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February 2021 issue of F A D A Journal

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Published by FADA Journal, 2021-03-19 01:56:20

F A D A Journal - February 2021

February 2021 issue of F A D A Journal

Federation of Automobile Dealers Associations | | Estb: 1964 February 2021 | Vol. 20 | Issue: XI | Pages : 60 | Rs. 50

fada 4, President’s Message

FADA initiates the first indigenous Dealer
Satisfaction Study 2021

6, India Economics

Journal GDP Q3FY21 | Sluggishness in RBI Sectoral Non
Food Credit Continues | Core Inflation Remains
Sticky | IIP Contracts

14, Demystifying GST

Insights from the Automobile Retail Industry Interest Payable on Net Delayed GST Payment

25, FADA Research 18, FADA in News

Introduction to CAFE Norms - FADA Odisha Chapter Organises Financier-Dealer Meet
in India - FADA Appoints Mr Sanjay Aggarwal as Jammu Chapter Chairperson

34, Automotive Technology 30, Business Achievers

& The Secret Sauce
for Success

Connected Cars: Disruption in How did a Ludhiana-based company go from being an experimental
Mobility home kitchen to the bourses? The success story of Mrs. Bectors Food is
rooted in its visionary leader, Rajni Bector.


Your Only Voice at Centre & State Advocating with Policy Makers

FADA, the “Voice of the Dealer” has represented the interests of FADA’s success lies with its powerful grassroots lobbying efforts,
Authorised Automobile Dealers, their employees and their which are most effective when State Chapters meet with their
customers for more than 57 years. Founded in 1964, when 4 Regional Members of Legislative Assembly and Parliament to advocate on
Dealers Associations envisaged about a synchronised effort at the behalf of all dealers and their customers. This team effort
centre to align India’s Auto Retail under one roof with only one cause strengthens FADA’s ability to advocate on behalf of dealerships and
– To Protect & promote Indian Auto Retail Trade Business. target engagement to dealer-specific issues.

Today, FADA continues to work on behalf of all its members with all In recent years, FADA successfully brought relief to its entire
Ministries of Government, Vehicle Manufacturers, Media & the Public Dealer Fraternity when the sudden lockdown hurt sales and
at large. registrations of BS-4 vehicles and at a time when BS-6 transition
was knocking the door. No one else but FADA could get a
FADA Cares! favourable order from Hon’ble Supreme Court thus saving Dealers
1,000’s of Crores worth of BS-4 Vehicles which would otherwise

FADA JOURNAL - Insights from the Automobile Retail Industry - FADA with its various State Chapters has also been successful in
Monthly Magazine implementing Faceless, Paperless and Dealer Point vehicle
FADA NEWSLINE - Your One Stop Knowledge Centre - Daily e-
Newsletter FADA has also brought Dealers under the ambit of MSME.

GOVERNMENT/OEM CONNECT (both at Central & State level) - FADA has started releasing Auto Retail Registration figures thus
Legal Issues, Industry Status for Auto Retail, Issues affecting Auto Retail brining down inventory levels and helping Dealerships in managing
Industry their finance better.

EXPERTS TO SOLVE DEALER ISSUES - Legal, Tax and RTO issues. Advocacywith OEMs

HAND-HOLDING ON POLICY ISSUES – Emission norms, GST, E- FADA is the dealer’s best advocate in dealer-manufacturer
Way bill, RTO related, etc. relations, addressing concerns with manufacturers. FADA has
now started Annual Dealer Satisfaction Study to discuss the
CONFERENCE – Auto Summit, Vyapar, Regional Conventions & positives and negatives of manufacturer performance and
Seminars initiatives, including incentive programs.

DELEGATIONS – NADA Convention in USA & Other Dealer FADA also hosts Events that focus on the latest issues affecting
Conventions across the Globe dealers and manufacturers and the industry at large. FADA also
partners with International Dealer Associations to stay up to date on
FADA ACADEMY – Workshops, Online courses and in campus trends in Auto Retailing.
sessions for Dealer Principals, Senior level & Middle level
management and forshop floor personnel's at dealerships

FADA AWARDS – Recognizing dealerships excelling in various areas
of dealership operations

SEMINARS / WEBINARS – On all topics which are of interest to
Auto Retail, may it be GST, ST, Finance, Insurance, Various laws etc.

Some Successes are quieter than others. FADA’s Advocacy with Government & OEMs are often behind the
scenes but has a profound impact on areas such as Tax, Employment, Finance, Policies & Dealer Profitability.



February 2021 | Vol. 20 | Issue: XI
Printed and Published by Saharsh Damani on behalf of Federa on of
4 President’s Message Automobile Dealers Associa ons, 805, Surya Kiran, 19, K G Marg, New
Delhi-110 001.
FADA ini ates the first indigenous Dealer Sa sfac on Study 2021
Printed at Sita Fine Arts P Ltd, A-16, Naraina Indl Area - II, New Delhi
6 India Economics
Editor: Saharsh Damani
GDP Q3FY21 | Sluggishness in RBI Sectoral Non Food Credit Con nues |
Core Infla on Remains S cky | IIP Contracts Advertisers’ Index 60
8 Auto Retail Registration Kuttukaran Group 17
Provincial Group 21
FADA Releases February’21 Vehicle Registra on Data Shriram Transport Finance
United Group of Institutions
12 FADA Research
Editor, F A D A Journal and CEO, FADA
Introduc on to CAFE Norms in India
Mr Saharsh Damani
14 Demystifying GST T +91-11-6630 4852, 2332 0093, 2332 0095
E [email protected]
Interest Payable on Net Delayed GST Payment
Of ice Bearers Vice President
18 FADA News Mr Manish Raj Singhania
President E [email protected]
- FADA Odisha Chapter Organises Financier-Dealer Meet Mr Vinkesh Gulati
- FADA Appoints Mr Sanjay Aggarwal as Jammu Chapter Chairperson E [email protected] Treasurer
Mr Sai Giridhar
22 Govt Noti ication Secretary E [email protected]
Mr C S Vigneshwar
24 Insight E [email protected]

Connected A er-Sales: Towards A New Customer Journey

28 Opinion

6 Key CV Industry Trends & Analysis of Feb'2021 Sales

30 Business Achievers

Mrs Bectors & the Top Secret Sauce for Success

34 Automotive Technology

Connected Cars: Disrup on in Mobility

39 Competition Law Updates

40 Dealership Pro itability

Customer Experience Trends to Watch Out: A Wake Up Call for Car Dealerships

43 Perspective

The Indian Automo ve Industry: From Resilience to Resurgence?

48 Consumer Case Studies

52 Industry Track

Passenger Vehicle & Tractors Keep Trac on in Auto Retails

55 Chart of the Month

56 Statistics

Vehicle Sales, Y-o-Y Growth & Market Share - February 2021

President’s Message

FADA initiates the first indigenous Dealer Satisfaction Study 2021

vinkesh Gulati, president - FADA Dear Friends,

It will soon be a year since India went into a total lockdown to
control the spread of covid pandemic. While we braced the
lockdown successfully without too much collateral damage, it is
now me to buckle up and make Auto Industry once again the
engine for India’s economic revival. While tractors have been
performing excep onally well, passenger vehicle demand is now
showing good trac on. With vaccina on drive in full swing, I hope
things will start falling in place for the 2-wheeler segment and
slowly and steadily for 3-wheeler as well. Commercial vehicles
have been giving revival signals in bits and pieces though for the
en re segment to come in green might take some more me.

As you already know, your Federa on has ini ated the Annual
Dealer Sa sfac on Study Survey in associa on with PremonAsia.
The study is important as it will in essence help:

• To understand & quan fy Dealers expecta ons from OEMs

• To measure how OEMs perform in mee ng or do they exceed
Dealers expecta ons

• To iden fy gaps that impacts OEM- Dealer partnership across
all key business aspects

• To iden fy how Dealers foresee the evolving automo ve retail

• To provide ac onable insights that OEMs & Dealers can work
together in enhancing Dealer business rela onship

We understand the paucity of me we all face and hence, I assure
you that every effort is being made to make the survey crisp
though capturing our aspira ons and concerns. Please remember
that the survey will become live in April and con nue ll May’21.
The Survey report is slated to be released by the end of June/1st
week of July. More details will be shared subsequently as we are
ready to roll out the survey.

I hence seek support from all my Dealer friends to come forward
and take part in the survey, for it to be adequate from every
quarter and cu ng across all categories of vehicles. This will
hence make the survey fulfilling.

Keeping with FADA intent to find resolu ons to dealer concerns,
con nuous interac ons are done with the Central Ministry.

