnity&Recogni on recogni on as One Na on | in the Na on Building process.
Popular Vehicles & Services 03 as the central theme to take F A Customer Expecta ons and One Associa on needs to be We seek your support as we
RADA Extends Coopera on to Cancer Pa ents PNB Housing Finance 53 D A to the next level, during my Behavioral Trends are Changing deeply engraved at State and at start our tenure and work
Provincial Group 02 tenure as your President. as consumerism and digital every stakeholder level. We towards fulfilling the
44 Opinion Shri Ram Transport Finance 59 ease spreads to the rural most have to make sure that all the expecta ons and aspira ons of
Tata Capital Financial Services 09 Unity is a simple word yet so corners, Manpower is a stakeholders of the Industry all our members.
Tractors to Post Healthy Growth for Third Consecu ve Year Though Tata Motors 60 difficult to prac ce, but when challenge as new job avenues recognize that as a community,
Deficit Monsoon Could Be A Dampener: ICRA United Group of Institutions we face a crisis, we realize the open up with the growing we are 15,000+ dealerships, Help us build F A D A, which is
VE Commercial Vehicles power of being together. This is Economy. Skilling will also be opera ng from 25,000+ set-ups Your Associa on into a Stronger
46 Post-Event Report something which we as an another Challenge with the and employ a direct workforce Associa on for the be erment
Editor, F A D A Journal and CEO, F A D A Associa on have witnessed Newer Technologies being of 2.5 Mn with indirect of all in Auto Retail.
F A D A’s AGM, Council Mee ng and Auto Retail Conclave held on 5-6 October 2018 mul ple mes during the recent introduced. employment to another 2.5
Mr Saharsh Damani past where we chose to s ck Mn. We are a huge community. Wishing you a very happy and
54 Competition Law Updates T +91-11-6630 4852, 2332 0093, 2332 0095 together and face issues, head- Working Capital needs having We are also one of the highest prosperous fes ve season,
E [email protected] on leading to favorable results. gone up post GST will need employment generators of our
55 Statistics Our Strength lies in the Unity of further inputs as we advance Country and are providing it With best wishes,
Of ice Bearers Vice President Our Pack and going forward, we towards New Technology and without displacing people from
Vehicle Sales, Y-o-Y Growth & Market Share - September 2018 Mr Vinkesh Gulati need to strengthen it further to Higher Compe ve their home loca ons. Ashish Harsharaj Kale
President E [email protected] brace bigger challenges. Environment. Electric and
Mr Ashish Harsharaj Kale
E [email protected]

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

International Director fada.in | October 2018 F A D A Journal 5
Mr Nikunj Sanghi
E [email protected]

Industry Track

A Not So Festive Season for the Auto Market

Auto Sales in the urban decent growth of 7.27% at company’s sales tally in Apr-Sept’18 against 91,269
market were dampened 18,156 units. PV sale in the September 2018. The units sold in the corresponding
due to high fuel and insurance interna onal market was also domes c sales of hatchback period in 2017. The company’s
cost and wealth destruc on in down by 0.40% YoY. models in compact segment export stood at 545 units in
the stock markets during (Swi , Celerio, Ignis, Baleno, Sept’18.
Sept’18. Also the unprecedented Domes c sales of commercial Dzire) grew by a meagre 1.7%
rains in some parts of the vehicles, a barometer of y-o-y to 74,011 units, while Rajesh Goel, SVP & Director,
country forced people to economy, stayed in fast lane, Ciaz in the Mid-Size segment Sales and Mktg, HCIL, said, “The
postpone their high cket pos ng a double digit 24.14% posted a whopping 11.5% subdued market sen ment
purchases to a later date. growth in domes c market y-o- increase in domes c sales at combined with higher base of
However, the sales in the rural y to 95,867 units in Sept’18. 6,246 units. UVs posted 8.7% Sept’17 and onset of Shradh
market as compared to urban LCVs sales volume grew by growth in the domes c market period in Northern India from
ci es fared be er supported by 22.9% and M&HCV’s witnessed selling 21,639 units and Vans last week resulted in lower
good monsoon and 25.97% growth in domes c notched 6.6% increase at sales in September compared
government’s decision to sales to 39,208 units as 14,645 units during the to last year. ”
increase the minimum support compared to 31,125 units in month. MSIL’s export was in
price for farm commodi es. The Sept’17. Export of M&HCVs also nega ve terrain, clocking Ford India’s combined
auto retail industry on the other registered a growth of 27.54% 24.2% de-growth y-o-y to domes c wholesales & exports
hand was saddled with above at 4,853 units against 3,805 8,645 units during the month. in September registered 19,988
average inventory forcing units in the same month last vehicles, compared to 16,525
manufacturers to shower year. LCVs’ exports also posted Hyundai Motor India Ltd vehicles in Sept’17 accruing a
discount rain to lure buyers and a 2.40% growth YoY. (HMIL), the country’s second growth of 21% YoY. In domes c
push sales. largest carmaker reported slide market, Ford sold 8,239
3-Wheelers recorded domes c of 4.5% in its domes c sales at vehicles as against 8,769 units
The second quarter of FY 19 sales of 69,066 units, which 47,781 units and a whopping in the same month last year.
ended with Sept’18, registering translated into a decent 11.65% 22.2% y-o-y growth in exports Exports grew to 11,749 vehicles
an increase in total domes c increase y-o-y. Exports of 3- at 14,976 units during compared to 7,756 units in
sales of vehicles across wheelers too were in posi ve September 2018. Sept’17.
categories by 3.72% to terrain, accruing double digit
2,584,096 units as against growth by 39.11% to 48,733 Vikas Jain, Na onal Sales Head, Toyota Kirloskar Motor (TKM)
2,491,425 units in September units in Sept’18 from the HMIL, said, “Hyundai registered sold a total of 12,512 units in
last year. Exports increased corresponding figure of 35,031 a cumula ve volume of 62,757 the domes c market in Sept’18
during the month by 17% YoY. units last year. units in Sept’18 with strong against 12,335 units in Sept’17.
demand in export markets. The company exported 566
It was an extremely tough The domes c sales of two- Hyundai's GRAND i10, ELITE i20 units of the E os series during
month for the passenger wheelers at 2,126,484 units & CRETA outperformed in their the month against 1,342 units
vehicle sales. The PV sales grew by 4.12% during the respec ve segments and in Sept’17. The company
(comprising of Cars, UVs & month. The exports of two- marked a record sale of over witnessed a growth of 17% in
Vans) in the domes c market wheelers recorded a double- 11,000 units each in the month the first six months of FY19 as
de-grew by 5.61% and reported digit growth of 18.08% y-o-y to of Sept’18.” compared to the same period in
17,383 units sale lesser than 297,177 units during the FY 18.
the same period last year. The month. Honda Cars India Ltd (HCIL)
car sales stood at 197,124 units reflected the subdued Commen ng on the sales
in the domes c market in Car market leader Maru consumer sen ment with sales performance, N Raja, Deputy
Sept’18 down by 5.60% from a Suzuki India Ltd (MSIL) declining by 18.8% to 14,820 Managing Director, Toyota
year earlier. The UVs were recorded a tepid 0.7% growth units during the month from Kirloskar Motor said, “We are
down by 8.29% selling 77, 378 in its domes c sales volume 18,257 units sold in Sept’17. happy to have sustained a
units during the month against that stood at 151,512 units in HCIL registered a cumula ve posi ve growth momentum
84,374 units sold in Sept’17. Sept’18. It was the Ciaz, UVs growth of 3.5% during H1 of FY due to the strong demand of
However, Vans registered a and Vans that boosted the 19 selling 94,419 units during Crysta, Fortuner, Yaris and the

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

Industry Track

E os Liva. We have reached a power brands and our range of wheeler exports by the delivered a robust performance
significant milestone of more commercial vehicles.” company accrued 13.4% YoY with 23,733 units compared to
than 4 lakh happy customers growth to 49, 560 units. 19,182 units over last year, a
for E os Series in the month of Renault India and Nissan India growth of 23.7%. This growth
Sept’18.” the other players in this Scooter sales of the Company was strengthened by the new
segment, con nued to be in the grew by 17.2% from 121,601 Tata Ultra range of trucks. In the
Tata Motors' total sales nega ve terrain registering units in Sept’17 to 142,562 interna onal market as well,
(including exports) of 40.8% decline at 6,434 units units in Sept’18. Motorcycle the company sold 5,164 units
passenger vehicles in Sept’18 against 10,874 units sold in sales grew by 15.7% with sales during the month registering
aggregated 20,720 units, Sept’17 and 35.5% at 3,227 increasing from 143,923 units 33.4% growth.
higher by 5.6% over Sept’17. units against 5,003 units sold in in Sept’17 to 166,489 units in
The domes c sales of Tata the corresponding month last Sept’18. Mopeds sales grew by Mahindra & Mahindra sold
passenger vehicles in Sept’18 year respec vely in the 19.1% with sales increasing 22,914 commercial vehicles in
stood at 20,491 units, rising by domes c market. from 85,330 units in Sept’17 to Sept’18, registering a 19.3%
6% over 19,334 units sold in 101,645 units in Sept’18. growth in the domes c market.
September last year. This Hero MotoCorp saw its total In the Medium and Heavy
growth has been aided by the sales grow to 769,138 units in India Yamaha Motors recorded Commercial Vehicles segment,
sale of Tiago with the recent Sep’18, which translated into nega ve growth with its M&M sold 1,100 vehicles
launch of Tiago NRG, the a 6.7% increase y-o-y, its domes c sales of two wheelers during the month, a growth of
Nexon AMT and Nexon KRAZ highest-ever sales in any falling y-o-y by 3.2% in Sept’18. 19.3% and 21,814 units of LCVs.
limited edi on witnessing single month. While the Exports for Sept’18 stood at
good trac on in the market. company’s domes c sales Suzuki Motorcycle India, the 2,292 vehicles, a growth of
Cumula ve sales of PV in the rose by 6.4% and the exports other two-wheeler player 6.9%.
domes c market for the fiscal rose by 19.3% y-o-y to 20,603 registered a healthy growth of
(Apr-Sept’18) grew by 31%, at units. 24.3% in domes c sales at Ashok Leyland sold a total of
106,865 units compared to 63,137 units and a 33.9% rise in 19,374 units ensuring a decent
81,417 units for the same Bajaj Auto sold 273,029 two- exports at 8,994 units. 26% growth in Sept’18. In
period, last fiscal. wheelers in Indian market domes c sales, the company’s
September 2018, against Royal Enfield also headed sales tally stood at 18,078 units
Mahindra & Mahindra 247,418 vehicles sold in north selling 70,065 units in Sept’18 an increase of 31.4%
(M&M) registered a decline Sept’17, a growth of 10.4% YoY. gaining marginally by 1.0% y-o- YoY. Exports were in nega ve
of 15.5% in domes c sales of Company’s export grew by y. territory, plumme ng by 19.8%
its UVs, Cars and Vans, selling 29.2% to 157,910 units during to 1,296 units during the
21,391 units in Sept’18 as the month. Mahindra Two-Wheelers month.
against 25,327 units a year registered 78.2% decline in the
earlier. The company’s total Honda Motorcycle and domes c market and 73% fall in Volvo Eicher Commercial
sales, including the domes c Scooter India (HMSI) sales the interna onal market as Vehicles (VECV), a Volvo Group
& interna onal sales figures headed south registering 8.7% compared to the sales in the & Eicher Motors joint venture,
of passenger vehicles stood at slide in its domes c sales to same month last year. recorded total sales of 6,588
22,576 units during Sept’18, 520,400 units in Sept’18 as units in Sept’18 as compared to
climbing down by 13.5% from compared to the 569,822 units Tata Motors domes c sales of 5,934 units in Sept’17,
26,099 units in Sept’17. sold in Sept’17. Exports at commercial vehicles in Sep’18 recording a growth of 11%.
Exports of M&M were on high 35,340 units were up by 10.1% grew by 27.4% at 44,107 units
growth trajectory shoo ng up YoY. as against 34,631 units in Strong economic ac vi es,
by 53.5% y-o-y to 1,185 units Sept’17. The cumula ve sales with growth in core sectors
during the month. TVS Motor registered a total for the period Apr-Sept’18 was and fes vity all round
two-wheelers sales growth of at 232,487 units as compared to provides hope for healthy
Commen ng on the monthly 17.1% with sales increasing 161,370 units for same period sales trac on in the auto
performance, Rajan Wadhera, from 350,854 units in Sept’17 last year, a growth of 44%. market. But the rising fuel
President, Automo ve Sector, to 410,696 units in Sept’18. prices, high insurance
M&M Ltd, said, “We are happy Domes c two-wheeler sales In the domes c market, the premium rates and upcoming
to have closed the first half of registered a growth of 17.6% M&HCV segment for Tata elec ons suggests that the
FY-2019 with a growth of 14% from 307,160 units in Motors con nued to grow by road ahead may be bumpy for
which was possible due to our September 2017 to 361,136 31.9% with 20,374 units auto market.
units in Sept’18. The two- compared to 15,449 units last
year; and the LCV segment