4 F A D A Journal February 2021 |

President’s Message

During the month, along with our Treasurer Mr. Sai vehicles for Individuals paying Income Tax & extending
Giridhar and CEO Mr. Saharsh Damani, I made a courtesy the deprecia on scheme for Corporates; and regarding
call on Mr. Amit Varadan, who has recently taken over Service Tax No ces being received by Auto Dealers on
from Mr. Priyank Bhar as Joint Secretary, MoRTH. discounts and incen ves received from the OEMs. The
Hon’ble Minister has assured to look into the industry’s
We appraised him on the issue of physical inspec on of concern and revert to FADA. A representa on for all the
new models which are not being allowed to be above-men oned issues was also submi ed to the
registered even though these vehicles have valid type Minister.
approval. I am happy to report that Mr. Varadan has sent
a le er to State Transport Authori es of J&K, Delhi, In Odisha, State Chairperson Mr Pradeep Agarwal and
Chha sgarh and Tamil Nadu and has once again advised State Regional Directors along with Odisha Automobile
to implement the system of registra on of vehicles Dealers Associa on (OADA) conducted a session with
based on produc on of type approval cer ficate and Finance Heads to discuss the challenges and
form 22. opportuni es facing the automo ve finance industry.
The program was well organised and a ended by large
In the ma er rela ng to FASTag wherein dealers while number of auto dealers.
moving unregistered vehicles have to pay double toll tax
since FASTag is currently issued on vehicle registra on In Rajasthan, FADA State Chairperson, Mr. Sharvik Shah
number, we have requested MoRTH to link the FASTag organised a mee ng for dealers to discuss the concerns
issuance with TC for dealers for ease of doing business. being faced in the State and how FADA as an organiza on
could play pivotal role in strengthening dealer
As men oned in my earlier message, Grow with Google community in the State. The mee ng was also a ended
Part 2 (an ini a ve jointly undertaken by Google, ASDC & by Mr. Ravi Jain, Transport Commissioner, Department of
FADA) for Sales & Marke ng professional in your Transport, Rajasthan. From the central team, Mr Sai
dealerships has been launched. Trust you have enrolled Giridhar, Treasurer FADA and Mr Saharsh Damani, CEO
your sales and marke ng team members for the FADA were also present.
program which is via series of 30 video sessions. If not
done, will request you to make your teams to join as it In West Bengal, FADA State Chairperson Mr. Siddharth
will educate them on how to use technology to drive Bhandari along with Regional Directors met with TCS,
growth which will be win-win for you and your teams. NIC, GRIPS, Finance and Transport department officials
The course is absolutely free and can be done at one’s and took up issues pertaining to technical glitches
own pace. being faced by the members while making online
payment on Vahan portal. Post the mee ng, I
FADA proposes to join the na on in celebra ng understand most of these issues have been resolved.
India@75 i.e. celebra ng 75 years of our na on’s
independence. As men oned earlier, GOI is celebra ng As I conclude, I once again reiterate that Dealer
the same from August 15, 2021 ll August 15, 2022. I Sa sfac on Study (DSS) 2021 is done by the dealers
seek from you inputs regarding the ini a ves which can – for the dealers – from the dealers. Now the onus is
be taken up as a community across the country upon each one of us to par cipate in all honesty and
showcasing our solidarity and commitment to our also encourage our fellow dealer friends to
na on. par cipate in full strength to make this survey a huge
Coming to State ac vi es, Dr. MP Shyam, Chairperson
FADA Karnataka had the opportunity to interact with the Warm Regards,
Honorable Finance Minister Smt. Nirmala Sitharaman ji
in person where upon he discussed industry concerns Vinkesh Gula ,
rela ng to: RBI Circular on current accounts; President FADA
Introduc on of benefits for claiming deprecia on on | February 2021 F A D A Journal 5

India Economics

GDP Q3FY21 | Sluggishness in RBI Sectoral Non Food Credit
Continues | Core Inflation Remains Sticky | IIP Contracts

Excluding services, some by 7.7% fall in ‘trade, hotels, points that it is the informal con nue its 5-month streak of
recovery back on track transport, storage and sector that con nues to suffer. repor ng YoY de-growth.
communica on’- a category Investments clocking a growth Services (28% mix) and
Real Gross Value Addi on which has failed to revive and of 2.5% YoY and 13% QoQ were Personal Loans (29% mix) also
(GVA) came in at 1% YoY, with would probably need a a posi ve surprise, outlining reported mul -month low
gap between GVA and GDP at successful vaccina on drive again the return of capex cycle, growths.
60bps. Agriculture and allied plus sustained reopening for coupled with op mism of a
services have grown by 3.9% in recovery to pre-covid levels. be er future ahead. Even though the pace of
Q3, vs 3.4% in Q2. growth in the Personal Loans
Manufacturing ac vity has Investments surprise on the RBI sectoral non-food credit: sector has slowed down on a
clocked growth at 1.6% YoY, upside Jan’21 YoY basis (9.1% in the month of
aided purely by nega ve base. January vs. 9.5% in the month
On QoQ basis, manufacturing On the expenditure front, the Sluggishness in the non-food of December), the monthly
has instead seen an 80bps nega ve surprise comes from credit growth con nues for rate of growth con nues to
contrac on. There’s hope for Government consump on January 2021 at 5.7% YoY vs. inch upwards (2.3% on MoM
revival with core data turning expenditure at -1.1% YoY, even 6.0% and 5.9% YoY growth for basis in Jan’21 vs 0.7% for the
posi ve in Jan’21 but the when the center’s revenue the month of November and month of December’20). The
recovery con nues to be expenditure has increased by December respec vely. incremental disbursements for
uneven. Construc on has 19% YoY in Q3, hin ng towards Growth reported in the month the month of January are
grown by 6% YoY and a strong a possible rollback of of January’21 is one of the already at around 2/3rd of the
22% in QoQ, which is also in expenditure by the states and lowest growths registered in incremental disbursements for
sync with ‘Financial Services, local bodies. Real private last 40 months. The growth has all of Q3, sugges ng a strong
Real Estate and professional consump on has contracted remained within a ght range overall growth for this segment
services’ clocking a growth of by 1% YoY and has shown a of 5.5-6% over the last 6 in Q4. Within Personal Loans,
6.6% YoY. Clearly, there is a growth of mere 1% on nominal months, and January Vehicle Loans grew 7.1% YoY
posi ve capex cycle in play. terms, even when top line of represents yet another month and 2.5% MoM showing
Overall, however, services Autos + Consumer Durables where it failed to cross the 6% healthy numbers.
con nue to contract by 1%, led exceeded 10% YoY, which again mark. Industries (30% mix)

GDP numbers are reflec ng the growing inequality between the formal and informal sector

Source: CEIC & FADA Research

6 F A D A Journal February 2021 |

India Economics

Core infla on remains s cky, is high owing to ‘services’, co nt r i b u te s ~ 7 7 % to I I P, transport equipment’(+4.7%)
watch the fuel! the sub-category, ‘transport contracted by 2% in Jan’21, con nued to be the out-
and communica on’ is up while the contrac on in performers.
Fuel and light infla on 200 bps MoM (11.4% in Feb Mining slowed to -3.7% (from -
increased to 3.9% in vs 9.3% in Jan) driven by 4.2% in Dec) and electricity On the usage front, capital
February (vs 3.5% in Jan). 20%+ YoY increase in petrol con nued to clock 5%+ growth goods falling by ~10% is
Indian basket of crude and diesel. rates. Of the 23 manufacturing surprising, as the general
averaged US$ 61.4/barrel in industries, only 5 recorded upli in investments and
Feb vs US$ 54.6/barrel in Jan, IIP contracts but base effect is growth in Jan’21. government’s capex efforts
clearly showing that higher cri cal have found no reflec on on
energy prices have skewed ‘Chemicals and products’ the IP print. Infra and
the infla on readings. Core While headline IIP contracted (+3.1%), ‘Rubber and plas c construc on goods con nue
infla on at 5.9% is at a two- by 1.6% in Jan’21, it comes on products’(+6.2%), ‘Basic to be mildly posi ve at
year high! The core infla on the base of 2% growth in metals’(+4.2%) and ‘Other 27bps.
Jan’20. Manufacturing, which

Infla on Inches Up Further

Trends In IIP And Its Components

Source: CEIC & FADA Research | February 2021 F A D A Journal 7

Auto Retail Registration

FADA Releases February’21 Vehicle Registration Data

Ÿ February registra ons con nue to fall by -13.43% YoY.

Ÿ While Tractors con nued its posi ve momentum by growing 18.89% YoY, Passenger Vehicles also showed double digit
growth at 10.59% YoY. This growth was majorly due to low base of last year as India had started transi oning from BS-4 to
BS-6 emission norms.

Ÿ On a YoY basis, 2W, 3W and CV con nued their fall by -16.08%, -49.65% and -29.53% respec vely.

Ÿ PV wai ng period con nued to remain as high as 8 months as scarcity of semiconductors con nued to linger around.

Ÿ Dealer inventory for PV and 2W remained in range of 10-15 and 30-35 days.

Ÿ Auto Retail Industry con nues to await the fine prints of Voluntary Scrappage Policy.

Ÿ The industry also urges Union Government to intervene and solve the semiconductor issue which is hampering Automobile
manufacturing & sales, thus threatening post pandemic economic recovery.

All-India Vehicle Registra on Data for February’21 with YoY Comparison

Wheeler Wheeler
VEHICLE Jan’21 Jan’20
Feb’21 Feb’20 Feb’21 Feb’20 60,754 54,662
Feb’21 Feb’20 10,91,288 13,00,364 33,319 66,177
2,54,058 2,29,734 - 16.08% - 49.65%



Feb’21 Feb’20
59,020 83,751

- 29.53%

Light Commercial mEDIUM Commercial hEAVY Commercial oTHERS
Vehicle Vehicle Vehicle
Feb’21 Feb’20
Feb’21 Feb’20 Feb’21 Feb’20 Feb’21 Feb’20 4,004 3,353

34,898 51,609 3,785 4,528 16,333 24,261 19.42%

- 32.38% - 16.41% - 32.68% Source: FADA Research

8 F A D A Journal February 2021 |

Auto Retail Registration

OEM wise Market Share Data for the Month of February’21 with YoY comparison

Passenger Vehicle (PV)

OEM Name Feb'21 Market Share Feb’20 Market Share
(%), Feb’21 (%), Feb’20
HYUNDAI MOTOR INDIA LTD 1,19,246 46.94% 35,337 15.38%
TATA MOTORS LTD 12,978 5.65%
KIA MOTORS INDIA PVT LTD 43,873 17.27% 10,307 4.49%
TOYOTA KIRLOSKAR MOTOR PVT LTD 20,948 8.25% 6,431 2.80%
RENAULT INDIA PVT LTD 14,828 5.84% 8,626 3.75%
FORD INDIA PVT LTD 3,662 1.59%
MG MOTOR INDIA PVT LTD 14,683 5.78% 2,505 1.09%
NISSAN MOTOR INDIA PVT LTD 10,055 3.96% 1,963 0.85%
BMW INDIA PVT LTD 8,185 3.22% 755 0.33%
JAGUAR LAND ROVER INDIA LTD 6,765 2.66% 298 0.13%
VOLKSWAGEN AG/INDIA PVT LTD 3,646 1.44% 1,379 0.60%
AUDI AG 3,619 1.42% 314 0.14%
SKODA AUTO INDIA/AS PVT LTD 2,525 0.99% 1,341 0.58%
BENTLEY MOTORS LTD 2,447 0.96% 4 0.00%
Others 626 0.25% 1,865 0.81%

307 0.12%

188 0.07%

184 0.07%

140 0.06%

88 0.03%

47 0.02%

33 0.01%

25 0.01%

22 0.01%

3 0.00%

2 0.00%

2 0.00%

1 0.00%

943 0.37%

Total 2,54,058 100.00% 2,29,734 100.00% | February 2021 F A D A Journal 9

Auto Retail Registration

OEM wise Market Share Data for the Month of February’21 with YoY comparison

Two Wheeler (2W)

OEM Name Feb’21 Market Share Feb’20 Market Share
(%), Feb’21 (%), Feb’20
4,93,121 37.92%
HERO MOTOCORP LTD 3,50,533 32.12% 3,12,939 24.07%
1,82,807 14.06%
HONDA MOTORCYCLE AND SCOOTER INDIA (P) LTD 2,97,029 27.22% 1,51,163 11.62%
TVS MOTOR COMPANY LTD 1,66,089 15.22% 56,506 3.68%
47,798 3.34%
BAJAJ AUTO LTD 1,20,317 11.03% 43,380 0.36%
ROYAL-ENFIELD (UNIT OF EICHER LTD) 52,713 4.83% 4,696 0.02%
4,142 0.04%
307 0.01%
INDIA YAMAHA MOTOR PVT LTD 44,413 4.07% 466 0.02%
256 0.00%
PIAGGIO VEHICLES PVT LTD 4,583 0.42% 0.00%
75 0.19%
CLASSIC LEGENDS PVT LTD 2,191 0.20% 215 100.00%

BMW INDIA PVT LTD 242 0.02% 28 Market Share
4 (%), Feb’20





Others including EV 5,753 0.53%

Total 10,91,288 100.00%

Commercial Vehicle (CV)

OEM Name Feb’21 Market Share
(%), Feb’21

TATA MOTORS LTD 24,709 41.87% 36,410 43.47%
MAHINDRA & MAHINDRA LTD 11,993 20.32% 21,198 25.31%
ASHOK LEYLAND LTD 14.97% 11,967 14.29%
MARUTI SUZUKI INDIA LTD 3,694 6.26% 4,422 5.28%
SML ISUZU LTD 1.11% 1,089 1.30%
Others 654 0.79% 1.00%
Total 465 7.27% 837 4.66%
4,291 100.00% 3,899 100.00%
59,020 83,751

10 F A D A Journal February 2021 |

Auto Retail Registration

OEM wise Market Share Data for the Month of February’21 with YoY comparison

OEM Name Three-Wheeler (3W) Market Share Feb’20 Market Share
(%), Feb’21 (%), Feb’20
BAJAJ AUTO LTD Feb'21 27,989
PIAGGIO VEHICLES PVT LTD 36.77% 13,042 42.29%
MAHINDRA & MAHINDRA LTD 12,253 15.55% 19.71%
ATUL AUTO LTD 5,180 4,822
TVS MOTOR COMPANY LTD 1,387 4.16% 4,182 7.29%
Others including EV 1,332 4.00% 1,175 6.32%
860 2.58% 14,967 1.78%
36.94% 22.62%

Total 33,319 100.00% 66,177 100.00%

OEM Name Tractor Market Share Feb’20 Market Share
(%), Feb’21 (%), Feb’20
INTERNATIONAL TRACTORS LTD 13,492 16.61% 6,181 17.76%
ESCORTS LIMITED (AGRI MACHINERY GROUP) 10,191 13.76% 5,769 11.98%
TAFE LTD 11.60% 4,931 11.18%
EICHER TRACTORS 7,118 3,402 9.56%
CNH INDUSTRIAL (INDIA) PVT LTD 6,420 8.35% 1,924 8.10%
VST TILLERS TRACTORS LTD 3,944 3.97% 354 3.73%
INDO FARM EQUIPMENT LTD 1,098 0.64% 187 0.69%
Others 390 0.39% 1,631 0.36%
320 0.22% 0.12%
239 3.26% 3.16%

Total 61,351 100.00% 51,602 100.00%

Source: FADA Research

1. The above numbers do not have figures from AP, MP, LD & TS as they are not yet on Vahan 4.
2. Vehicle Registra on Data has been collated as on 07.03.21 in collabora on with Ministry of Road Transport & Highways, Government of India and

has been gathered from 1,274 out of 1,481 RTOs.
3. CV is subdivided in the following manner

a). LCV – Light Commercial Vehicle (incl. Passenger & Goods Vehicle)
b). MCV – Medium Commercial Vehicle (incl. Passenger & Goods Vehicle)
c). HCV – Heavy Commercial Vehicle (incl. Passenger & Goods Vehicle)
d). Others – Construc on Equipment Vehicles and others | February 2021 F A D A Journal 11

FADA Research

Introduction to CAFÉ Norms in India

Overview • The Corporate Average April 2017, which targets to • Phase – II: Carbon dioxide
Fuel Efficiency / Economy increase the fuel efficiency of emission target of 113
In today’s fast pace world, the (CAFÉ standards); vehicles on road by 35% by gram/Km2022-23onwards.
adop on of addi onal 2030. MoRTH stands as the
interna onal fuel prac ces is • Labelling of personal nodal agency responsible for The broader idea behind CAFÉ
in full swing in India with the vehicles with informa on monitoring and repor ng a norms is to push manufacturers
government asking on the fuel consump on of summary of annual fuel to achieve fuel efficiency
automakers to proceed the care rela ve to other consump on by automobile targets by producing and
towards BS-VI and CAFE models with similar weight. manufacturers at the end of selling more fuel-efficient
norms. These two norms are each fiscal year. models, including EVs. Since,
nearly parallel to each other, In India, CAFÉ standards were the norms were applicable for
majorly aimed at bringing being firstly no fied by the The Regula on has been petrol, diesel, LPG and CNG
massive fuel changes in Union Ministry of Power (MoP) introduced in two target passenger vehicles resul ng in
vehicles. Therefore, India’s under the Energy Conserva on phases: serving the twin purposes of
projected corporate average Act, 2001. Later, the regula on reducing dependence on oil
fuel efficiency (CAFE) norms was in accordance with the • Phase - I: Carbon dioxide for fuel and controlling
for all carmakers, will act as a fuel consump on standards of emission target of 130 pollu on in the country.
key to decode the latest 2015 came into force from 1st gram/Km by 2022-23
realignment change in the
global auto industry. So, as Maker Wise Annual Corporate Average CO₂ Performance on the
expected from 1 April’22, India Basis of CAFÉ 1 and CAFÉ 2 Targets, FY’20
will adopt CAFE, or corporate
average fuel efficiency norms, Source: MoRTH, FADA Research
which would require cars to be
30% or more fuel-efficient
from 2022 and 10% or more
between 2017 and 2021.

Need for CAFÉ Regula ons

In the earlier mes, Indian
vehicles used to have
confiden al fuel economy
levels, as there was no
mandate or official rule for
vehicle makers to disclose the
exact rate of fuel consump on
for their models. But, now
India has an approach towards
the reduc on in fuel
consump on:

12 F A D A Journal February 2021 |

FADA Research

Significance of CAFÉ Norm the auto industry. Moreover, hybrid vehicles over the medium the breathing of cleaner air &
the Na onal Auto Policy (dra ) to long-term to act by the norms. makes the environment greener.
In comparison with developed put out in early 2018 calls for
countries, vehicle penetra on developing a roadmap for the Future Outlook - The Road CAFÉ regula ons majorly focus
in India is s ll low and many of reduc on in CO₂ emissions Ahead: on reducing CO₂ emissions and
the global auto manufacturers through CAFÉ regula ons. BS-VI focuses on the reduc on
are be ng comprehensively The Indian government has of other harmful exhaust from
over India. The pollu on caused The Auto Policy also an cipates already started taking posi ve vehicles. Accompanied by the
by the escala ng number of economic penal es for steps to have a clean and mass shi to use of the electric
vehicles on road has been manufacturers who fail to meet greener environment by vehicle will also bring down air
worsening the air quality in corporate average targets and curbing vehicular pollu on pollu on substan ally and to
many ci es. Therefore, the foresees a system where credits which will enhance the quality boost manufacturing and sales
Indian government has planned under the scheme (for achieving of life shortly. By implemented of EVs, the government has
a solu on by upgrading to be er than mandated fuel BS-VI emission norms from already started providing
stricter fuel standards to tackle efficiency) can be banked and April’20 onwards and the plan incen ves under the FAME
air pollu on, as CAFE traded. Consequently, stricter to shi to the mass use of EVs (Faster Adop on and
regula ons assume importance CAFE targets will also lead by 2030 coupled with the Manufacturing of Hybrid &
in the light of their ability to manufacturers to shi towards upcoming implementa on of Electric Vehicles) scheme.
reduce the carbon footprint of the adop on of electric or strong CAFÉ 2 regula on will help in

Manufacturer Wise Annual Fuel Consump on Compliance Report, FY’20

Source: MoRTH, FADA Research
Note: For small volume manufacturers op ng for alterna ve target for the repor ng period 2018-19: T=P; Credits=Debits=0 | T=Corporate Average CO₂ Target
(T) (g/km) and P=Corporate Average CO₂ Performance (P) (g/km) | Values are rounded to three decimal places. | February 2021 F A D A Journal 13