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

India Economics

CPI Inflation Remains Muted | IIP Decelerates on a low of US$ 13.98bn against a US$ 6.5bn from US$ 7.9bn in by 42.97% YoY in Sept’18. been doing so for the last four
Higher Base | Trade Deficit at 5-Month Low deficit of US$ 17.36bn in Aug’18, while non-oil trade Tightening global oil supply months. Petroleum exports
Aug’18. Exports contracted by balance also came to a 5-month due to impending sanc ons rose to US$ 4.4bn while
CPI Infla on Remains Muted IIP Decelerates on a Higher Base genera on sped up despite a me last month a er 17 2.2% YoY on the back of an low of US$ 7.5bn from US$ on Iran and economic crisis in growing by 26.8% YoY.
high base showing healthy straight months of decline. abnormally high base due to 9.4bn in Aug’18, allaying some Venezuela along with
CPI infla on remained muted The Index of Industrial growth of 7.6% against 6.7% Decelera on can be seen in all change in GST regula ons in concerns on that front. Non-oil persistent demand shall Declining global trade
at 3.8% YoY in Sept’18 against Produc on Growth suffered YoY in July. the sectors in the usage basis Sept’17, however sequen ally exports were driven by con nue to put upward volumes due to the ongoing
3.7% YoY in Aug’18. This is due to a higher base and came classifica on with they grew posi vely to US$ engineering goods, petroleum, pressure on interna onal crude United States-China trade war
lower than the market in at 4.3% YoY in Aug’18 as 16 out of the 23 industry infrastructure / construc on 28bn. Imports rose by 10.4% organic & inorganic chemicals oil prices. OPEC spare capacity and rising protec onism in
es mate of 4% YoY. Food compared to 6.5% YoY in Jul’18. groups in the manufacturing goods sectors slowing even YoY, coming to a 5-month low of and plas c & linoleum while has also plummeted to ~2.5% of the United States, may be
infla on at 0.5% YoY against Mining & Quarrying Produc on sector have shown posi ve though on a lower base. US$ 41.9bn from US$ 45.2bn in non-oil imports were driven by global demand, laying the base major nega ve factors for
0.3% YoY in August remains declined at the rate of 0.4% YoY growth in August. Labour Aug’18. Exports for H1FY19 electronic goods, coal & coke, for further rise in crude. India’s trade balance.
the key dragger of headline against growth of 3.4% YoY in intensive manufacturing Trade Deficit at 5-Month Low grew by 12.5% YoY while machineries and gold. However, despite the rising oil
infla on. The House Rent July. Manufacturing growth sectors con nued to show imports grew by 16.2% YoY, prices, petroleum imports
Allowance (HRA) impact on slowed to 4.6% YoY against higher posi ve growth a er Trade deficit for the month of bringing the total merchandise Global Factors & Rising declined sequen ally to US$
housing infla on seems to be 7.0% YoY in July while Electricity turning posi ve for the first- Sept’18 stood at a 5-month trade deficit for H1FY19 to US$ Crudes 10.9bn in Sept’18 from US$
waning but remains 94.3bn. Oil trade balance fell to 11.8bn in Aug’18 and have
significant, with housing Global Brent crude prices rose
infla on at 7.1% YoY against
7.6% YoY in August, although a
high base also played its role.
Rising interna onal crude oil
prices con nue to be a
significant upside risk on
infla on with fuel and light
infla on at 8.5% Y-o-Y. On the
Miscellaneous goods’ front,
household goods and services,
transport & communica on
and Educa on are the key
drivers with 4.9%, 6.4%, 6.4%
YoY Infla on respec vely. Core
CPI (ex. Food & Fuel) grew at
5.8% YoY, easing slightly from
5.9% YoY in August.

The benign headline infla on
comes as RBI had decided to
keep the benchmark repo rate
unchanged in its last mee ng,
ci ng controlled headline
infla on figures. Going ahead,
as the impact of the MSP rate
hikes through the Market
Assurance Scheme (MAS) and
chances of fiscal slippage start
to show, infla on might be
pushed up. Geopoli cal
concerns regarding oil, external
balance considera ons and
trade wars remain significant
risks.

10 F A D A Journal October 2018 | fada.in fada.in | October 2018 F A D A Journal 11

F A D A News would not have been possible skilling the workforce and also Master's in Commerce and in
and let me place on record my being responsible ci zens.” Business Management. He is
Change of Guard at F A D A - thankfulness to one and all. Managing Partner of United
Mr John K Paul Handsover the Baton to Our strength is the unity of our Brief profile of Mr Ashish Automobiles, one of the largest
Mr Ashish Harsharaj Kale, the New President pack. Let us keep up this Harsharaj Kale – President, F A selling Bajaj 2W dealership in
vibrancy in our work and F A D D A India and Managing India and also deals in
A can surely scale greater Director – Provincial Mahindra Automo ve. He has
heights in the days to come. I Automobile Co. Ltd. been regularly recognized by
once again thank all those who Mahindra and Mahindra
associated with me in my Mr Ashish Harsharaj Kale is the Limited and is the member of
endeavours and wish the new Managing Director of Provincial Dealer Council.
team all success, along with my Automobile, Nagpur. Provincial
promise on con nued support is in the auto dealership He is the Vice President of
in every way possible.” business since 1930 and is one
of the oldest dealer partners of United Group of Ins tu ons
Commen ng on his Mahindra & Mahindra Ltd, both
appointment as the new F A D A for its auto and farm equipment MR ASHISH HARSHARAJ KALE having Educa on Ins tu ons at
President, Mr Kale said, “I will division. It also operates
first thank Mr John in terms of mul ple franchisees of President, Allahabad and Greater Noida
what we have been able to Mahindra First Choice Wheels
achieve under his leadership in Nagpur. Federation of Automobile impar ng Engineering,
over the last 2 years. Moving Dealers Associations Management and Computer
ahead, as India zooms past Provincial Auto are also dealer (F A D A) Degrees.
Germany and becomes the 4th partners for Bharat Benz Trucks
largest Auto Market in the and Buses as well as for Nissan He is also the Director at United
world, there are enough India. Provincial has also
opportuni es for us, the forayed into the insurance Bharat, Hindi Daily Newspaper
dealers in mes to come. With brokerage business and are
opportuni es, we will also licensed by IRDA as General having circula on in Eastern
witness a lot of challenges due Insurance Brokers in the group
to the changing nature of the company, Provincial Insurance U ar Pradesh. He is Chapter
business and changing Broking Pvt Ltd.
regula ons. Our viability is Chairman of Indian Industry
under severe stress and the Mr Kale is also the President of
current business model needs Vidarbha Automobile Dealer Associa on. He was President
to be re-worked with all stake Associa on since 2012, a very
holders. During these mes, ac ve associa on and under his of Allahabad Automobile
we need to be united and stay leadership VADA has organized
put. two very successful Auto Expo's Dealership Associa on in 2010-
in Nagpur, with par cipa on
F A D A as the apex body will from all OEMs. Shri Kale is also 12. Mr Gula has been ac vely
work towards building this member of social organiza ons
Federa on of Automobile unity as well as enhancing the and clubs in Nagpur, such as the associated with F A D A for the
Dealers Associa ons (F A D capabili es of our dealer Rotary club of Nagpur, Vidarbha
A) of India, the apex na onal Associa on since 2012. He has F A D A India places on record its community. I am confident, Cricket Associa on, Gondwana last 8 years.
body of Automobile Retail succeeded Mr John K Paul, apprecia on for the immense that with my team, we will Club and Central Provinces Club
Industry, unanimously elected Managing Director at Popular contribu on made by Mr Paul work towards fulfilling the and has been involved in its Brief profile of Mr Manish Raj
Mr Ashish Harsharaj Kale as the Vehicles & Services Pvt. Ltd., over the last two years as the aspira ons of our members commi ee in the past. Singhania – Honorary
new President at its 289th who completed his term as the President of the Federa on. and building a brighter Secretary, F A D A India and
Council Mee ng which was 33rdPresidentoftheFedera on. Under his aegis, the Federa on iden fica on for all of us in the Brief profile of Mr Vinkesh Managing Partner – Ralas
held immediately a er the 54th was made discernible as the Auto Retail fraternity. Gula – Vice President, Motors
Annual General Mee ng of the The Council also appointed Mr most relevant body vis-à-vis the Together, we will also partner F A D A India and Partner –
Federa on at Nagpur on 5th Vinkesh Gula , Partner – JOHN K PAUL auto retail sector, in the eyes of in the growth of our na on by United Automobiles MR VINKESH GULATI Mr Manish Raj Singhania is the
October 2018. Mr Kale is the United Automobiles, Allahabad Immediate Past President, the Policy Makers, OEMs, being employment generators, Vice President, owner of Ralas Motors, which is
Managing Director at Provincial as the Vice President, Mr Federation of Automobile Dealers and other Industries Mr Vinkesh Gula is a Law Federation of Automobile a dealership of M&M Ltd and
Automobile Co. Ltd. based out Manish Raj Singhania, Dealers Associations allied to us. F A D A has also Graduate and has done Dealers Associations Mahindra Trucks & Buses Ltd.
of Nagpur. Provincial is in the Managing Partner – Ralas (F A D A) played a key role in bringing (F A D A) He is also the President of
auto dealership business since Motors, Raipur as the Honorary together the Auto Dealers Raipur Automobile Dealers
1930 and is one of the oldest Secretary, Mr Chi oor under its umbrella who have a Associa ons (RADA) and the
dealer partners of Mahindra & Selvakumar Vigneshwar, total market share of 90%. State secretary of Eastern India
Mahindra, both for its auto and Deputy Managing Director – Chamber of Commerce and
farm equipment division and Anaamalais Toyota, On giving over the baton to Mr Industries.
also dealer for Bharat Benz Coimbatore as the Honorary Kale, Mr Paul said, “Though a
Trucks and Nissan Motors. Mr Treasurer and Mr Nikunj lot of ground remains to be He has been invited by various
Kale is also the President of Sanghi, Managing Director – J S covered, it gives me a sense of organisa ons to speak on
Vidarbha Automobile Dealer Fourwheel Motors Pvt Ltd, fulfilment and pride in what different topics like Budget,
Alwar as the Interna onal has been achieved so far. Had it Excise Duty, etc., and under his
Director for the year 2018-19. not been for the uns nted leadership, RADA has organised
support from all quarters, this four very successful Auto Expos
in Raipur. He has also been