Demystifying GST

Interest Payable on Net Delayed GST Payment

DR SANJIV AGARWAL Under GST, payment of tax has shall for the period for 18.04.2019 in WP No. 44517 of
Chartered Accountant to be accompanied by a return. which the tax or any part 2018. The judgment analyzed
M/s Agarwal Sanjiv & GSTR 3B is a simple return form thereof remains unpaid, the provisions of sec on 50
Company introduced by the CBIC which pay, on his own, interest at and came to the conclusion
is to be filed by 20th of the such rate, not exceeding that interest under sec on 50
MS NEHA SOMANI following month. Wherein eighteen per cent., as may of the CGST Act, 2017 shall be
Chartered Accountant only total values for each field be no fied by the payable on the gross amount
M/s Agarwal Sanjiv & have to be provided, this value Government on the of tax payable i.e., on the ITC
Company must be for the month for recommenda ons of the por on also.
which return is being filed. Council.
However, GSTR-3B can be However, the High Court of
submi ed only a er making (2) The interest under sub- Telengana took note of the
payment of GST due. If the sec on (1) shall be Press Release of the GST
return is filed late, GSTN calculated, in such Council proceeding of 31st
automa cally reflects the late manner as may be mee ng held on 22.12.2018 as
fee to be paid whereas interest prescribed, from the day extracted below:
has to be computed manually. succeeding the day on
which such tax was due to “The GST Council in its 31st
Under sec on 43A of CGST Act, be paid. mee ng held today at New
ITC can be availed as Delhi gave in principle
prescribed in Rules 85 to 87 It is immaterial whether the approval to the following
under which electronic credit self-assessed tax is paid amendments in the GST Acts:
ledger is debited and through ITC or cash. Once the
electronic liability register is payment is made beyond the 1. Crea on of a Centralised
credited on the basis of returns prescribed date, interest Appellate Authority for
filed. Any delay in payment liability is a racted on the Advance Ruling (AAAR) to
would a ract interest under en re tax amount. It is deal with cases of
sec on 50 of the CGST Act, per nent to men on that the conflic ng decisions by
2017. amount of the interest payable two or more State
in terms of the sec on 50 of Appellate Advance Ruling
Under sec on 49, payment of the CGST Act, 2017 would Authori es on the same
tax is required to be made on automa cally become
the basis of self assessment recoverable arrears, which 2. Amendment of sec on
and the ITC is credited to needs to be recovered in terms 50 of the CGST Act to
assessee’s electronic credit of sec on 79 of CGST Act, provide that interest
ledger as per sec ons 41 and 2017. should be charged only
43A on the basis of return on the net tax liability of
maintained by GSTIN. This Interpreta on of Sec on 50 in the taxpayer, a er taking
amount can be used for Megha Engineering & into account the
payment of tax. Infrastructure Ltd. [(2019) 26 admissible input tax
GSTL 18; (2019) 4 TMI 1319; credit, i.e., interest would
Interest liability under Sec on (2019) 104 393 be leviable only on the
50 of the CGST Act, 2017 (Telangana)] amount payable through
the electronic cash
According to sec on 50: The interpreta on of sec on ledger.
50 was made by Telangana
(1) Every person who is liable High Court, Hyderabad Bench The above recommenda ons
to pay tax but fails to pay in the case of M/s Megha of the Council will be made
the tax or any part thereof Engineering & Infrastructure effec ve only a er the
to the Government within Ltd. vide Order dated necessary amendments in the
the period prescribed, GST Acts are carried out.”

14 F A D A Journal February 2021 |

Demystifying GST

It is evident from the above of interest calcula on, it is interpreta on can be given to funds represen ng
and even the Court has clarified that- the sec on as a whole.” tax component ll
recognized this fact that this such me the Return
has already been 2/n The GST laws, as of now, Thus, proviso ought to have is filed accompanied
recommended by GST Council permit interest calcula on retrospec ve applica on w.e.f. by the remi ance of
but is s ll on paper as it is not on delayed GST payments 1.7.2017 only tax.
yet part of the law. on the basis of gross tax
liability. This posi on has Its amply clear from the • Availability of ITC runs
Thus, the proposal to charge been upheld in the aforemen oned counter to this, as it
interest on net of ITC value Telangana High Court’s pronouncements that the connotes the
was recommended by the 31st decision dated inten on of the Government enrichment of the
GST Council in its mee ng held 18.04.2019. and GST Council is not to levy State, to this extent.
on 22.12.2018. interest on gross liability but Sec on 50 which is
3/n In spite of this posi on of only on the actual tax liability specifically intended
Further, in 39th GST Council law and Telangana High a er adjus ng the due credit to apply to a state of
mee ng held on 14.03.2020, it Court’s order, the Central on account of eligible input tax deprival cannot
was recommended that Government and several audit. therefore, apply in a
Interest for delay in payment State Governments, on the situa on where the
of GST is to be charged on the recommenda ons of GST Post the Telangana High Court State is possessed of
net cash tax liability w.e.f. Council, amended their Judgment, there have been sufficient funds to the
01.07.2017 (Law to be respec ve CGST/SGST Acts various judicial credit of the
amended retrospec vely). to charge interest on pronouncements by High assessee.
delayed GST payment on Court and Supreme Court
Scenario post Megha the basis of net tax wherein it has been held that • The proper
Engineering Judgment liability. interest on delayed payment, if applica on of Sec on
any is payable on amount net 50 is one where
As a consequence of Telangana 4/n Such amendment will be of ITC only. interest is levied on a
High Court Order, the made prospec vely. The belated cash
Department has came into States of Telangana and Various judicial pronounce- payment but not on
ac on and has started issuing West Bengal are in process ments holding interest liability ITC available with the
no ces for recovery of interest of amending their State on net amount Department to the
on gross liability to business GST Acts. A er the process credit of the
en ty across the country of amendments is (1) M/s. Refex Industries assessee. The later
sta ng that interest is payable complete, the changed Limited, M/s. Sherisha being available with
on the ITC component also in provisions can be put in Technologies Pvt. Ltd. v. the Department is,
terms of sec on 50 read with opera on for the en re The Assistant Commissioner thus, neither belated
Rule 85, 86 and 87. country.” of CGST & Central Excise, nor delayed.
The Superintendent of
In con nua on to this, the In Allied Motors Ltd. v. CIT [CA Central Tax, Bank • Proviso to Sec on
CBIC through its official Twi er No. 3175/91 and 2380/91] Managar, ICICI Bank 50(1), according to
handle recently tweeted series Supreme court held that “a (2020) 2 TMI 794 (Madras) which interest shall
of tweets on 15.02.2020, as proviso which is inserted to be levied only on that
extracted hereunder: remedy unintended Hon’ble Madras High part of the tax which
consequences and to made Court vide its Order dated is paid in cash, has
“1/n There are some the provision workable, a 06.01.2020 in WP(C) No. been inserted with
discussions in social media proviso which supplies an 23360 has held that: effect from
w.r.t. interest calcula on obvious omission in the 01.08.2019, but
on delayed GST payments sec on and is required to be • The use of the word clearly seeks to
post a few media reports read into the sec on to give it a 'delayed' in sec on correct an anomaly in
regarding Rs. 46,000 Cr reasonable interpreta on , 50 of CGST Act, 2017 the provision as it
interest on the delayed requires to be treated as connotes a situa on existed prior to such
GST payments to be retrospec ve in opera on so of deprival, where inser on. It should
collected by tax that a reasonable the State has been thus be read as
authori es. On this issue deprived of the | February 2021 F A D A Journal 15

Demystifying GST

clarificatory and Poonamallee Division , the pe oner within a “sec ons 92 to 112 and
opera ve Chennai (2021) 44 GSTL period of four weeks from sec on 114 shall come into
retrospec vely. 126; (2020) 11 TMI 107; date of uploading of the force on such date as the
(2020) 121 order. It was held that Central Government may, by
(2) M/s. Landmark Lifestyle 135 (Madras) proviso to sec on 50 of no fica on in the Official
Cars Pvt. Ltd. v. Union of CGST Act is opera ve Gaze e, appoint.
India [(2019) 5 TMI 1608 In this case , bunch of retrospec vely with
(Delhi)] pe ons were decided effect from 01.07.2017, Amendment by Finance Bill,
wherein the pe oner's and no interest is liable to 2021
Hon’ble Delhi High Court have challenged the levy be levied on tax remi ed
vide its Order dated interest on remi ances of by reversal of available The Union Budget for financial
27.05.2019 in WP(C) No. tax by adjustment of ITC. Accordingly, the writ year 2021-22 has been laid in
6055/2019 in case of M/s available ITC on ground pe ons were allowed. Parliament on 1st February,
Landmark Lifestyle Cars that (i) the credit was 2021.
Pvt. Ltd., Delhi had stayed available even prior to Amendment of Sec on 50 of
the charging of interest the arising of the output CGST Act, 2017 by Finance Act, It proposes to amend sec on
under sec on 50 by tax liability and hence the 2019 50(1) by way of clause 103.
sta ng that no coercive ques on of delay does Accordingly,
ac on to be taken against not arise (ii) no The Finance (No. 2) Bill, 2019
the pe oner for non- opportunity was granted vide clause 100 proposed to • Sec on 50 of CGST Act,
payment of the interest prior to raising of the amend sec on 50 by inser ng 2017 provides for interest
amount which indicates impugned demand and following proviso to sec on on delayed payment of
that the issue is in dispute. consequen al 50(1) of CGST Act, 2017: tax.
proceedings (iii) interest
(3) Sunrise Autoworld Pvt. is a measure of “Provided that the interest on • Finance Bill, 2021 has
Ltd. v. Commissioner, compensa on and since tax payable in respect of proposed to subs tute
CGST ITC is already available in supplies made during a tax proviso to sec on 50(1) so
the electronic ledger, period and declared in the as to charge interest on
On 02.03.2020, the there is no ques on of return for the said period net cash liability.
Hon’ble High Court of the same being due to the furnished a er the due date in
Delhi at New Delhi, has in revenue (iv) the proviso accordance with the provisions • Thus, interest shall be
a pe on challenging the to sec on 50 which states of sec on 39, except where payable on that por on of
demand no ce issued by that interest shall be such return is furnished a er the tax which is paid by
Department over levied only on part paid in commencement of any debi ng the electronic
payment of interest on cash has been inserted to proceedings under sec on 73 cash ledger.
gross tax liabilty, granted set right an anomaly and or sec on 74 in respect of the
stay in the ma er of is therefore retrospec ve said period, shall be levied on • This will be effec ve
Sunrise Autoworld Pvt. in opera on. The that por on of the tax that is retrospec vely w.e.f.
Ltd. v. Union of India. The pe oners submi ed paid by debi ng the electronic 01.07.2017 implying that
Pe oner has already that the interest liability cash ledger.”. Department will have to
paid and deposited rela ng to belated forego such demands
admi ed interest payable payment of tax both by The Finance (No. 2) Bill, 2019 raised ll now and interest
on delayed cash payment cash and reversal of ITC was presented in Lower will only be payable on tax
of tax liability. However, has been coercively House of the Parliament on liability payable in cash.
the Respondent has recovered. In light of 05.07.2019 proposing, inter
issued demand no ce decision as aforesaid, a alia, to amend sec on 50 of Epilogue
seeking to recover interest direc on is issued to the CGST Act, 2017. The bill was
on gross tax liability appropriate authority to passed in both Houses of the It has been proposed to
arising due to belated compute the interest parliament and received the subs tute the proviso to
filing of statement in Form liability for belated assent of the President on Sec on 50(1) of the CGST Act,
GSTR-3B. remi ances of cash and 01.08.2019. The clause (b) so as to charge interest on
refund the balance of the sec on 2 of Finance Act, delayed payment of GST on net
(4) Maansarovar Motors P. amount collected from 2019 mandated that tax liability only and that too
Ltd. v. Ass . Commr, retrospec vely with effect
from the July 1, 2017.