12 F A D A Journal October 2018 | fada.in fada.in | October 2018 F A D A Journal 13

F A D A News

awarded the “Automobile Council for the last 5 years. He
Person of the Year” by Think has been a council member of
Media Inc. in the Chha sgarh the Federa on of Automobile
Leadership Awards 2014 and Dealers Federa on for the last
his dealership, Ralas Motors five years.
has received the Emerging
Chha sgarh Awards 2013 – MR MANISH RAJ Having visited more than 60 MR NIKUNJ SANGHI
THE GREEN BUSINESS AWARD SINGHANIA countries, he loves travel. His International Director,
by Think Media Inc. for the Honorary Secretary, personal interests include Federation of Automobile
lavishing Greenery of the Federation of Automobile camping, nature photography Dealers Associations
dealership. Dealers Associations and fishing and off-roading. (F A D A)
(F A D A) Having a day of learning at work
Brief profile of Mr Chi oor and spending me with his He is ac vely engaged in
Selvakumar Vigneshwar – MR CHITTOOR SELVAKUMAR family, friends and dogs is his community ac vi es in Alwar
Honorary Treasurer, F A D A VIGNESHWAR defini on of a fulfilled day. and other parts of Rajasthan in
India and Deputy Managing Honorary Treasurer, various capaci es, such as,
Director – Anaamalais Toyota Federation of Automobile Brief profile of Mr Nikunj Member, Rotary Club, Alwar;
Dealers Associations Sanghi – Interna onal Trustee, Rotary Charitable
Born into a business family in (F A D A) Director, F A D A India and Trust; Trustee, Jaipur Calagary
Coimbatore, Mr C S Vigneshwar Managing Director – J S Eye Hospital; Trustee,
spent his childhood in Chennai. Fourwheel Motors Pvt Ltd Rajasthan Swasthya Yoga
Schooled in Don Bosco Parishad; Vice President, SML
Chennai, he later graduated in Being B Com (Hons), ACS, LLB, Blood Bank Charitable Trust,
Commerce out of Loyola Mr Nikunj Sanghi is the MD of J Alwar; and Life Member of Bal
College Chennai. He later S Fourwheel Motors Pvt Ltd Hit Shiksha Sami Educa onal
pursued his MBA from GRD located at Alwar, Rajasthan that Society.
College Coimbatore before is 3-S dealers of Mahindra &
adding an MSc in Interna onal Mahindra. He also manages the Mr Nikunj Sanghi is also
Business from Manchester 4-S dealership of Hero associated with various
Metropolitan University. MotoCorp Ltd. professional/business
organisa ons for the promo on
He joined family business in the Mr Sanghi has received number of business and professional
year 2004, being the first in the of awards for his business ac vi es. Amongst the various
third genera on to do so from performance and social work, posi ons held by him are: Patron
the family. Today the business including – Rajasthan - Tractor and Automobile Dealers
group known as the ARC group Government Cita on for Associa on, Alwar; Member -
has interests in goods Contribu on to Beau fica on Managing Commi ee, Centre of
transporta on, automobile of Alwar City; Best Service Excellence, ITI, Alwar; Member -
dealerships, drinking water, Dealer for Honda Power Industrial Advisory Commi ee,
packaged foods, renewal Products Ltd; Roll of Honour for Government of Rajasthan;
energy, green energy Best Human Resource Policies Council Member - Alwar
alterna ves, farming and amongst Mahindra Chapter, The Ins tute of
educa on. The group has Dealerships; Roll of Honour for Company Secretaries of India;
gained a strong environmental Best Systems and Processes and President, ASDC. He was the
focus to add to its exis ng amongst Mahindra President of F A D A during 2010-
pioneering HR and CSR way of Dealerships; Cer ficate of 2012.
thinking. Merit for Best All-Round
Performance amongst
Mr Vigneshwar has been a Mahindra Dealers for the Years
member of the Apex 2003-04, 2004-05, 2005-06 and
Consulta ve Commi ee of 2007-08; and Cer ficate of
Volvo Eicher Commercial Merit for Best All-Round
Vehicles for the last 9 years and Performance among Tractor
has been the President of the Dealers for 2003-04, 2004-05
Toyota India Service Dealer and 2005-06.

14 F A D A Journal October 2018 | fada.in fada.in | October 2018 F A D A Journal 15

Digital Technology

Staying Ahead as move the en re buying process financing journey with new Banks Moving online, however, is
AUTO FINANCE GOES DIGITAL online. Prospec ve customers aggregator pla orms, unlikely to be a panacea for
will be able to find a car, view dealerships will lose profits In all likelihood, aggregators banks. It requires significant
INNOVATIVE DIGITAL STARTUPS ARE favor of aggregators, the dealer selects the one that’s pricing & incen ves, schedule a in both the sales and the will ul mately drive down investment in new
reshaping the challenging car incumbents will need to most profitable for the test drive, apply for financing, financing of cars. Dealer lenders’ margins. Given how technologies. At the same me,
shopping and financing process embrace digi za on or risk dealership while mee ng the es mate trade-in values, and groups and large individual difficult it is to fight aggregators, it can greatly expand the
into a quick and easy being le behind. consumer ’s minimum lock in a deal—all before ever dealerships can s ll succeed, teaming up with them is poten al reach of regional
experience for customers. The requirements. (See Exhibit 1.) se ng foot in a showroom. but only if they build their clearly the easier op on for midsize players, which would
changes, which have already THE TWILIGHT OF ANALOG own digital direct-to- banks. Aggregator pla orms increase compe on and
started to take root, will create CAR BUYING More than 90% of auto finance All this ac vity will translate consumer sales channels will allow banks to increase or margin pressures in some
an auto finance ecosystem in transac ons go through this into a more transparent and and team up with aggregator decrease sales volumes as markets: the more banks that
which digital aggregators For many people, buying a car is protracted process. With 85% streamlined car-buying process pla orms. This will likely get they wish. Using a few follow this path, the lower the
increasingly control the sales a series of hassles. It requires of new cars and 50% of used that eliminates obstacles such them more qualified leads, pla orms is a much more chance of success.
and financing process and scou ng a car at a dealer, cars currently purchased with as insufficient informa on and to the disadvantage of the flexible way of managing
specialized players occupy the ge ng a first quote, and financing, that adds up to a long wait mes. (See Exhibit 2.) many smaller dealerships por olio size than moving the OEMs and Cap ve Banks
various parts of the value chain. comparing it with quotes from great many cars. In this accelerated customer that lack their own digital sales force in thousands of
other dealers & websites journey, credit approvals will sales channel. The more cars branches. Car manufacturers and their
These developments will have —then returning to the dealer The advent of digital tools that take minutes instead of hours these large dealerships finance subsidiaries are in a
major implica ons for the and nego a ng again. Once the include pla orms, applica on or days. And finaliza on will arrange financing for, the Although it may be difficult to be er posi on than banks to
exis ng order—car dealerships, price is agreed upon, there’s programming interfaces, and take place via smartphone, with larger their commission from negate the power of prosper in the new landscape.
banks, and original equipment financing to arrange. The dealer authen ca on technologies limited risk of financial fraud or the bank or financing aggregators, banks have an Unlike other lenders, these
manufacturers (OEMs) and sends the specifica ons out to a may soon make that process a iden ty the . company that is providing important weapon at their cap ve banks have contact with
their financing subsidiaries. As few lenders and waits to hear thing of the past. Aggregator the loan. disposal: data, which they could the customer at the point of
the balance of power shi s in back. When the offers come in, pla orms are developing REDEFINING THE BALANCE OF leverage to develop a sale. They also have more data,
¬direct-to-consumer channels POWER Even for dealerships that proprietary sales channel. This which allows them to develop a
that will allow buyers to shop successfully make these strategy would require them to deeper understanding of their
online for loans and get them The new auto finance eco- adjustments, significant build a pla orm with flexible customers. Assuming they
approved before going to the system will affect the posi on challenges remain. If car interfaces to provide customers develop sufficient analy c
dealership. And fintech lenders of each group of incumbents purchases move to online with a seamless process. capabili es, they can analyze
and peer-to-peer lending differently, while providing channels and auto pla orms, Capital One’s Auto Navigator is pa erns to iden fy follow-on
pla orms provide new opportuni es for new entrants. tradi onal dealerships will a good example. Its proprietary and cross-selling opportuni es
financing op ons that range Here is how this shi will play come under serious threat. pla orm enables customers to and to manage a ri on. In
from personalized ¬interest out among the major stake- This is a real possibility, given pre-qualify and personalize addi on, the aggregator
rates and variable terms to holders. that Ford and other OEMs, their auto financing in minutes pla orms that threaten their
completely new ownership including Mercedes and and purchase a car at one of business can actually be of
models such as shared leasing Dealerships BMW, are planning to build more than 12,000 par cipa ng service to cap ve banks by
and car subscrip ons. their own direct-sales models. dealers. providing visibility into
As car buyers increasingly financing offers from
begin their purchase and compe tors. For the first me,
cap ves can use this
Seizing the opportunity, digital informa on to convert
startups have already begun customers.
making their mark across the
value chain. Bolstered by some Cap ves have another
$17 billion from investors, advantage: flexibility. They
many are se ng their sights on don’t have to finance loans all
the financing space. the me, just when it best
supports the OEM’s sales
Established players, too, are targets. If the manufacturer is
ge ng into the act. Ford, for able to sell most of its cars with
example, is developing the low leasing or low loan costs,
pla orm Ready.Shop.Go. to the cap ve can use financing
opportunis cally, as a customer

16 F A D A Journal October 2018 | fada.in fada.in | October 2018 F A D A Journal 17

Digital Technology

acquisi on tool. From an OEM’s the buying process and manage For OEMs, digital pla orms PREPARING FOR THE NEW needs to make use of all the
perspec ve, a large cap ve the overall client rela onship, provide a way to build client ENVIRONMENT tools available, from agile JV to
balance sheet is not necessarily which might allow them to rela onships & increase sales. digital technologies.
-desirable because it can have a occupy large parts of the value Some OEMs are already Although it’s difficult to predict
nega ve ¬impact on the OEM’s chain. Banks have a be er view launching direct-sales models the pace of change or what the Of course, companies must also
credit ra ng and create a of the credit risk of clients who on in-house pla orms. new auto finance ecosystem will con nue to focus on their day-to-
regulatory burden as well. have used other banking look like, no company is likely to day business processes. The goal
Instead of financing loans itself, products, such as mortgages, Large dealerships will be able to emerge unscathed. This makes it should be to improve opera onal
the OEM can provide financing which enables lenders to create build their own direct-to- cri cal for all players to think efficiency as much as possible.
through a third-party lender. value in the financing process consumer channel. This is likely through what the new dynamics Standardized and op mized
Alterna vely, it can use funding itself. This data might also allow not an op on for smaller will mean for them. processes will ensure the cash
from the sales func on to lower banks to offer more dealerships, which should flows needed to support and
the car’s cost of financing. individualized pricing on car consider teaming up with To adapt to the fast-changing finance the parts of the business
loans. startups that can help them environment, companies need focussedoninnova on.
Despite these advantages, what their role will be in the for example). This means they them to meet the needs of increase sales volumes and to become as flexible as
cap ves s ll need to develop new ecosystem, how they will must con nue to aggressively those customers be er than Develop a Pla orm Strategy finance commissions. possible. They must have a While the fate of the various
new approaches if they want to create value for long-term move toward becoming other players can. Some department or task force players in the auto finance
be prepared for changes in the success, and what ¬pla orm mobility players by inves ng in dealerships may be be er Incumbents will need to decide For banks, working with focussed on digital ini a ves value chain is yet to be
auto financing landscape. Not strategy will work best for their car sharing, ride hailing, and suited occupying a smaller spot whether to build their own aggregator pla orms provides separate from the rest of the determined, we can be sure of
that they need convincing: they business. self-driving taxis, among other in the ecosystem—such as the digital pla orm or join an greater flexibility and reach company—in the form of an one thing: customers will
have already felt firsthand the things. place where people pick up aggregator. There is no clear- while avoiding the costs and incubator, for example. benefit enormously from the
effects of the rise of ride sharing Determine Your Role in the their cars. cut best op on—it will depend risks of developing their own. Whether this department is changes now underway. With a
and electric vehicles. New Ecosystem A tradi onal bank won’t be able on the company’s strategic However, banks could see their developing its own startup, streamlined and transparent
to sa sfy the new gatekeeper Determine How to Create goals, current capabili es, and margins compromised should se ng up an aggregator process in place, finding,
ENSURING A POSITION IN THE Every player will need to adapt requirements because it lacks Long-term Value investment priori es. those aggregators develop pla orm, or undertaking some purchasing, and financing cars
NEW WORLD OF AUTO or at least fine-tune its current broad customer access. But it strong nego a ng power. other innova ve venture, it will be much faster and easier.
FINANCE posi on. These decisions will can try to expand its posi on Each company needs to iden fy
depend in part on the and power by making itself the part or parts of the value MAURYA MOTORS LIMITED
Much about how the emerging company’s current capabili es, central to the car-buying chain it realis cally wishes to
auto finance ecosystem will its customers’ expecta ons, process. To improve access to occupy in the future. Only Tata Authorised Dealer for
actually work -remains to be and, importantly, how much it clients, banks will need to companies that create Passenger and Commercial Vehicles
seen. In our view, the ¬major is able to invest. become part of established compelling value for customers
catalyst will be new aggregator digital pla orms or set up their in the long term will succeed. Plot No. C-1, Industrial Area
or -direct-player pla orms, Ecosystem gatekeeper is, of own (with dealership networks, Data is the key. Each player Patliputra
which are likely to replace course, the most desirable for example, or online pla orms) needs to consistently collect,
dealerships as the ini al inter posi on because it means and comprehensively enhance process, and use data to be er Patna - 800 013
ac on point for customers. (See having greatest control over the their digital and analy cal understand its customers and Phones: 92636 32685 / 93636 39260 / 92636 66948
Exhibit 3.) Regardless of process and the client capabili es. to automate and digi ze
whether the pla orm is rela onship. Tradi onally, processes as much as possible. E-mail: [email protected]
focused on loans, car leasing, or OEMs held this posi on in the The op ons for dealerships will [email protected]
used cars, we’re likely to see value chain. To keep it in the depend on their size and digital As the type of data available will
only a few winners and many face of aggregators and other capabili es. Larger, digitally vary among industry players,
losers in each part of the value digital a ackers, they will need savvy dealerships may be the value provided by that data
chain. to adapt to shi ing customer suitable as gatekeepers for will vary as well. OEMs and
behavior (by expanding their clients about whom they have large dealerships have data that
No ma er where they sit in the offerings to include car sharing, data. This role would allow enables them to address
ecosystem, dealerships, banks, customer needs throughout
and cap ve banks need to
rethink key elements of their
business models or risk dis-
intermedia on. These
incumbent players must
address three cri cal issues:

18 F A D A Journal October 2018 | fada.in fada.in | October 2018 F A D A Journal 19

Membership No. Dealer Principal Name Dealership Name City State Franchise
26 Mr Mayyur Daspute Mayur Wheels Malegaon Maharashtra Bajaj Auto
MEMBERSWE WELCOME OUR NEW 27 Mr Gaurav Ghatge Ghatge Motors Pvt Ltd Pune Maharashtra Mercedes
28 Mr Mansingh B Pawar Ratnapprabbha Motors Aurangabad Maharashtra Mahindra
No. Dealer Principal Name Dealership Name City State Franchise 29 Mr Dilip Kriplani Harison Motors Wardha Maharashtra HSMI
1 Mr Sateesh Ravella Aruna Motors Pvt Ltd Renault 30 Mr Achal A Gandhi A K Gandhi TVS Nagpur Maharashtra TVS Motor
2 Mr Paila Gurumurthy S G Motors Vijayawada Andhra Pradesh MAN Trucks 31 Mr Harvinder S Mata Sarbani Motors Chandrapur Maharashtra Bajaj
3 Mr I Mohan Raju Asha Automine Pvt Ltd MAN Trucks 32 Mr Govind Rathi G M Motors Wardha Maharashtra Hero
4 Mr Savinder S Sethi G D Motors Visakhapatnam Andhra Pradesh MAN Trucks 33 Mr Dhananjay Soni Soni Automobile Pusad Maharashtra Hero
5 Mr Jasmeet Singh Bhasin Kesar Trucks Pvt Ltd MAN Trucks 34 Mr Rajendra Jadhao Raj Motors Amrava Maharashtra HMSI
6 Mr Ravindra Tiwari Tiwari Motors Eluru Andhra Pradesh Mahindra 35 Mr Avinash Lokhande Aakash Automo ves Dhule Maharashtra M&M
7 Mr Myron Paul A Pereira Paulo Motors MAN Trucks 36 Mr Pankaj Malhotra Jaimal Automobiles Pvt Ltd Nagpur Maharashtra TVS Motor
8 Mr Urmish Jansari Poonam Autowings Pvt Ltd Guwaha Assam MAN Trucks 37 Mr Pradip Kumar Beuria Birendra Motors Bhubaneswar Odisha MAN Trucks
9 Mr Kaushal Desai A J S Enterprise HMSI 38 Mr Manpreet Singh Jeet Agencies Pvt Ltd Kurali Punjab MAN Trucks
10 Mr Nikhil Agarwal Vedha Motors Pvt Ltd Raipur Chha sgarh MAN Trucks 39 Mr Gurinder Pal Singh G S Enterprises Jalandhar Punjab HMSI
11 Mr Shalin Wadhwani Autowings India Yamaha 40 Mr Sai Giridhar Authorized Motor Vehicles Dealers Assn Jaipur Rajasthan N/A
12 Mr A Mohan Raju Kalyani Motors Pvt Ltd Ambikapur Chha sgarh Maru Suzuki 41 Mr Mudit Gehlot Anupam Motors Jodhpur Rajasthan Ashok Leyland
13 Mr Sainikraj Chordia Khivraj Motors MAN Trucks 42 Mr Sudhir Gupta Bharat Udyog Bharatpur Rajasthan Eicher Tractors
14 Mr Prashanth P H Mahanth Motors Salce e Goa Mahindra 43 Mr S Chandrasekar N Mahalingam and Company Coimbatore Tamil Nadu MAN Trucks
15 Mr Shamil A Mouzam Worldwide Automo ve Works Pvt Ltd MAN Trucks 44 Mr E P Sathish Kumar Marvel Industries Salem Tamil Nadu MAN Trucks
16 Mr Jaipal R Bellam Sri Venkkateshwara Auto Ahmedaabd Gujarat Hero 45 Mr K Gomathihinayagam Vijai Earthmoving Equipment Pvt Ltd Chennai Tamil Nadu MAN Trucks
17 Mr Subash Rajani Balan KVR Autocars Pvt Ltd Maru Suzuki 46 Mr K B Sidarth Balu Autos Thanjavur Tamil Nadu HMSI
18 Mr Zacharias Poomkudy Poomkudy Motors Pvt Ltd Nadiad Gujarat MAN Trucks 47 Mr Govind Machani MGB Motors & Auto Agencies Pvt Ltd Hyderabad Telangana MAN Trucks
19 Mr Ajith Bhaskaran Phoenix Cars India Pvt Ltd Volkswagen 48 Mr Abhishek Toshniwal Varishta Motors Kukatpally Telangana Piaggio
20 Mr J K Thomas MK Motors Gurgaon Haryana Tata Motros 49 Mr Ja n Verma J S V Motors and Construc ons Pvt Ltd Barabanki U ar Pradesh Hyundai
21 Mr Joseph Maijo George Maijo Automobiles Pvt Ltd Maru Suzuki 50 Mr Harshit Goenka Goenka Auto Pvt Ltd Varanasi U ar Pradesh MAN Trucks
22 Mr Ashish Pande Bhopal Automobiles Dealers Welfare Assn Ranchi Jharkhand N/A 51 Dr Pankaj Mital Lucknow Raman Motors Lucknow U ar Pradesh MAN Trucks
23 Mr Tehseen Khan Sagar Autotech Pvt Ltd Skoda Auto 52 Mr Kapil Agarwal Balaji Automart Pvt Ltd Hardoi U ar Pradesh Hyundai
24 Mr Shashank Gupta Gupta Automobiles Bengaluru Karnataka Hyundai 53 Mr Sandeep Rastogi Jugal Kishore Commercial Lucknow U ar Pradesh Force Motors
25 Mr Milind Mahajan Midwest Autosales Pvt Ltd MAN Trucks 54 Mr Vikram Singh Ashok Motors Pvt Ltd Haldwani U arakhand MAN Trucks
Bengaluru Karnataka 55 Mr Rajesh Rateria Rateria Entrepreneurs Pvt Ltd Siliguri West Bengal MAN Trucks

Davangere Karnataka

Mangaluru Karnataka

Raichur Karnataka

Perintalmanna Kerala

Kochi Kerala

Calicut Kerala

Ko ayam Kerala

Ernakulam Kerala

Bhopal Madhya Pradesh

Bhopal Madhya Pradesh

Shahdol Madhya Pradesh

Indore Madhya Pradesh

20 F A D A Journal October 2018 | fada.in fada.in | October 2018 F A D A Journal 21

Perspective

Standing Up India’s Ecosystem -
Who Will Drive the Change?

Electricvehicles(EVs)onthehorizon In terms of charging infrastructure, a mix of
plug-in charging and ba ery swapping
The report aims to provide a vehicle models has to be carefully deployed based
deployment roadmap and discuss how EV on the dynamics of various vehicle
adop on is likely to take place across vehicle segments.
segments. Alongside our research, we
conducted interviews with government Regulatory support would play a key role in
officials and senior industry execu ves while EV adop on. A combina on of both fiscal
analyzing the pa ern of EV adop on across and non-fiscal incen ves is cri cal in the
vehicle segments. The report lays out an medium term.
ac on plan and considera ons for the
industry stakeholders as key takeaways. A total cost of ownership (TCO)
perspec ve:
Key Findings
- For passenger car fleets, the TCO
The transi on to EVs is necessary for the remains comparable, even at present,
Indian automo ve industry to con nue to post BS-VI implementa on, the cost
retain its foothold and gain addi onal ground dynamics would shi significantly in
as the world shi s its axis towards Evs. favor of EVs. This is likely to result in ease
of transi on for private users as well.
In terms of adop on in the country, we
believe that two-wheeler (2W) fleets and - For 2W fleets, the TCO of EVs is lower
three-wheelers (3Ws) would be the first off than of the ICE counterparts.
the block, followed by intra-city buses,
corporate cabs and government fleet. Globally, we are witnessing outsiders to the
Private cars and commercial vehicles, tradi onal automo ve industry leading the
par cularly medium and heavy commercial charge, securing higher valua ons than
vehicles (M&HCVs), are likely to take some their much well entrenched tradi onal
rivals. Automakers need to act fast and join
me for adop on. the EV revolu on in order to stay relevant.

22 F A D A Journal October 2018 | fada.in fada.in | October 2018 F A D A Journal 23

Perspective 2Ws: Given the ease of with door-step delivery
24 F A D A Journal October 2018 | fada.in and service
charging, this segment
represents the highest There is a significant opportunity
poten al for penetra on, even that lies within the commercial
for areas with minimal charging segment of 2Ws, such as
network delivery bikes, which have high
daily run and easy access to
An end-to-end ecosystem (right charging infrastructure
from in-house manufacturing
to se ng up charging 3Ws: Given the head start of
infrastructure) being created by
start-ups is likely to accelerate the e-rickshaw segment, a mild
the adop on of e2Ws. push by the Government could
drive a na on-wide adop on
The following aspects would
help drive e-mobility in this Considering the lack of essen al
segment: public transport for last-mile
connec vity, e-rickshaws could
- Over 2 million petrol-run play a cri cal role while giving
2Ws with a long daily run the necessary boost to vehicle
engaged in courier electrifica on in the country.
services►►
India has emerged as one of the
- Intra-city travels (maximum biggest 3W markets, with a total
of around 100-150 km a sales of 0.6 million units in FY17.
day) 3Ws are widely used in India as
an affordable means of public &
- Ease of charging: Can be goods transporta on over short-
easily charged on a to-medium distances.
standard residen al/
workplace plug point The segment is witnessing an
influx of e-rickshaws, with
Embracing the EV technology, a some es mates pu ng their
slew of start-ups are looking to numbers around 1 million. This
drive electric mobility in this wide scale adop on can be
segment. Tradi onal OEMs are a ributed to:
also making strategic
investments into these - The market is characterized
companies. by inexpensive and non-
standardized component
Not only manufacturing e-bikes imports that are assembled
locally.
or e-scooters, these companies - Developing charging to build infrastructure at
are looking at various other infrastructure: Partnering regular distances in various - The absence of strict
aspects of electric mobility as with cafes, restaurants, ci es to address the issue of enforcement of regula ons
well:►► malls & apartment complexes rangeanxiety►► and the unorganized nature
of the segment dominated
- In-house technology: by informal lending and
Developing technologies contrac ng.

and processes in-house in - Increased inclina on of
the absence of local consumers toward e-
supplier network rickshaws as they are faster
than manually pulled
- Training vendors to become rickshaws & offer cheaper
commute than tradi onal
EV grade suppliers► 3Ws.

- Investment-light
distribu on: Resor ng to
innova ve delivery models

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

Perspective

While these vehicles are re- - Pilot programs by state Spotlight on Key Enablers EV Charging infrastructure:
shaping the last-mile governments/OEMs to Successfully Deploy
connec vity, this segment the EV Ecosystem in India There is an urgent need to offer
con nues to grapple with its own CVs - Buses: Electrifica on of flexible charging infrastructure
set of challenges, which include: Role of regulators: There is a for different vehicle segments
buses allows for an opportunity need for a long-term policy to drive adop on of EVs
Design and ba ery to showcase a plausible framework that allows for
deployment of EVs. con nuity and a racts desired The three key roadblocks
- Use of lead-acid ba eries, investments required for EV associated with EVs are as
which need to be replaced The industry, however, deployment follows:
within 7-8 months remains divided on the
readiness of electrifica on of Government could poten ally also explore opportuni es for OEM brand differen a on - High capital cost of ba eries
- Cost-sensi vity of the this segment. One school of explore a two-phased policy in-houseba erymanufacturing. would be required.
segment, which makes Li-ion thought believes it to be the clearly sta ng the me-frame - Charging me on the sta ons
ba eries commercially driver of electric mobility in and magnitude of incen ves. - Ease of manufacturing of EVs - Given EVs are a cross-sector compared to refuelling
unviable &warrants a much India while the other finds it to combined with a larger trend play, new sources of value diesel/petrol
higher scale for adop on be one of the most difficult EV supply chain: The absence of increased vehicle sharing, crea on will need to be
segments to electrify. of an EV supply chain in the there is a risk of vehicles discovered and the pecking - Range anxiety
- Current design of e-rickshaws country demands an urgent ge ng commodi zed and order of the industry
doesn’t possess the required The segment is also witnessing investment in R&D and local thus an increased focus on par cipants will get redrawn. As a result, ba ery swapping
vehicle strength and o en fail a growing interest of domes c manufacturing capabili es has emerged as a feasible
on safety standards as well as foreign OEMs. As a solu on for public fleets
result, a number of products including e-buses, and e3Ws
Charging are being introduced in the (rickshaws and autos).
country. Addi onally, the
- Unavailabilityoffixede-rickshaw 34 cars per 1,000 individuals. e- - OEMs need to offer be er Government is exploring ways The growth of EVs will lead to
stands&chargingpoints Car sales, however, have products with improved range to address one of the biggest profound changes across the
con nued to be very low and hurdles – high cost of e-buses automo ve value chain, including
- Electricity the for charging cons tuted merely 0.1% of the - A widespread network of (due to larger ba eries). It technology, manufacturing
PV sales in FY17. charging sta ons plans to work with automakers systems, ownership models,
Regulatory and compliance to reduce the ba ery size of distribu on and a ermarket
Electrifying rental cars is likely to High acquisi on cost of the intra-city buses from 300 kWh support. This would cause a
- Licenses issued without take some more me given the vehicle, which is of paramount to 50 kWh. significant decrease in
tes ng the driving skills and average trip length of a rental importance to a retail customer: addressable market for vehicle
lack of driver training car is longer with lesser For a large-scale sustainable repairs/ service and would require
predictable routes. This would - Likely decrease in ba ery rollout of fleets of e-buses, themtobuildnewcapabili es.
- Absence of safety & require a network of fast DC prices over the next few years there is a need to formulate a
compliance standards, chargers on the main traffic to bring the EV cost down city-based approach. From the perspec ve of
municipal & spa al planning arteries and na onal highways. component suppliers, large
- Costs to further reduce as C Vs - Goods carriers: SCVs automo ve suppliers are likely
- Registra on norms not being Retail customers are likely to be OEMs achieve manufacturing to adapt to the drama c
followed by majority of e- the last in line to adopt EVs, scale and LCVs are likely to be early changes; however, small
rickshaws plying on the road given the concerns around high adopters, eventually propelling players could be hit the hardest
s cker price and an overall - Prices of conven onal electrifica on in the M&HCV from this disrup on.
Financing viability gap. vehicles likely to go up with segment.
the implementa on of BS-VI The exis ng suppliers will not
- High interest rate charged by Range anxiety due to occasional The poten al for a switch to EVs only have to deal with the
lenders/ stringent payment inter-city travel & unpredictable Lack of awareness: remains high due to the high transi on, but also face severe
terms given the unorganized routes for a retail customer vehicle u liza on in the CV compe on from the new
nature of the segment - More demonstra on projects segment. However, high entrants in the industry such as
including EV pilots & na onal ba ery capacity requirements technology companies and
- Buyers’ inclina on toward outreach programs due to higher payload and ba ery producers.
cheaper products, posing uncertain es around decline in
threat to safety residual value with rapid Implica ons
ba ery technology
PVs: PV fleets are expected to improvements might act as a - OEMs need to reinvent their
deterrent to adop on. business to focus on building
adopt EVs early, while retail rela onships with ba ery
customers are likely to wait for and electric/electronics
a be er value proposi on component suppliers and

Indian car market offers a
significant growth poten al
given the car density stands at

26 F A D A Journal October 2018 | fada.in fada.in | October 2018 F A D A Journal 27

Consumer Case vehicle may not straightaway Revision Pe on may be 29.06.2015 whereas the the Hon’ble Supreme Court is
go to the Insurance Company to allowed and the Insurance in ma on was given on not applicable in the present
National Consumer Disputes Redressal claim compensa on. At first, he claim may also be allowed on 12.10.2015. No proper facts and circumstances of the
Commission, New Delhi will make efforts to trace the non-standard basis. jus fica on has been given by case and the Pe oner cannot
vehicle. It is true that the owner the Pe oner for such huge derive any benefit from this
MR PREM NARAIN, Consumer Protec on Act, 1986 – Sec on 17 – On 29.6.2015 the had taken place of the vehicle has to in mate the insurer 7. I have carefully considered delay in giving in ma on to judgment. It is seen that there
Presiding Member of Pe oner and the FIR was lodged by the Pe oner/Complainant Ramniwas on the same day immediately a er the the of the arguments of the the Insurance Company. is delay of 103 days in giving
– The insurance claim was repudiated by the Insurance Company on the ground that they were the vehicle. However, this learned counsel for the in ma on to the Insurance
Ramniwas – Petitioner informed a er 103 days of incident of the – The complainant filed a consumer complaint condi on should not bar Pe oner and have In the case of Om Prakash Vs. Company a er the vehicle was
before the District Forum – The Insurance Company was proceeded against ex-parte, however, se lement of genuine claims examined the material on Reliance General Insurance stolen. This is a gross viola on
Versus the complaint was dismissed vide order dated 12.01.2017 of the District Forum on the ground par cularly when the delay in record. First of all, in the case and another (supra), the of the terms and condi ons of
that the in ma on was given a er a huge delay – The complainant preferred an appeal before in ma on or submission of of the , the police and the Hon’ble Supreme Court has the policy. As no cogent
Tata AIG General the Sate Commission and the same has been dismissed in limine vide order dated 12.01.2017 of documents is due to Insurance Company both are condoned a delay of 8 days in explana on has been given by
Insurance Company Ltd the District Forum on the ground that the in ma on was given a er a huge delay – The unavoidable circumstances. to be informed without any giving in ma on to the the Pe oner for the delay in
Anr – Respondents complainant preferred an appeal before the State Commission and the same has been The decision of the insurer to delay. Learned counsel has Insurance company on the giving in ma on to the
dismissed in limine vide order dated 24.04.2017 of the State Commission – As there is no reject the claim has to be based conceded that no in ma on ground that the delay was Insurance Company, I do not
Revision Petition No 2532 illegality, material irregularity or jurisdic onal error in the order dated 24.04.2017 of State on valid grounds. Rejec on of was sent to the Insurance properly explained. The take find any error in the orders
of 2017 Commission, which calls for any interference from this commission, RP No 2352 of 2017 is the claims on purely technical Company in wri ng though from this judgment of the passed by the fora below.
dismissed at the admission stage - Revision dismissed at admission Stage. grounds in a mechanical oral informa on was given to Hon’ble Supreme Court is that
Decided on 9.7.2018 manner will result in loss of the Insurance Company. the technical reason of delay in 8. Based on the above
Important Point - When there is no illegality, material irregularity of jurisdic onal error in the confidence of policy-holders in However, no proof has been in ma ng to the Insurance discussion, I do not find any
(Against the Order dated order dated 24.04.2017 of the State Commission, which calls for any interference revisional the insurance industry. If the filed for the same and Company should not come in illegality material irregularity or
24/04/2017 in Appeal No jurisdic on cannot be invoked. reason for delay in making a therefore, oral informa on the way of se lement of claim jurisdic onal error in the order
108/2017 of the State claim is sa sfactorily explained, has no value and its if the delay is properly and dated 24.04.2017 of the State
Commission Rajasthan) such a claim cannot be rejected authen city is in doubt. sa sfactorily explained. In the Commission, which calls for any
on the ground of delay.” Insurance Company in its present case, the Pe oner interference from this
Prem Narain, Presiding ground that the Insurance admission stage. Learned repudia on le er has clearly has not been able to explain Commission. Accordingly, RP
Member - This Revision Company was informed a er counsel stated that the FIR was 6. Accordingly, the learned stated that the incident of the delay sa sfactorily and No.2352 of 2017 is dismissed at
Pe on has been filed by the 103 days of incident of the . lodged on the same day. counsel prayed that the the had occurred on accordingly, this judgment of the admission stage.
pe oner Ramniwas against The Complainant filed a However, due to inadvertence
the order dated 24.4.2017 of consumer complaint before the the Insurance Company could MARIKAR GROUP OF CONCERNS
the State Consumer Disputes District Forum. The Insurance not be informed in wri ng
Redressal Commission, Company was proceeded though verbal in ma on was BENELLI - INDIA - Benelli Motorcycles; EICHER MOTORS LTD - Royal Enfield Motorcycles;
Rajasthan, (in short ‘the State against ex-parte, however, the given. Both the fora below have HONDA MOTORCYCLES & SCOOTERS INDIA PVT LTD - Honda Motorcycles & Scooters; NISSAN
Commission’) passed an Appeal complaint was dismissed vide not considered this aspect and MOTOR INDIA PVT LTD - Nissan Cars and Datsun Cars; CANON INDIA PVT LTD - Canon
No.108/2017 dismissing the order dated 12.01.2017 of the have passed the order against products; GABRIEL INDIA LTD; NXT AUTOMART (INDIA) LTD - Drivol, Duracell, FIAMM,
Appeal against the order dated District Forum on the ground the Complainant. The learned Bluechem; and R & R TEXTILE - Ramraj, Ramyyam.
12.01.2017 of the District that the in ma on to the counsel further stated that the
Consumer Disputes Redressal Insurance Company was given Hon’ble Supreme Court has Branches: Alamcode, Alappuzha, Aluva, Anjugramam, Aralvaimozhi, A ngal, Bhoothapandi, Cochin, Kollam,
Forum, Nagur (in short ‘the a er a huge delay. allowed the claim where there Kulasekharam, Marthandam, Munnar, Nagercoil, Nedumangad, Pathanamthi a, Thrissur, Trivandrum and Varkala.
District Forum’) passed in was a delay in in ma on to the
Complaint No.132 of 2016. 3. The Complainant preferred Insurance Company in the Phones: 0471 - 247 7420, 247 1814, 246 5882 | Hotlines: 9961 88 900 | E-mail: [email protected]
an Appeal before the State ma er of Om Prakash Vs.
2. Brief facts of the case are that Commission and the same has Reliance General Insurance and fada.in | October 2018 F A D A Journal 29
on 29.06.2015 the the had been dismissed in limine vide another, Civil Appeal No.15611
taken place of the vehicle of order dated 24.04.2017 of the of 2017, decided on October 4,
Pe oner and the FIR was State Commission. 2017. The Hon’ble Supreme
lodged by the Pe oner/ Court has observed the
Complainant Ramniwas on the 4. Hence the present Revision following:-
same day. The insurance claim Pe on.
was repudiated by the “ 11. It is common knowledge
Insurance Company on the 5. Heard the learned Counsel that a person who lost his
for the Pe oner at the