16 F A D A Journal February 2021 |

FADA in News

FADA Odisha Chapter Organises Financier-Dealer Meet

State Chairperson Mr Pradeep Agarwal organised Financier- Dealer Meet to discuss the challenges
and opportunities in Automotive Finance. The event witnessed 30 Finance Companies taking part!

FADA Appoints Mr Sanjay Aggarwal as Jammu Chapter Chairperson

18 F A D A Journal February 2021 |

FADA in News

Business Standard

Times of India The Financial Express
The Hindu
The Mint

Punjab Kesari Millenniumpost

Amar Ujala Telangana Today The Economic Times | February 2021 F A D A Journal 19

FADA in News

Dainik Bhaskar

Deccan Herald

The Economic Times, Kochi Edition

Business Standard - Hindi Jagbani

Hindustan Times

Mangalam Kerala Koumudi Mathrubhoomi

20 F A D A Journal February 2021 |

Govt. Notification


PART II—Sec on 3—Sub-sec on (I)

New Delhi, the 2nd March, 2021

G.S.R. 148(E). — Whereas, the dra rules further to amend the Central Motor Vehicles Rules, 1989 were published, as required under
sub-sec on (1) of sec on 212 of the Motor Vehicles Act, 1988 (59 of 1988), vide no fica on of the Government of India in the Ministry
of Road Transport and Highways G.S.R 757(E), dated the 11th December,2020, in the Gaze e of India, Extraordinary, Part II, Sec on
(3), Sub-sec on (i) invi ng objec ons and sugges ons from persons likely to be affected before the expiry of the period of thirty days
from the date on which copies of the Gaze e containing the said no fica on were made available to the public;
And whereas, copies of the said Gaze e no fica on were made available to the public on 11th December, 2020;
And whereas, objec ons and sugges ons received from the public in respect of the said dra rules have been duly considered by the
Central Government;
Now, therefore, in exercise of the powers conferred by sub-sec on (1) of sec on 110 of the Motor Vehicles Act, 1988 (59 of 1988), the
Central Government hereby makes the following rules further to amend the Central Motor Vehicles Rules, 1989, namely:-
1. Short tle and commencement - (1) These rules may be called as the Central Motor Vehicles (Third Amendment) Rules, 2021.

(2) Save as otherwise provided in these rules, they shall come into force on the date of their publica on in the Official Gaze e
2. In the Central Motor Vehicles Rules, 1989, a er sub-rule (9) of rule 125, the following sub-rule shall be inserted, namely:-

“(9A) Notwithstanding anything contained in sub rule (9), vehicles manufactured on and a er the 1st Day of April, 2021, in the
case of new models, and 31st day of August, 2021, in the case of exis ng models, shall be fi ed with airbag for the person
occupying the front seat, other than the driver and the requirement for such airbag shall be as per AIS 145, as amended from me
to me, ll the corresponding Bureau of Indian Standards (BIS) specifica ons are no fied under the Bureau of Indian Standards
Act, 2016 (11 of 2016).”

[F.No. RT-11028/16/2016-MVL]

Note : The principal rules were published in the Gaze e of India, Extraordinary, Part-II, Sec on 3, Subsec on (I), vide no fica on

number G.S.R. 590(E), dated the 2nd June, 1989 and last amended vide no fica on number G.S.R. 21(E), dated the 13th
January, 2021.

22 F A D A Journal February 2021 |

Govt. Notification


PART II—Sec on 3—Sub-sec on (I)

New Delhi, the 12th March, 2021

G.S.R. 177(E). — The following dra of certain rules further to amend the Central Motor Vehicles Rules, 1989, which the Central Government
proposes to make in exercise of the powers conferred by sub sec ons (7) and (10) of sec on 41 of the Motor Vehicles Act, 1988 (59 of 1988), is
hereby published as required by sub-sec on (1) of sec on 212 of the said Act for informa on of all persons likely to be affected thereby; and
no ce is hereby given that the said dra rules shall be taken into considera on a er the expiry of thirty days from the date on which the
copies of this no fica on, as published in the Official Gaze e, are made available to the public;
Objec ons and sugges ons to these dra rules, if any, may be sent to the Joint Secretary (MVL, Transport & Toll), Ministry of Road Transport
and Highways, Transport Bhawan, Parliament Street, New Delhi-110 001 or on the email: [email protected];
The objec ons or sugges ons which may be received from any person in respect of the said dra rules before the expiry of the aforesaid
period will be considered by the Central Government.

Dra Rules
1. Short Title and commencement.-(1) These rules may be called the Central Motor Vehicles (……Amendment) Rules, 2021.

(2) They shall come into force on the 1st day of April, 2022.
In Central Motor Vehicle Rules, 1989, a er rule 52, the following rule shall be inserted, namely:-
“52A: Non-Renewal of Cer ficate of registra on of Government Vehicles: Notwithstanding anything contained in Rule 52, in the case of
motor vehicles, owned by-
(i) Central Government and its Departments;
(ii) State/UT Governments and their Departments;
(iii) Local Government Ins tu ons namely, the Municipal Corpora ons or Municipali es or Panchayats;
(iv) State Transport Undertakings established under the Road Transport Corpora on Act, 1950 (64 of 1950) and the Companies Act,

2013 (18 of 2013);
(v) Public Sector Undertakings;
(vi) Autonomous bodies with the Central Government and State Governments,
the cer ficate of registra on shall not be renewed a er the lapse of fi een years, as provided in Sub sec on (7) of Sec on 41, from the
date of such cer ficate.”

[F.No. RT-3013/1/2021-T]
Note : The principal rules were published in the Gaze e of India, Extraordinary, Part II, Sec on 3, Sub-sec on (i) vide no fica on number
G.S.R. 590(E), dated the 2ndJune, 1989 and last amended vide no fica on number G.S.R. _____(E) dated ______. | February 2021 F A D A Journal 23


Connected After-Sales: Towards A New Customer Journey

- BearingPoint

For OEMs, a er-sales cannot and their customers stay in Furthermore, OEMs are than one in three drivers (35%)
be an a erthought. Via their touch, providing a new defending their a er-sales prefer IAM workshops. This
affiliated workshops, they communica on channels such businesses from the propor on rises to more than
boost profits through sales of as the car’s human–machine independent a er-market four in 10 (42%) if we look at
parts and vehicle services. By interface (HMI). Connected (IAM). According to new drivers under the age of 35.
engaging with customers a er technologies also provide BearingPoint research (note 1)
the sale, they also build fresh insight into customer – which surveyed more than In this ar cle, we describe how
stronger rela onships and line driving habits, which helps 1,000 Audi, BMW and OEMs can out-compete the
up the new vehicle sales of OEMs deliver a more effec ve Mercedes owners in Spain, IAM by building an experience
tomorrow. maintenance service. Germany and the UK – more and suite of services that make
be er use of the data created
by connected cars. In turn,
they can unlock new revenues
and achieve higher u liza on
and reten on through their

Stage one: insight for a
proac ve rela onship

At the first stage of the a er-
sales journey, the customer
will be informed that it’s me
for a service – either because a
certain number of miles or

me period has been clocked,
or because the onboard
so ware or a service expert
has noted the car needs an
(unexpected) service.

For a significant minority of
drivers in our survey, this is a
make-or-break moment: four
in 10 (39%) compare different

Yet the a er-sales market is 5 Stages in After-Sales Customer Journey
being shaken up by several
important trends. Firstly, the
connected features in today’s
vehicles enable remote access
to the OEM. This makes it
easier for owners and drivers
to plan maintenance and
repair work, and means as well
that the vehicle’s so ware can
be updated over-the-air to
enable remote repairs and
new services.

Secondly, connected features
are transforming how OEMs

24 F A D A Journal February 2021 |


Figure:1 - Comparing offers and personalisation much be er idea of the me
their vehicle will spend in the

Furthermore, the OEM can
ensure the workshop has the
right parts in stock before the
car arrives for its service,
reducing the amount of me
the service will take.