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

The Zero Hour

“OEM & DEALER BOND NEEDS TO GO BEYOND TARGETS AND savvy which makes it handling. We also track with building large dealer Sales have dropped by 20 per
MARKET SHARE DISCUSSIONS” - ARJUN PAWAR, DIRECTOR, RATNAPPRABBHA MOTORS, AURANGABAD impera ve for sales consultant response & home visit me to facili es. cent YoY. The foo alls are low
to be as knowledgeable and maintain swi reac on me. and inventories have built up to
Not many people in this industry will have to work ecosystem. Yes, autonomous Electric & autonomous vehicles updated for which we “Virtual Reality is 40-50 days. The scenario is not
genera on are looking forward together to make this a success. vehicles are the future but a would s ll take me to affect consistently conduct role plays Virtual Reality is another another technology very encouraging.
to joining Auto Retail business. distant one. overall retail business. But and tests to check knowledge of technology that is gaining that is gaining
What made you take the baton Electric technology is sure to internet, digi sa on, virtual our team. momentum as we have started momentum as we Rain deficiency is ac ng as a
of day-to-day business from help in building sustainability to How are you preparing your reality (VR) are major enablers using it in our showrooms. This have started using it in major deterrent factor at the
your father, who has created a mobility solu on; however dealership, both internally and for change in auto distribu on. Online enquiry has come up as could really be the future in our showrooms. moment. Rising fuel prices and
huge name for himself? conven onal technology externally from these new source and it is treated as auto retail business. Se ng up the recent increase in insurance
engines and fuels would s ll disrup ons may it be 2W, PV, Even in a er 3 city like ours good as a walk in. We small customer experience Se ng up small cover costs together have
From a young age I have been play a predominant role in the CV or C E in which you operate? people are extremely tech consistently prac ce call audits zones around the city with VR customer experience muted consumer sen ments.
passionate about cars. I would years to come. Hybrid to improve quality & objec on tech would help us do away zones around the city New launches are also not
with VR tech would helping in building momentum.
visit our showroom during my technology is somewhat the help us do away with
building large dealer Compara vely CV & CE have
holidays and look around all the best fit at the moment. I expect facili es.” been performing well. This
demand is backed by a strong
cars. I remember back then it to take shape and gain in Automakers are collabora ng pull in the infrastructure sector.
with online retail pla orms to Next year being the elec on
Mahindra had launched the popularity over the next let consumers book their year, the government is being
favourite vehicle online than very aggressive on road
new Armada & a simple power decade before we can switch on visit a dealership. Yes, as projects and irriga on
dealers we all have websites segments. Improving
window switch (a first in to full electric cars. but there is limited resource macroeconomics condi ons
alloca on and less investments coupled with favourable
Mahindra then) had got me “Electric technology is we have made on these fronts. industry dynamics such as
excited. Unknowingly all these sure to help in building strong vehicle financing are
small things set the background “The market has taken sustaining buyer sen ment in
a tremendous hit with CV & CE.
for me to be a part of this sustainability to huge decline in sales
across PV & 2W. Sales What are your views on
business. mobility solu on; have dropped by 20 today’s OEM-Dealer Principal
per cent YoY. rela onship and how can it be
This, with the fact that my however conven onal improved w.r.t. making this
Inventories have built rela onship stronger and
father had built this business technology engines up to 40-50 days.” transparent?
from scratch, it would have only and fuels would s ll
been selfish on my part to walk play a predominant As dealers it is important we The rela onship an OEM shares
away and pursue something role in the years to track these trends around the with its dealers has lot to do
new. Also, the enormous come.” globe to keep up with mes. with the culture within that
opportuni es presented by this company. We deal with 4
How is the current fes ve different brand and each one
business, made my decision season turning out for you in has a dis nc ve approach
terms of sales? Please share towards its dealers.
easier. Automobile today is a desired your views from all the
categories which you operate OEM & dealer bond needs to go
How do you foresee this product. With autonomous Arjun Pawar, son of Mansingh Pawar, is 27, young, dynamic and Gen-Next Entrepreneur from the city of Aurangabad. He joined in. beyond targets and market
industry when disrup ons like technology coming, in the Ratnapprabbha Motors as the Director within a year under the guidance of his Mother Sanjivani and a er comple ng his master’s from UK share discussions. This
electric and autonomous element of desirability might in 2013. Arjun currently manages 11 – 3S and 14 – 2S facili es with brands like M&M - PV & CV, JCB, Ford and HMSI opera ng out of The market has taken a rela onship will have to take a
vehicles are knocking at our get lost and a car could then be Marathwada region. His company provides employment to 700+ people. Arjun likes traveling, is an avid reader and loves to drive sedans on tremendous hit with huge more holis c approach in
doors? looked at merely as an object longer routes. If not into automobiles, he would have chosen a career in IT & Computers. Arjun is single and elder of the two. Younger decline in sales across PV & 2W. improving the condi on on
for transporta on. This could Ranveer is currently perusing his Bachelor’s in USA. ground for dealers.
Electric and autonomous erode the pull for private cars in
mobility are exci ng new the market, leading to In an exclusive interview with Saharsh Damani, Editor - F A D A Journal, Arjun shares his experience, concerns and the future of Auto Retail One of the key issues a dealer
technologies for the future. It complete transforma on into in India. faces today is in sourcing and
would bring in a revolu onary this industry. So ware
change in our industry in turn technology companies would
affec ng the en re business play a major role in developing
model, both for the automobile cars. We already see this
manufacturers and dealers. To happening today with Google
make it cost effec ve for the and Apple registering patents
mass market segment, posi ve and inves ng in building
policy framework would be autonomous vehicles. It will be
required. Hence the interes ng to see how dealers
government & the automobile would be a part of this new

30 F A D A Journal October 2018 | fada.in fada.in | October 2018 F A D A Journal 31

The Zero Hour

retaining good manpower. “There should be Calcula ng market share on
OEMs must partner with uniformity in RTO tax whole sale will have to change
dealers to train & build a across the country. to retail off take to get correct
competent sales/service Secondly, auto retail market scenario and reduce
personnel’s. This will help industry should be inventory build-up at
derive be er output, handling given industry status. dealerships.
customers efficiently, create
abundance of skilled people & Franchisee Protec on BS VI norms will come into
drive down manpower costs. Act needs to be force in April 2020. How do you
brought in since the visualize its impact on two
“The constant effort in risk in the business is wheelers segment with
increasing number of ge ng higher. Auto regards to sales, par cularly
outlets, having large retail is highly capital on mass market products
showrooms at intensive and no exit which you cater to?
prominent loca ons policies are defined by
and constantly the OEMs.” The key challenge would be the “One of the basic
inves ng to upgrade availability of BS VI fuel across things that Dad has
these facili es to There should be uniformity in India and then aligning the taught me about
newer norms is taking RTO tax across the country. en re value chain system employee sa sfac on
a toll on dealers.” Secondly, auto retail industry within limited me frame. 2- is to pay salaries and
should be given industry wheeler is a mass market incen ves on me to
Dealer profitability is a major status. Disparity in land usage segment. By 2020 sales are ensure employees
concern. The constant effort in needs to be looked into. expected to be over 24 million remain commi ed to
increasing number of outlets, Industrial land is provided for units. 2-wheeler India growth the dealership.”
having large showrooms at workshops but not for story at a macro level is strong.
prominent loca ons and showrooms as it considered as The new fuel emission norm the legacy of trust”, to make
constantly inves ng to upgrade commercial ac vity. This will have an impact by 10-20% the customer keep coming
these facili es to newer norms creates a lot of complexi es. in price of the vehicles but it will back to us for all his
is taking a toll on dealers. OEM’s Franchisee Protec on Act not disturb the sales in the long automobile needs.
should sit with dealers to work needs to be brought in since run. In India, due to weak public
around dealer friendly the risk in the business is transporta on system 2- Employee Sa sfac on – One
processes and draw long me ge ng higher. Auto retail is wheeler will con nue to be the can do various HR ac vi es
investment plans to help dealer highly capital intensive and no best alterna ve for cheapest for employee sa sfac on but
manage their dealerships exit policies are defined by the transporta on since not one of the basic things that
efficiently. OEMs. The recent sudden exits everybody can afford a car. dad has taught me about
by General Motors/ Man Truck employee sa sfac on is to
To increase market share, new India, has made it all the more Please share with our reader, pay salaries and incen ves on
dealers are appointed where necessary for a policy for the at least one best prac se in
viability of dealerships is then protec on of dealers and their terms of customer sa sfac on me to ensure employees
ques oned. OEMs should employees in such cases. and employee sa sfac on, remain commi ed to the
rather work with dealers closely which can be adopted keeping dealership.
to make them perform to the “Calcula ng market the future in mind?
desired expecta ons, fostering share on whole sale
a strong and long term will have to change to Customer Sa sfac on –
rela onship. retail off take to get Customer loyalty is everything.
correct market Customer today knows pre y
What are the main issues scenario and reduce much which vehicle he wants.
according to you faced by the inventory build-up at Dealerships therefore need to
auto retail business at a broad dealerships.” provide the overall sales and
level? service experience in the first
visit itself. Auto dealers need
Suppor ve Government policy to work on their brand image
and regula ons are needed. by being transparent. This is
our moto at Ratnapprabbha
Motors “We strive hard to man

32 F A D A Journal October 2018 | fada.in fada.in | October 2018 F A D A Journal 33

News Basket

In line with its commitment to Maruti Suzuki Flags-Off Electric Vehicles
introduce an Electric Vehicle for Field Testing
by 2020, Maru Suzuki India Ltd
(MSIL) has flagged-off proto- This extensive real-life usage Vehicle technology in India. suitable Electric Vehicle to
type Electric Vehicles for field of the vehicles in mul ple delight Indian customers.
test. terrains and clima c Tes ng of these vehicles will
condi ons will help the also help Maru Suzuki to These Proto-type Electric
The prototype EVs were flagged company get valuable insights gather cri cal inputs based on Vehicles have been developed
off from the Company’s that will help in valida on and customer perspec ves and will on an exis ng model of Suzuki
Gurugram facility by C V Raman, successful launch of Electric help to create a reliable and Motor Corpora on, Japan.
Senior ED (Engineering), on
October 9, 2018

At the MOVE Summit in
September this year, Osamu
Suzuki, Chairman of Suzuki
Motor Corpora on (SMC),
Japan had announced the
na on-wide field tes ng of 50
prototype Electric Vehicles.

Electric Vehicles have been
developed exclusively by
Suzuki Motor Corpora on,
Japan and built at Maru
Suzuki, Gurugram facility, as
Maru Suzuki’s commitment
to Make in India.

Maruti Suzuki’s Japan-India Institute for Manufacturing Welcomes its 2nd Batch

Maru Suzuki’s Japan-India ini a ve between the manufacturing, maintenance classrooms, the latest training
Ins tute for Manufacturing Government of Japan and and services. The courses include tools & equipment. The prac cal
(JIM) at Ganpat University in Government of India to create a Mechanic Motor Vehicle, training workshop has been
Mehsana, Gujarat welcomed its pool of 30,000 skilled Mechanic Auto Body Pain ng, developed to mirror a real shop-
second batch of 362 students manpower for manufacturing Mechanic Auto Body Repair, floor assembly line, the only one
on October 16, 2018. industry in India. Welder, Fi er, Electrician, of its kind in the country. Some
Mechanic Diesel Engine & Driver other features of the ins tute
JIM is set up and managed by Set up as a model ITI, JIM, Cum Mechanic. JIM, Mehsana is include safety lab, virtual welding
Maru Suzuki at Ganpat Mehsana offers courses in eight equipped with modern simulators & spot welding guns.
University. It is a part of a joint trades related to automobile

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

News Unveils

Mercedes-Benz India Launches the Iconic the situa on at hand and, if
Performance Off-Roader - AMG G 63 the driver fails to react, ini ate
autonomous braking. Away
Mercedes-Benz launched technology with the 4.0 litre V8 torque distribu on with a front/ from off-road terrain, Ac ve
the iconic performance biturbo engine, combined with rear split of 40 to 60 per cent. Lane Keeping Assist can detect
off-roader the new Mercedes- its off-road characteris cs, its when the car leaves its lane
AMG G 63 on October 5, 2018. agility and vehicle dynamics. For the first me in the history uninten onally, warn the
With the launch of the new The extreme rock-climbing of the Mercedes-AMG G-Class, driver by making the steering
AMG G 63, the G-Class from abili es combined with sports the driving characteris cs can wheel vibrate, and actuate the
Mercedes-Benz undergoes the car performance, class leading be individualised at the touch brakes on one side to help
biggest change in its history. styling and a high-tech cabin of a finger with five on-road and manoeuvre the vehicle back
makes the new AMG G 63 yet three off-road driving modes. into its lane. The op onal
Powered by a 4.0-litre V8 another legend in the making.” With the five DYNAMIC SELECT Driving Assistance package
biturbo engine that generates on-road modes “Slippery”, includes Ac ve Distance Assist
an astonishing 430 kW (585 hp) AMG SPEEDSHIFT TCT 9G “Comfort”, “Sport”, “Sport+” DISTRONICas well as Blind
of power, helps it a ain 100 transmission used in the new G and “Individual”, the Spot Assist. The Mercedes
km/h from stands ll in a mere 63 has a model-specific characteris cs range from AMG G 63 cocoons the
4.5 seconds. so ware applica on to achieve efficient and comfortable to passengers with a total of 9
very short shi mes. The very sporty. Three off-road airbags. AMG high-
Speaking at the launch, Michael mul ple downshi func on modes – “Sand”, “Trail” and performance braking system
Jopp, Vice President, Sales & allows more spontaneous “Rock” – are available when provide op mum decelera on
Mktg, Mercedes-Benz India, bursts of speed, while the driving off the beaten track. whatever the terrain. Precise
said, “Around the world, G- double-declutching func on in controllability &low response
Class is acknowledged as the “Sport” and “Sport Plus” The Ac ve Brake Assist gives
benchmark amongst luxury off- transmission modes makes for the driver a visual warning if mes ensure op mum safety
road vehicles. Today, we offer an even more emo onal driving the distance to the vehicle in on and off the road. The
the latest itera on of this cult experience. front is too small. An audible electric parking brake is
luxury off-roader, Mercedes- warning sounds when a integrated into the rear axle
AMG G 63. The AMG G 63 has The standard-specifica on AMG danger of collision is calliper and can be ac vated
now reached a completely new Performance 4MATIC all-wheel iden fied; it can also provide and released at the press of a
dimension in terms of drive features rear-biased braking assistance in line with bu on.

Key standard features:

• MUTIBEAM LED
headlamps

• Burmester surround sound
system with 15 speakers

• New COMAND online with
NTG 5.5 genera on

• Widescreen cockpit with
two 12.3 inch displays

• 21” AMG alloys

• Park Pilot with 3600
surround view camera

• Exclusive Interior package
with Nappa leather
upholstery

The new Mercedes-AMG G 63 is
priced star ng INR 2.19 crore
ex-showroom, all India.

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

Upgrades Tata Motors Launches the New Tigor

Ford India Bringing in yet another - Ligh ng up this fes ve season with its third product offering -
Introduces fantas c product to the
New Aspire passenger vehicle market, Tata
Motors announced on October
- New 1.2L Petrol & and generates 96 PS of peak New Ford Aspire also features turns and bends with Electronic 10, 2018, the addi on of its customer set, the new Tigor Red, Pearlescent White & with 4 speakers & 4 tweeters,.
Trusted 1.5L Diesel power and 120 Nm of torque premium alloys and bigger 15- Stability Program (ESP) and next genera on compact comes equipped with a host of Titanium Grey.
Engine while delivering fuel efficiency inch tyres to deliver confidence Electric Power Assisted sedan, new Tata Tigor. With premium features: Supreme Safety: The car comes
of 20.4 km/l. and planted drive dynamics. Steering (EPAS). Also in exclusively styled interiors and Plush in-cabin experience: with a safe & reliable architecture
- Both paired to an new Automa c Transmission, the exteriors, this premium Premium Exteriors: Adding to Premium black and grey with cocoon like safety cell for
5-Speed MT For the Diesel lovers, new Ford The cabin in the New Ford Hill-Launch Assist feature will compact sedan will be available the exterior design elements, interior theme coupled with its passengers, dual airbags as a
Aspire comes with the trusted Aspire features warm, beige ensure greater control on across all Tata Motors the new Tigor with its break standard feature and An -lock
- 5-Year/ 100,000 Km 1.5L TDCi engine delivering 100 interiors, adding to the inclines. authorized sales outlets at free coupe-like roofline and tanium colour faux leather Braking System (ABS) with
Warranty PS peak power, 215 Nm of premiumness and the star ng price of Rs. 5.20 Lakhs dual chamber projector seats, premium kni ed roof Electronic Brakeforce Distribu on
torque and fuel economy of enhanced sense of space. The The New Ford Aspire features for the petrol variant (powered headlamps with sparkling liner and rear armrest with cup (EBD) and Corner Stability
- 6.5-inch Touchscreen 26.1 km/l. cabin is replete with Ford’s in-car infotainment by the 1.2L Revotron) and Rs. chrome finish exudes immense holders, which come as a Control (CSC).
& Six Airbags convenience features including system, SYNC 3 with a 6.5-inch 6.09 Lakhs for the diesel variant style. The 15ʺ alloy wheels are standard feature, provide the
Both engines are paired with an a reverse parking camera, best- touchscreen which allows (powered by the 1.05L offered in dual tone colour car with a luxury feel. Star Performance: The new
Ford India introduced on all-new, five-speed manual inclass automa c climate drivers to control their Revotorq), Ex-Showroom, New scheme and the ORVMs get LED genera on Tigor carries over
October 4, its compact transmission that’s spor er and control system, two USB slots, entertainment and connected Delhi. turn indicators with auto-fold Indulgent comfort: The car the 1.2L Revotron petrol and
sedan - new Ford Aspire - at an fun-to-drive. Offering greater push-bu on start/stop, smartphone using voice func on. It will be available in 6 offers height adjustable driver’s the 1.05L Revotorq diesel
introductory price star ng from power of choice, Ford is also electrochromic IRVM, rain- commands. Commen ng at the launch, shades – Egyp an Blue, Roman seat as standard feature for the powertrains. These engines
Rs. 5,55,000, Ex-Showroom. introducing its latest six-speed sensing wipers and automa c Guenter Butschek, CEO and Silver, Espresso Brown, Berry perfect driving posi on, have been further refined and
Automa c Transmission on the headlamps among many Ensuring complete peace-of- MD, Tata Motors, said, “The scooped out front seat backs op mized to deliver be er
Combining Power, Style & New Ford Aspire. others. mind, the New Ford Aspire is compact sedan segment has for more legroom, head & performance and lower NVH.
Substance, new Ford Aspire is a the only compact sedan in India been an important space for elbow room for the rear Improvements have also been
fresh take on compact sedans Redesigned front fascia The compact sedan offers to come with a first-in-class the customers seeking passengers, with a boot space done in transmission assembly
with many segment-best features a dynamic three- standard dual airbags across five-year or 100,000 KM premium-ness at best value of 419 litres. It also comes to reduce vibra ons. Offered in
technologies, best-in-class dimensional cellular grille. New the variant line-up and several warranty, which includes 2-year coupled with bold and equipped with a fully automa c a 5-speed manual transmission,
safety, fun-to-drive DNA, and fog lamps are encrusted in a features to enhance occupant factory warranty and 3-year a rac ve looks. Connec ng the temperature control (FATC) Tata Motors is also offering an
unmatched cost of ownership. premium chrome surrounding safety such as An -Lock Braking extended warranty. aspira ons of these customers, AMT version on its XZ variant.
and harmoniously integrated System (ABS) with Electronic we are excited to introduce the Next genera on HMI and user The new Tigor will come in 5
“The new Ford Aspire is a i nto t h e f ro nt b u m p e r. Brake-force Distribu on (EBD), The compact sedan is available new Tigor. Loaded with class experience: With a 7ʺ variants – XE, XM, XZ, XZA and
complete package, tailor-made Headlamps in the new Ford helping drivers be er grip, in five variants across two fuel above features, this car is the capaci ve infotainment with XZ+.
for those who don’t follow the Aspire feature a black encasing while keeping the drive op ons and seven colours viz. - result of a perfect combina on Android Auto from Harman, the
crowd and want more out of that looks sporty yet premium. smooth. White Gold, Moondust Silver, of beau ful cra smanship, new Tigor comes equipped
their car experience,” said Similarly, new design tail lamps Smoke Grey, Absolute Black performance, comfort and
Anurag Mehrotra, President accentuate its formidable The New Ford Aspire will enable Deep Impact Blue, Ruby Red technology.”
and Managing Director, Ford stance on the road. its owners to navigate quick and Oxford White.
India. “With many segment- Catering to the ever-evolving
best and industry-first features,
New Ford Aspire ensures that
every customer gets what they
desire - be it looks, the fun of
driving a ributes, safety and
the most-affordable ownership
experience.”

The compact sedan offers
Ford’s all-new, three-cylinder
1.2L TiVCT petrol engine that is
small, light and fuel efficient

38 F A D A Journal October 2018 | fada.in fada.in | October 2018 F A D A Journal 39

Chart of the Month
40 F A D A Journal October 2018 | fada.in

CSR Activity

RADA Extends Cooperation to Cancer Patients

Raipur Automobile Dealers Associa on
(RADA), an associa on member of
Federa on of Automobile Dealers
Associa ons (F A D A), under its Corporate
Social Responsibility has donated 4 Air-
Condi oners (ACs) at Cancer ward of
Mekahara largest Govt. Hospital at Raipur
(CG) on 11 August 2018. Mr Basant Baid,
Director of Vardhman Group donated a
water cooler to the Cancer ward.

RADA President - Mr Manish Raj
Singhania, Mr Amar Parwani, Mr Vijay
Kothari, Mr Basant Baid, Mr Anil Agrawal
donated the ACs to Cancer Department
Director and HOD, Dr Vivek Chowdhary.
On the occasion, Dr. Vivek Chowdhary
gave le er of apprecia on to RADA
President - Mr Manish Raj Singhania
apprecia ng the CSR work done by RADA
and said that it will benefit the Cancer
pa ents.

Mr Manish Raj Singhania while expressing
his gra tute to Dr Vivek Chowdhary added
that RADA would con nue to provide a
helping hand to Cancer pa ents in future
as well.

Obituary

F A D A Deeply Mourns the Sad Demise of Mr Sachin Shelat

Mr Sachin Shelat, 64 , F A D A Council Member for 2016-2017 and 2017-2018 from
Jabalpur passed away on October 21, 2018.

He was the Director of Pres ge Vehicles P Ltd; Kiara Automobiles P Ltd; and
Pla num Nissan. He is survived by his wife - Mrs Stu Shelat and son - Mr Tanmay
Shelat.

Conveying our hear elt condolences to the members of the bereaved family, we,
in F A D A, pray to the Almighty that his soul rests in peace.

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

Opinion

Tractors to Post Healthy Growth for
Third Consecutive Year Though Deficit
Monsoon Could Be A Dampener

“The Union Con nuing on robust and aided the industry for many regions, a result of
Government volume growth over the volumes.” improved precipita on towards
continues with past two fiscals, the domes c the end of the monsoon
its initiatives tractor industry has grown in The IMD’s second stage season, are expected to help in
the current fiscal as well, forecast an cipated the ensuring adequate soil
towards witnessing an expansion of monsoon precipita on in the moisture and bode well for the
doubling ~22% in April-August FY2018 (Y- southwest monsoon season to upcoming rabi crop. The Union
farmers’ o-Y basis). The volume growth be 97% (+/- 4%) of the long Government con nues with its
incomes, with has been rela vely broad period average (LPA). A er an ini a ves towards doubling
the MSP hikes based, with healthy growth early onset of monsoon and farmers’ incomes, with the MSP
for the current recorded across a majority of above-normal volume of hikes for the current kharif
kharif season states even as the monsoon precipita on in the first two season being significantly
distribu on remained uneven. weeks, precipita on remained healthier than previous years.
being Within large tractor markets, weak for a majority of the Addi onally, the government’s
significantly U ar Pradesh, Gujarat, Bihar monsoon season with the thrust on rural spending,
healthier than and Telangana witnessed season concluding below infrastructure crea on and
previous years. volume expansion stronger normal at 91% of LPA. irriga on spending is expected
than industry average, even as Addi onally, a wide varia on in to provide support to rural
” the volume growth remained precipita on exists across incomes over the short to
muted in Madhya Pradesh and regions, with the Eastern and medium term.
Rajasthan. North-eastern regions
receiving deficient rainfall. Even “Over the long term, ICRA
Says Ms Anupama Arora, Vice as the rela vely higher con nues to maintain a long
President and Sector Head, irriga on penetra on levels in a term CAGR es mate of 8-9% for
Corporate Ra ngs, ICRA, majority of the Northwest the industry, with the long-term
“Notwithstanding the strong region would help limit any industry drivers for the industry
volume growth during April- adverse impact of the deficit con nuing to remain intact.
August 2018, ICRA expects the rainfall, weak monsoon The government of India (GOI)
tractor volume growth for the performance in Maharashtra remains commi ed towards
fiscal to be at 10-12% as the and Rajasthan remains area of rural development and agri-
base effect catches up. The concern, with irriga on mechaniza on, a cri cal
demand drivers for the industry intensity in these states component in improving the
con nue to remain intact, remaining low. state of agriculture in the
which has aided robust volume country. The focus of the GOI on
growth in the fiscal ll date. A An uneven spa al and temporal crea ng rural infrastructure
combina on of factors such as precipita on portends a through con nua on of
enhanced agri cash flows, weaker kharif crop output than enhanced alloca on to
healthy haulage demand and ini ally an cipated and could irriga on, roads, and other
adequate financing availability act as a dampener for tractor infrastructure, also bodes well
remain the key demand drivers; volume growth in the second for an improvement in the rural
government support half of the fiscal; however economy over the medium to
programmes have also lent improved reservoir levels as long term” concludes Ms Arora.
support to the farm sen ments compared to the previous year