Stage three: the service

service offers before making offers that are exclusive to the es mate of costs before they Customers expect a posi ve
an appointment at a workshop; driver’s needs. In our research, book a service at a workshop. It experience when they take
& younger and price- conscious a clear majority (70%) of stands to reason that providing their car into the workshop.
customers are even more likely respondents say they value a full breakdown of service When choosing where to have
to shop around. personalized offers for their dura on, price and costs their car serviced, more than
vehicle. By combining vehicle upfront would improve the half say their choice is guided
How? Ul mately OEMs need data with personal informa on chances of them booking with by service experience. This is
to look at the customer – such as age, gender or even an OEM over an IAM. why IAMs are not only
journey in a new way – they loca ons visited – OEMs can focussing on price but also on
need to break it down and develop a truly unique offer Informed by the vehicle’s the differen a on created by
understand the opportunity such as customized marke ng diagnos c and usage data, tailored packages and express
that connected car data campaigns for parts and OEMs can provide a more services.
creates at each stage in the accessories or customized accurate quote for the cost of a
process. products such as service service, based on their In response, OEMs should
contracts. knowledge of how and where increase their investment in
So how do OEMs ensure that the car has been used, and the their workshops’ physical
customers pick one of their Stage two: transparency at wear and tear of its parts. environment and recep on
affiliated workshops over an booking area to enable customer-
independent alterna ve? For As they know in advance which centric retail processes,
the me being at least, OEMs Almost three in four repairs if any will need to be especially for their known
have an advantage over IAMs, respondents in our survey carried out (most likely), OEMs customers. They should also
especially for the latest (71%) say they want a detailed can also give their customers a ensure there is a well-informed
connected car models, service advisor to greet
because they receive vehicle customers and access their
diagnos c data and can follow-
up directly with the driver – via Figure:2 - Preferred Communications by Workshop Type
the phone, app or HMI – to ask
whether they would like to Although there are no differences between gender, generally customer
make a booking at a nearby prefer to be contacted via e-mail...
workshop. By the same token,
for older car models, there are
opportuni es to retrofit a
telema cs solu on into the car
so it can receive real- me
informa on and even get
routed to preferred workshops.

To ensure they secure the
driver’s custom, OEMs should
consider developing special | February 2021 F A D A Journal 25


Figure:3 - Expectations and experiences of workshop visits valuable informa on to
roadside assistance to help
them take the right parts to the
damaged vehicle (which is, for
example, provided through
JLR’s breakdown call bu on).

Stage five: a er-a ersales

At the final stage, when the
service (whether rou ne or
unexpected) is complete,
there is s ll more work to be
done to build loyalty and
ensure a repeat appointment.

details: more than six in 10 non-rou ne problem with the or HMI with a request to Our research suggests that a
respondents (62%) say this is car and it needs essen al approve the addi onal work follow-up communica on by
the most important part of the repairs, the vehicle alerts the before going ahead. the workshop keeps the
experience. driver – who can run a customer happy and helps the
diagnos c scan and forward By extension, OEMs can offer workshop to undertake
Since connected car data the results to the workshop so the driver faster and more con nuous improvement by
enables OEMs to know which they can be prepared for the efficient support in the event gathering feedback. One in
customer will be a ending vehicle when it arrives. of a breakdown, by drawing on two respondents (51%)
their workshops, they can plan real- me diagnos cs as well as consider the opportunity to
ahead by reserving parking lots Similarly, if the technician finds recent workshop and give feedback important, and
and preparing the service an unexpected issue while customer data. Remote feedback is par cularly
advisor with the right carrying out the service on a diagnos cs data can feed important for younger drivers.
informa on. vehicle, he or she could video automa cally into the
the problem and share it with ordering process for required The OEM can also leave the
Further, personal advisors can the customer through the app spare parts. It can also provide driver with a customized
explain and guide customers maintenance plan that
through their personalized combines driver-profile
services, which harness car-
usage and customer data to Figure:4 - Preferred Communications Types by Age
meet their specific needs. By
doing so, they help to sharpen All customers would like to be contacted by phone for enquiry calls, however,
differen a on with only 9% would like to be contacted through a customer portal - least of all older customers
compe tors and create
opportuni es for cross- and

Stage four: an cipa ng and
managing the out-of-ordinary

OEMs can use connected car
capabili es to be fully
prepared for their customers’
out-of-the-ordinary needs.
Today ’s vehicles can, for
example, predict maintenance
requirements for parts that are
at risk of decline by providing
monthly health reports and
remote diagnos cs. If there is a

26 F A D A Journal February 2021 |


Figure:5a - Preferred communications for completing the maintenance order

Figure:5b - Preferred channel of feedback by age, gender and for maintenance work.
preferred type of workshop
At present, OEMs s ll have a
All drivers would like to give feedback personally, least popular via telephone survey strategic advantage over
independent operators in that
informa on with maintenance connec vity provides the switch freely between offline they receive vehicle and driver
and workshop data, crea ng opportunity to centrally and online touchpoints. In this data & can use this to provide a
addi onal value and customer combine customer data with context, a consistent & digitally superior experience. While
loyalty. This can be adjusted vehicle/connec vity data, enhanced service journey is this arrangement is unlikely to
depending on how the vehicle which is a prerequisite to the first step in establishing a last forever – as customers
is used; for example, if the enhance the customer modern premium service for increasingly restrict who they
vehicle is primarily used for experience. all customer touchpoints. share their data with – OEMs
short trips. should consider how they can
This takes the customer Looking ahead, however, use the data, while they have
The future: connected as experience to a whole new addi onal disrup on to come it, to innovate around the
normal level, since individual a er- in the form of so ware-over- customer experience, such as
sales touchpoints are enhanced the-air (SOTA) patches & by integra ng with insurers &
As connected cars become by new, digital touchpoints and updates, as well as greater other third par es to develop
increasingly normalized, there integrated into one seamless market adop on of EVs that combined offerings. Done
will be implica ons for customer journey, while also have fewer moving parts and well, customers will seek out
everyone in the a er-sales permi ng the customer to therefore fewer require-ments these value-adding offerings in
ecosystem. As discussed, the future, especially if they
are offered in combina on
with a seamless digital
experience and a powerful
SOTA capability. By out-
innova ng the compe on
while they s ll have access to
vehicle and driver data, OEMs
can develop a compelling
offering for the a ersales
market of tomorrow. | February 2021 F A D A Journal 27


6 Key CV Industry Trends & Analysis of Feb’2021 Sales

- Kaushik Narayan, CEO, Leaptrucks

February was a challenging Commercial Vehicle (9%). While the Passenger volume last year. Eicher
month for the industry with (M&HCV) Segment and the segment con nued to Trucks and Buses and Ashok
the top 5 manufacturers Intermediate & Light degrow, it had its best Leyland followed with a
showing a modest de-growth Commercial Vehicle (I&LCV) monthly performance in a strong performance of 25%
of (1%) in Feb 2021 vs Feb Segment both showed strong challenging year with a lower and 20% respec vely. Tata
2020. Year to date, the growth of 24% and 18% de-growth of (52%). Motors grew by 2% while
industry is con nues to be respec vely. Mahindra was the only
down by over (30%). Manufacturer Level manufacturer to de-grow by
The Small Commercial Performance (42%) over significant supply
Segment Level Performance Vehicle (SCV) segment challenges.
con nued to be plagued by Maru con nued to perform
The Medium & Heavy supply issues degrowing by strongly over a low base 6 Key CV industry trends

The industry con nues to
face many short term

Strong Recovery: The CV
industry is down by (30%)
year to date. To put things in
perspec ve, the industry was
down over (85%) at the end
of Q1 2020. To add to this, the
bus industry, which made up
about 9% of the CV industry
volumes last year was
severely impacted by Covid,
down by over (83%).
Considering the impact of
Covid and these challenges,

28 F A D A Journal February 2021 |


the turnaround has been an average of 30% over the con nue to grow. It will be fuel for their trucks. Petrol and
pre y remarkable. past year (Rs. 66.29 on challenging for freight rates CNG are now compe ng with
1/3/2020 vs Rs. 86.37 on to also con nue to rise Diesel for customers,
Impact of BS6 transi on: All 1/3/2021 in Bangalore). At a indefinitely because this will especially in last mile
motor vehicles in India have a nega ve impact on transporta on. As the number
transi oned from BS4 to BS6 me when demand was the prices of commodi es of CNG pumps increases, CNG
emission norms by March 31, stabilizing to pre-Covid and essen al supplies. is now becoming an a rac ve
2020. Consequently, the levels, rising fuel prices choice as both a cleaner and
sales from February 2020 con nue to dampen logis cs Component supply environment friendly for
were lower than the year opera ons. challenges: Supply issues companies as well as a
prior in prepara on of the con nue to plague OEMs as significantly cheaper op on for
transi on. Despite a lower Lagging freight rates: It is indicated by Mahindra in a operators. Offering similar
base, volumes s ll de-grew largely es mated that less recent press release. New mileage, 1 kg of CNG is 40%
by (1%) in February 2021. that less than 20% of freight vehicle deliveries will cheaper than 1L of Diesel (Rs.
This clearly indicates that the is moved under long term con nue to pose a challenge 51.50 vs Diesel at Rs. 86.37 in
industry con nues to be in contracts that are linked to due to the delay in delivery of Bangalore).
the process of recovery. We fuel rates. Large operators semi conductors and other
an cipate significant growth with long term contracts cri cal components If you are worried about
in March 2021 since the sales linked are able to manage an cipated over the the next availability, rest assured that
in March 2020 was even these fuel price increases 4 months. the penetra on of CNG is
lower than the sales in be er with a lower impact to significantly more than you
February 2020. profitability. However, The rise of CNG: With the think as seen in this map from
smaller operators with short advent of the BS6 era, Maru Suzuki that shows all
Rising fuel prices: Diesel term or no contracts customers are now le with a CNG pumps in and around
prices in India have grown at con nue to struggle as fuel wider choice of engines and your city.
and other input costs | February 2021 F A D A Journal 29

Business Achievers

& The Secret Sauce
for Success

How did a Ludhiana-based company go from being
an experimental home kitchen to the bourses? The
success story of Mrs. Bectors Food is rooted in its
visionary leader, Rajni Bector.