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



Post-Event Report

Federa on of Automobile authority; se ng up of ‘Auto advent of taxi aggregators on Treasurer; and Mr Nikunj
Dealers Associa ons Zones’ on new highways; and the scene in a big way was yet Sanghi, Past President F A D A
(F A D A) for the first me held bringing the remaining RTOs another major challenge that & MD, JS Fourwheel Motors P
its Auto Retail Conclave, 2018 on the VAHAN portal. He also automobile dealers had to Ltd as Director- Interna onal
in Nagpur on October 6, 2018 laid emphasis on use of contend with. Added to this Affairs for the year 2018-19.
at the Hotel Radisson Blu. The alternate fuel to reduce were the GST and RTO issues
theme of the Auto Retail ou low of foreign exchange with the implementa on of A er the Council Mee ng, F A
Conclave was “Na on and pollu on level. Mr Rajan Vahan 4.0 that have brought D A along with Vidarbha
Building through Employment Pental, Group President and to fore newer challenges and Automobile Dealers
Crea on. The conclave helped Group Head, Yes bank on the complexi es never Associa on (VADA) organised
the automobile dealers occasion, presented a Sapling confronted before. a Townhall in the same venue
understand the important to the Hon’ble Minister. between F A D A members
role played by them in The Auto Retail Conclave and F A D A office bearers for
building the Na on by Mr Devendra Fadnavis, Chief echoed the sen ment that it be er understanding of
providing jobs to more than 5 Minister of Maharashtra was is therefore, incumbent on dealer concerns in the State
million people near their unable to a end the Conclave the automobile dealerships as well as the aspira ons of
homes and skilling them as but through his video and, for that ma er, other the dealer members from F A
well. The Auto Retail industry message reiterated that businesses to keep pace with D A going forward.
is also one of the highest automobile dealers were not and change in tune with the
contributors to the na onal just service providers to the fast changing scenario and The Auto Retail conclave
exchequer by means of tax customers but largest business dynamics. began with felicita ng Mr
contribu ons. The Conclave employment generators in Otherwise, they would not be John K Paul, Immediate Past
also educated dealer their communi es. He added able to survive the disrup on President, F A D A by Mr
fraternity the importance to auto retail industry helped in caused by host of these Bharat Sanghvi, PP F A D A; Dr
brace with the changes the development of the area challenges. Gearing for the Kailash Gupta, PP F A D A; and
happening rapidly in the laws, of their opera ons by up- disrup ons was the need of by the Office Bearers of F A D
taxes, consumers’ aspira ons skilling their employees and the hour for the automobile A who included –Mr Ashish
and the en re ecosystem. helping them to grow in their dealers. Harsharaj Kale, President; Mr
career path. Vinkesh Gula , VP; Mr Manish
The important role played by A day earlier, on October 5, Raj Singhania, Hony
the auto retail industry in More than 250 par cipants 2018, F A D A in its 289th Secretary; Mr C S Vigneshwar,
Na on building was validated a ended the Conclave. The Council Mee ng held Hony Treasurer; and Mr
by none other than Mr Ni n Conclave helped the immediately a er the 54th Nikunj Sanghi, Director-
Gadkari, Hon’ble Union par cipants to understand Annual General Mee ng Interna onal Affairs. Mr Paul
Minister, MoRTH who was the that the contours and elected Mr Ashish Harsharaj thanking everybody then
Chief Guest and by Mr dynamics of retail automo ve Kale as it’s 34th President handed over the Scroll to Mr
Devendra Fadnavis, Chief businesses were changing at who is also the Managing Ashish Harsharaj Kale.
Minister of Maharashtra, alarmingly fast pace. The Director at Provincial
Guest of Honour on the compe on was intensifying Automobile Co. Ltd. based out Mr Ashish Kale in his speech
occasion. Mr Gadkari while with each passing day. The of Nagpur and Mr Vinkesh said that it would be his
apprecia ng the auto retail fierce compe on apart, Gula , Partner – United endeavour along with his
industries contribu on in there were other challenges Automobiles, Allahabad as team to take F A D A to newer
developing the Na on also galore – Road safety and the Vice President for 2018- heights and that in the next
appraised the gathering environment concerns 19. The F A D A Council also one year F A D A promises to
about the ini a ves being invi ng outcry of NGOs and appointed Mr Manish Raj educate One Crore customers
taken by the ministry in people, Judicial ac vism and Singhania, Managing Partner & drivers on keeping roads
connec ng the length and overreach, prolifera on of – Ralas Motors, Raipur as the safer by conduc ng safety
breadth of the country; mobile telephony and Honorary Secretary; Mr sessions and through
crea on of automobile hub in increasing use of digital Chi oor Selvakumar educa ve videos and
Kandla port; reduc on of the technology for marke ng and Vigneshwar, Deputy brochures in regional
role of RTOs under the new other business opera ons, Managing Director – languages. F A D A was
CMVR where in the dealers and growing presence and Anaamalais Toyota, commi ed to keep Roads Safe
will be the vehicle registering influence of social media. The Coimbatore as the Honorary in India. F A D A pledges to

48 F A D A Journal October 2018 | fada.in

Post-Event Report

generate minimum 1 lakh jobs famous auto-driver who Nagesh, Chairman Shopper’s Nissan Motor India); and Mr K
by January 1, 2020 and that delighted his customer @ Stop and the other panellists V S Prakash Rao (Past
F A D A would achieve this Rs.50; and by Major General included: Mr Nikunj Sanghi President, F A D A).
much before the targeted (Retd.) G D Bakshi; Individual (President, ASDC); Mr Lavleen
date. It would also be his Keynotes by Mr Suresh Raheja (MD, Franklin Covey Mr Vinkesh Gula , Vice
endeavour to make F A D A Mahalingam, Vice Chairman, India); Mr Suresh President thanked the
accessible to automobile DHFL Pramerica Life Mahalingam (Vice Chairman, Sponsors Yes Bank, Ikyam,
dealers in Tier 2 and Tier 3 Insurance & Mr C S DHFL); Mr Rakesh Batra, AkzoNobel, Mapmy India,
ci es as well. Vigneshwar on Business & Na onal Head Automo ve, 21North, VADA, Conf-Tech
Entrepreneurship and EY; Mr Shivalik P. (Founder and Zee Business in
Highlights of the occasion also Customer Reten on and and MD, MapMyIndia); Mr suppor ng F A D A in holding
included unveiling of the F A D Panel Discussion on The Praveen Surendiran the mega event. The daylong
A App and F A D A Digest, Future of Auto Retail in India (Managing Director, event concluded with Mr
2018; Inspira onal Sessions Scaling Employability – It was 21North); Mr Arun Malhotra Vinkesh Gula proposing the
by Mr Annadurai, Chennai’s moderated by Mr B.S. (Former Managing Director, Vote of thanks.



Competition Law Statistics

Competition Law Updates Domestic Passenger Vehicle - September 2018

The NCLAT sets aside penalty standards for independent car Li ga on ini ated by US Auto Domestic Sales Comparison
on Hyundai imposed by the dealers, the Na onal Associa on Dealers against German Car
CCI for an trust viola ons of Automobile Manufacturers of Manufacturers may end in OEM Sep-18 Sep-17 Growth Y-o-Y
South Africa (NAAMSA) has se lement (%)
The Na onal Company Law submi ed an automo ve code to FCA India 1,196 2,151 Segment wise Growth
Appellate Tribunal (NCLAT) has set the Compe on Commission for The li ga on ini ated by US auto 209 -44.40
aside the order passed the considera on.The important dealers and consumers against Fiat India 101 395 -51.67
Compe on Commission of India issues raised through the medium Audi, Volkswagen, Mercedes- -59.75
(CCI) imposing a penalty of INR 87 of this dra code relate to Benz, BMW and Porsche, alleging Force Motors 159 8,769
Crores on Hyundai Motor India Ltd allowing independent dealers to collec ve overpricing of auto- 1 -6.04
(HMIL). Earlier, in its order, the CCI service and maintain vehicles, parts and cars with such pre-fixed Ford India 8,239 -
found HMIL to have contravened including new cars, within the parts is likely to end in a 55
Sec on 3(4) of the Compe on warranty period; and permi ng se lement. Presently, the auto General Motors - 18,257 -65.45
Act, 2002 (Act) by allegedly forcing the use of alternate or dealers have proposed a 50,027 -18.83
dealers to procure spareparts, subs tutable parts (previously se lement to the tune of $ 115 HM Finance 19
accessories & all other requirements considered ‘non-genuine’) whose Million, which has been 358 -4.49
such as use recommended quality and safety had not been confirmed by the car Honda Cars 14,820 25,327 -49.44
lubricants/oils, either directly tested. NAAMSA has clarified it manufacturers. The said -15.54
from Hyundai or through vendors will ensure that the campaign to se lement is due to be complete Hyundai 47,781 87 -77.01
approved by it. However, the address all the issues provided in by the end of November 2018. 1,50,521
NCLAT noted that the CCI failed to this dra code will in no way Isuzu Motors 181 0.66
appreciate the evidence and compromise on the safety of the Compe on Commission of 5,003 -35.50
passed the order merely on the consumer and the quality of Pakistan (CCP) notes that the local Mahindra 21,391 10,874 -40.83
basis of the opinion of the Director products and services to be auto industry lacks compe on -21.73
General, which is only an opinion provided to them. Presently, this Mahindra Electric 20 1,735
to assist the CCI with its dra code is open to public Following an open hearing held 19,334 5.98
inves ga on. Clarifying the comments, following which, the in April 2018 in order to address Maru Suzuki 1,51,512 12,335 1.43
responsibili es of the CCI and the CCSA shall arrive at its decision the compe on concerns in the -30.11
lack of evidence to support the regarding its implementa on. automobile sector of Pakistan, Nissan Motor 3,227 4,603
allega ons, the NCLAT held that the CCP has submi ed a
the CCI “is expected to analyse the Supreme Court stays Compe on comprehensive policy document Renault India 6,434
evidence & read it in conjunc on Appellate Tribunal’s (COMPAT) to the Government on the status
with the other evidence on record order that imposed penalty on 3 of such concerns. In the report Skoda Auto 1,358
before forming its final car companies forwarded to the Government,
opinion.”This decision of the the CCP has asserted that inter Tata Motors 20,491
NCLAT will largely benefit the The COMPAT by its order dated alia, complaints of unfair pricing
manufacturers in the auto sector Dec. 9, 2016 concurred with the of auto parts due to ar ficial Toyota 12,512
insofar as no ng that the mere findings of the CCI and directed scarcity are characteris c of the
recommenda on to car dealers to Ford, Toyota and Nissan, to remove market where the exis ng auto Volkswagen 3,217
use a par cular quality of all restric ons imposed through players are not providing
lubricant and oils, keeping in mind agreements on auto parts suppliers adequate benefits to the Total 2,92,658 3,10,041 -5.61
the types of vehicles, would not so as to open up market for spare consumers. Following
cons tute a viola on under the parts and remove all restric ons on comments from the Market Share (%)
provisions of the Compe on Act. supply by original equipment Government on the report, the
suppliers to authorized dealers. On CCP looks forward to dra ing a
Automobile manufacturers appeal, the Hon’ble Supreme Court comprehensive code which shall
submit their own automo ve has stayed the opera on of the govern the local automobile
code to the CCI of South Africa COMPAT’s order and the ma er will industry and ensure an trust
now be taken up on Nov. 1, 2018. compliance.
In a bid to improve working

54 F A D A Journal October 2018 | fada.in fada.in | October 2018 F A D A Journal 55

Statistics

Domestic Two-Wheeler - September 2018 Domestic Commercial Vehicle - September 2018

Domestic Sales Comparison Domestic Sales Comparison

OEM Sep-18 Sep-17 Growth Y-o-Y OEM Sep-18 Sep-17 Growth Y-o-Y
(%) Ashok Leyland 18,078 13,755 (%)

Bajaj Auto 2,73,029 2,47,418 10.35 Segment wise Growth 31.43 Segment wise Growth

H-D Motor 270 309 -12.62 Force Motors 1,284 1,951 -34.19

Hero MotoCorp 7,48,535 7,03,473 6.41 Isuzu Motors 469 367 27.79

HMSI 5,20,400 5,69,822 -8.67 JBM Auto 30 7 328.57

India Kawasaki 387 128 202.34 Mahindra 22,914 19,201 19.34

India Yamaha 79,783 82,444 -3.23 Maru Suzuki 2,038 879 131.85

Mahindra 2W 419 1,925 -78.23 Piaggio Vehicles 201 284 -29.23

Piaggio 9,012 8,059 11.83 SML Isuzu 946 887 6.65

Royal Enfield 70,065 69,393 0.97

Tata Motors 44,107 34,631 27.36

Suzuki 63,137 50,807 24.27

Triumph 80 86 -6.98 VECVs - Eicher 5,685 5,084 11.82

TVS Motor 3,61,136 3,07,160 17.57 VECVs - Volvo 75 149 -49.66

UM Lohia 2W 231 1,273 -81.85 Volvo Group 40 32 25.00

Total 21,26,484 20,42,297 4.12 Total 95,867 77,227 24.14

Market Share (%) Market Share (%)

56 F A D A Journal October 2018 | fada.in fada.in | October 2018 F A D A Journal 57

Statistics

Domestic Three-Wheeler - September 2018

Domestic Sales Comparison

OEM Sep-18 Sep-17 Growth Y-o-Y
(%)

Atul Auto 4,626 4,410 4.90 Segment wise Growth

Bajaj Auto 38,453 34,361 11.91

Mahindra 6,940 5,928 17.07

Piaggio 16,962 15,221 11.44

Scooters India 435 221 96.83

TVS Motor 1,650 1,719 -4.01
Total
69,066 61,860 11.65

Market Share (%)

586 F A D A Journal October 2018 | fada.in

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