Rajni Bector, with her son
Anoop Bector, MD, Mrs. Bectors Food.

Most wedding feasts of Saharanpur. Back then there oversubscribed by 198 mes giant Mondelez] is a testament
the early 1980s in the were no caterers who could on the final day of bidding on of their quality,” she says. Mrs.
northern part of the provide these items to December 17, reveals stock Bectors Food manufactures
country—think Punjab, weddings and par es,” says exchange data. Oreo biscuits and Cadbury
Haryana, and thereabouts— Rajni Bector, founder and non- Chocobakes cookies on a
would typically have a set of execu ve director, Mrs. It reported the highest contract basis for Mondelez
flavours in common: that of Bectors Food Speciali es subscrip on among IPOs last India Foods which owns
Rajni Bector ’s ice creams, Limited. year, outpacing the brands such as Cadbury,
puddings, and salads with her subscrip on figures of defence Bournvita, Halls, and Tang.
signature dressings. Four decades later, the biscuit- company Mazagon Dock
and-bakery firm started in her Shipbuilders and Burger King How did a family-run business
As she proudly proclaims, in home kitchen in Ludhiana, India. from Punjab become a
the catering business world of Punjab, is India’s leading na onal player? The answer
Punjab and Haryana, she was supplier of buns to quick- The company is also the lies in the intrepidness of its
the sole supplier of Western service restaurant (QSR) second-largest exporter of founder, Rajni Bector.
desserts and salads. chains such as McDonald’s, biscuits in the global market,
Burger King, KFC, and Carl’s Jr. says Sagarika Mukherjee, vice- To start with, Bector was an
“I was catering to thousands of To boot, the company’s ₹541- president at Elara Capital. “The outlier, defying many
weddings in Ludhiana, crore blockbuster ini al public fact that they are contract stereotypes. Back in Ludhiana
Jalandhar, Amritsar, Ambala, offer (IPO) on the bourses (BSE manufacturers for Oreo in the late 1970s, a woman
and even Delhi, Dehradun, and and NSE) last December was biscuits [owned by snack-food running a business was not

30 F A D A Journal February 2021 |

Business Achievers

encouraged in society. “People Before marriage, though It helped that Bector had a flair cream making. While the
thought I was mad. I am just Bector wasn’t yet an expert for food. In fact, a er her college taught her how to
was ng me. But I never at cooking or baking, she was children went to boarding make a basic vanilla flavour,
bothered. I had the confidence no stranger to the kitchen school, she made use of her she experimented with
and the support of my either. “Cooking is in my spare me to innovate on different toppings and
husband and father-in-law,” genes,” she says. “My mother recipes. “My favourite pas me developed about 40 flavours
the 80-year-old entrepreneur was a very good cook. I have was to try out new dishes and such as fresh mango, toasted
tells Fortune India. learnt many recipes from feed people,” she laughs. almond cracker, mixed-fruit,
her.” And she learnt well, and cherry on her hand-
She was married at the age of considering that she has As her passion for cooking churning machine. “The Dean
17 while s ll in her second year received a Padma Shri, grew, she signed up for short- [S.C. Jain, who was a guiding
of college at Miranda House, India’s fourth-highest civilian term voca onal courses at the force during her ini al years]
New Delhi, and her husband award, in 2021 for her Punjab Agricultural University then from the home science
worked in the family business contribu on to trade and (PAU) including a dairy college at PAU, who was a
of commodi es trading. industry. technology course to learn ice- triple doctorate in ice cream | February 2021 F A D A Journal 31

Business Achievers

produc on, was amazed to see for manufacturing ba er and
my innova ons,” Bector says. breading pre-mixtures for
McDonald’s. (EBI Foods was
Soon, her kitchen could no already working with
longer support her McDonald’s interna onally.)
innova ons. Her husband, also Less than a decade later, Mrs.
her sounding board for Bectors Food bought out both
business advice, told her to set the JV businesses, says Anoop
up a small unit in the backyard (58).
of their house and start a
commercial business. “Since I The McDonald’s deal wasn’t a
was making everything with large opportunity financially,
cream, I named it Cremica,” he points out, because
says Bector, who started McDonald’s was se ng up
Cremica in 1978 with an their base in India at the me
investment of Rs. 20,000, an and the volume of business
amount gi ed to her by her was small. “But we gained a lot
mother. in terms of technical training
from the McDonald’s team in
Her business (of ice-cream areas such as food safety, low-
manufacturing and baking at cost produc on and
the me) started booming by cer fica on,” says Anoop. “We
the mid-1980s and she kept brought these skill sets to all
adding to her produc on our factories including bakery,
capabili es in Punjab. By then, biscuits, and cookies.” This
Bector’s two sons—Akshay gave them an edge over
and Anoop— had joined the compe on in a highly
business. Her eldest son, Ajay, aggressive market where
joined in the mid-’90s. players can clone others’
offerings fairly quickly.
Mrs. Bectors Food, which steadily extended and The growth has been
today commands a market expanded its distribu on consistent over the last three According to an October 2020
capitalisa on of over ₹2,300 reach, invested in innova on decades but Anoop Bector, report on the ‘Indian Biscuit
crore, exports biscuits (under and quality enhancement, managing director, Mrs. and Bakery Industry’ by retail
its flagship brand Mrs. Bector’s built both its B2B [business-to- Bectors Food, believes the consultancy firm Technopak, in
Cremica) to over 60 countries. business] and B2C [business- turning point came in 1996, FY20, Parlé, Britannia, and ITC
The company has a pan-India to-consumer] businesses, when it bagged the contract to had a combined share of 57%
distribu on network across 23 sharpened its supply chain, supply McDonald’s with buns in the premium and mid-
states with about 644 etc.” along with ketchup and premium biscuits market in
distributors and a presence in toppings. This led to the North India, while Mrs. Bectors
over 458,000 retail outlets. It In other words, says Bali, Mrs. company entering into two Food had 4.5% in the same
manufactures and markets a Bectors Food has worked on joint ventures (Jvs): a 50:50 JV segment. “The company has
range of biscuit products sharpening its business model. with Quaker Oats Company to generated a great brand name
carrying the Cremica brand, “It also operates in a space that supply ketchup, mayonnaise, in the north Indian market for
and breads and bakery items is large and growing and yet tartar sauce, and other liquid their biscuits brand Cremica,”
under the brand English Oven. has low per capita condiments to the American says Mukherjee of Elara
consump on, so all the fast food giant; and a JV with Capital. “The word of mouth
Vinita Bali, former managing ingredients for sustainable and the U.K.-based EBI Foods Ltd. for their bread offering English
director of FMCG major profitable growth are in place.” Oven is strong and it is kept in
Britannia Industries, all premium bakery and food
acknowledges the company’s outlets which also gives them
growth trajectory, saying: high margins.”
“Cremica has, over the years,

32 F A D A Journal February 2021 |

Business Achievers

Mrs. Bectors Food has recently facility in Rajpura, Punjab. The large-scale premium bakery In 2013, as part of a family
started supplying its products company has also indicated its brands in India. “We are se lement, the biscuits and
to Swedish furniture retail intent to set up a new innova ng in bread with bakery business was
giant Ikea as well as to produc on line for biscuits products such as croissants, demerged from the
American grocery store chain that is likely to cost ₹40.5 shea bu er bread, and condiments division. While
H-EB and to Dollarama, a retail crore. sourdough bread. We are also Ajay and Anoop took charge of
chain in Canada. At present, exploring frozen desserts and the biscuits and bakery units,
exports contribute 22% of total The management wants to bakery items such as chocolate respec vely, the condiments
sales for the company, give the bakery business a lava cake and other types of business was given to Akshay.
followed by the branded push as well. A er all, the cake at affordable prices,” says In 2015, Ajay sold his stake in
bakery and QSR businesses at bread business has grown at a Ishaan, who supplies frozen Mrs. Bectors Food to start his
17% each, while the rest of the CAGR of 29% in the last three bakery items to mul plex own business.
revenue comes from the financial years under the chain PVR Ltd and cloud-
domes c biscuits business. leadership of Ishaan Bector, kitchen company Rebel Foods. Of course, con nuing to lead
Anoop’s elder son. “In this by example is Rajni Bector,
The growing demand is being current fiscal, we have grown Ishaan and his younger brother who shows no signs of slowing
met by Mrs. Bectors Food’s six by more than 40%,” says Suvir, 26, vice president, down. “Whenever any new
manufacturing facili es, Ishaan, 31, director, Mrs. exports, are part of the new product is to be launched in
including three biscuit plants Bectors Food. genera on of the Bector family the market, I tell the team
and three factories for bakery that is taking Rajni Bector’s what is right and what is wrong
produc on. It now plans to According to a brokerage vision forward under their in the product,” says the
u lise the funds generated report by Anand Rathi dated father, Anoop, who has led the octogenarian. And why not?
through its IPO to finance the last December, English Oven is listed en ty over the last two She is the one with the proven
expansion of its manufacturing one of the fastest growing decades. taste buds.

Attention: Members

Engagement of GST Consultants

GST consultant – Dr Sanjiv Agarwal based in Jaipur has been engaged by FADA on retainership to help members deal with
the complexi es of GST law and procedures. He will, on reference made by FADA, guide and give opinion on various issues
rela ng to GST as applicable to automobile dealers.

FADA will forward the queries raised by members to him for their opinion. While Dr Sanjiv Agarwal will, essen ally, give
legal posi on and clarifica on, supported by case law, on various GST issues raised by FADA Members, those wan ng to
engage him as counsel, will have to pay separately as per terms that may be mutually agreed to.

Member seeking clarifica on or legal posi on related to GST as relevant to automobile dealer, may send their queries to
FADA at [email protected]).

Engagement of CMVR Consultant

CMVR consultant - Mr Hans Kumar, Retd Additional Commissioner, Transport Department, Rajasthan is with FADA on
retainership basis. He is an authority on CMVR Rules and is also approached by MoRTH.

FADA will forward members concern regarding CMVR Act & Rules to Mr Hans Kumar for clarification and suitable
representation ,if any, to be made to the respective State Transport Authorities and to MoRTH where applicable. Members
are requested to send their queries at [email protected] | February 2021 F A D A Journal 33

Automotive Technology

Connected Cars: Disruption in Mobility

The Automo ve Industry is Mobility-as-a-Service a wide range of service rent them. Service providers
Changing, Fundamentally providers, from car sharing then make these cars
This is where it gets (e.g., Car2Go), ridesharing available, maintain them,
Un l the past few years, large interes ng. What we’ve seen (e.g., Uber) to new on-demand and pay for the insurance. In
automobile and original in the last couple of years is the electric scooters. the fully connected world of
equipment manufacturers like need to find new forms of the future, we will see
Audi, BMW, Ford, Toyota, mobility which connect to Customers can determine integrated intermodal
Volkswagen, and others held different modes of which of these vehicles to mobility: not only can
the major market share of the transporta on. This resulted in use, in which and quickly private companies offer
automobile industry. However, their services to consumers,
the tables are somehow but they can also connect
turning. Auto OEMs are now their infrastructure to public
being challenged by the transporta on systems.
so ware and service industry
to adopt connected mobility As a result, for the automo ve
through digital services. They industry, the idea of people
are facing some hard ques ons purchasing, owning and using
about value proposi ons, a car is being challenged.
capabili es, service Instead of buying or leasing a
partnership, and best prac ces vehicle (ie. the hardware),
to take the lion’s share in the consumers temporarily rent
future. Given their already one. This “as-a-Service” idea
established infrastructures and has already been gaining
customer base, it is not hard for trac on, e.g., in the so ware
OEMs to develop solu ons that industry – you have all come
integrate a connected lifestyle across the “SaaS” (So ware-
with exis ng mobility to realize as-a-Service) model, now this
the dream of mainstream idea also makes its way to the
connected mobility. car drivers.

34 F A D A Journal February 2021 |

Automotive Technology

Connected Cars: IoT Devices SMS or push no fica on than ten years later, the Model startup eGO from the German
on Wheels S was both produced and sold. city of Aachen has released its
• Safety: func ons that warn Un l now, the company has first compact passenger car
A connected car is a vehicle the driver of external hazards shipped more than 520,000 e.Go Life. In general, sales of
equipped with telema cs and internal responses of the cars to the USA, Europe, China, electric cars have gone up
boxes which can establish an vehicle to hazards (e.g., vehicle and other countries. Now Tesla considerably over the last
internet connec on via a GSM condi on and service cars have a share of 20% of all several years.
module – very similar to how reminders, remote opera on, the world’s ba ery-only fleet
mobile phones operate. So if transfer of usage data) and they are a common sight In Europe, Norway is the
we think about which mul ple these days. country with the most
use cases there are for apps on • Entertainment: func ons ambi ous goals regarding
an iOS or Android device, it is involving the entertainment of But Tesla is not the only one zero-emission cars. In fact, the
easy to imagine just how many the driver and passengers building zero-emission cars, in country wants to ban the sale
different use cases there are (e.g., smartphone interface, fact, there are quite a number of combus on engine
and will be in the future. In WLAN hotspot, music, video, of companies who have been powered cars by 2025. The
other words, the car, which Internet, social media, mobile producing ba ery-driven or at Scandinavian country
used to be just a chassis with office) least hybrid engine cars: Audi incen vizes the purchase of
four wheels and an engine, has just released its all-electric electric cars: consumers don’t
turns into a device which plugs • Driver assistance: func ons SUV e-tron, BMW launched its have to pay the value added
into the Internet of Things, involving par ally or fully first mass-produced zero tax for those vehicles, and they
sending and receiving data. automa c driving (e.g., emission car, the i3 in 2013, are also exempt from carbon
opera onal assistance or Renault sells the Zoe, which dioxide, nitrogen oxide, and
According to PwC, there are autopilot in heavy traffic, in has been on the market since weight taxes. Addi onally,
eight segments which parking, or on highways) 2012, likewise the Nissan Leaf owners of zero-emission cars
characterize connected cars: has been available since 2010. get discounts on parking, toll
• Well-being: func ons And as a newcomer, the roads, and ferries.
Ÿ Mobility management: involving the driver’s comfort
func ons that allow the and ability and fitness to drive
driver to reach a (e.g., fa gue detec on,
des na on quickly, safely, automa c environment
and in a cost-efficient adjustments to keep drivers
manner (e.g.: Current alert, medical assistance)
traffic informa on)
As car manufacturers and
Ÿ Commerce: func ons customers realize the
enabling users to purchase addi onal benefits of
goods or services while on- integrated vehicles, the
the-go (e.g., fuel, food & number of connected cars
beverage, parking, tolls) which are sold around the
world is growing.
Ÿ Vehicle management:
func ons that aid the Electric Mobility is Changing
driver in reducing the Game
opera ng costs and
improving ease of use (e.g., When Elon Musk introduced
vehicle condi on and his vision of building a
service reminders, remote company around fully electric
opera on, transfer of cars, the global automo ve
usage data) elite mostly treated this as just
another one of his crazy ideas –
• Breakdown preven on: like building a space rocket.
connected to a breakdown A er se ng up Tesla Motors
service, with a back end Inc. in 2003, the plan was to
algorithm predic ng begin with a premium sports
breakdowns and an outbound car aimed at early adopters,
service intervening via phone, and then move into more
mainstream vehicles. Less | February 2021 F A D A Journal 35

Automotive Technology

Electric Ba eries & Charging car – commu ng, driving to The future with connected builders es mate that level 5,
Infrastructure shops, or going on vaca on. autonomous cars can also fully autonomous cars will be
And the reality is that you just create unlimited possibili es available within the next 5-10
But electric engines are not the cannot do much while driving. for senior ci zens and years. Advances in AI support
only part of the story. What’s In a me where people try to physically disabled people. this ambi ous forecast.
almost more important is how get the most out of their days, “Blind and visually impaired Autonomous cars enable a
to store electricity efficiently. being restricted to keeping people could benefit from whole new range of services
Ba ery technology is their vehicles on the road feels travel op ons that were such as infotainment because
becoming a new scien fic and like a waste of me. previously unimaginable,” says the vehicle turns into a
economic ba lefield – some Sue Sharp from the Royal personal, mobile living room.
even say that ba eries are the If there is any viable solu on to Society for Blind Children in
new oil – and it is no surprise have an intelligent real- me the UK. “Imagine how With smart and audio-enabled
that Tesla is producing its own traffic system, it is connected libera ng it would be for an 18- devices as well as mobile
ba ery packs in what they call fundamentally to autonomous year-old blind man to be able internet connec ons
the Gigafactory. cars. They enable efficient and to drive to meet his girlfriend everywhere, connected cars
real- me traffic management instead of having his mother are quickly gaining
Last but not least: charging and can reduce traffic take him there.” prominence as an exci ng
sta ons are important. Here, conges on dras cally. Human touchpoint of the post-web
Tesla has laid the founda on errors can also be reduced Another futuris c advantage is era. We’re entering an era
with their so-called because autonomous cars the commute me to and from where drivers can interact with
Superchargers, which allow make fewer mistakes than work. Boston Consul ng brands and retailers through
Tesla drivers to refuel their humans and also do not drive Group es mates that voice and expect instant
vehicles at more than 1,400 (or drink) recklessly. Their connected autonomous cars results – why wait un l
sta ons around the world. be er speed and driving can reduce travel me in urban reaching my des na on when
I O N I T Y, a j o i n t v e n t u r e pa erns can reduce the ci es by up to 33%. I can be served right now?
between BMW Group, Daimler emission problem as an added
AG, Ford Motor Company, and incen ve. Experts and CEOs of car Purchasing Cars & Accessories
Volkswagen Group with Audi
and Porsche included are We have go en so used to
building a charging network for purchasing everything online –
electric vehicles. Their plan is from groceries to fashion, from
to have 400 fast charging digital books and music to
sta ons along major highways expensive luxury watches.
across Europe by 2020. However, with cars it’s not that
easy. Automo ve OEMs, for
Although the vast majority of the most part, rely on their
cars on the road are s ll driven retail network to sell their
by combus on engines, the products to the customers. In
clock is cking for those kinds other words, the transac on is
of vehicles. Countries around not done via a website, but
the world have set ambi ous while visi ng a dealer
goals, and when tax benefits showroom. Yet, according to a
for EV (electric vehicles) study done by Accenture, 75%
owners meet dropping prices of customers would buy a car
for ba ery technology, this online. And this makes sense:
technology is certainly headed when they spend months
for mainstream adop on. doing research online, why not
give them the opportunity to
According to the American do the transac on online as
Automobile Associa on, well?
Americans spend an average of
17,600 minutes driving each So far, car manufacturers are
year. In other words, every pu ng more focus on
driver in the US spends almost delivering an inspiring and
an hour each day in his or her intui ve user experience.

36 F A D A Journal February 2021 |

Automotive Technology

Poten al customers can find services that guide, entertain, Entertainment and Info- highlighted in his report that
out more informa on about and inform the drivers and tainment the average me spent on-
cars and use elaborate passengers are now redefining Entertainment and street looking for parking was
configurators to assemble the game. infotainment digital services about eight minutes and the
their preferred variant online. are a huge part of the figure has remained
Further, they can also make In-Car Commerce connected car experience. unchanged since the 1930s.
appointments for test drives Drivers look for relevant His research also concluded
and look into financing and As long as self-driving vehicles informa on while driving and that of all vehicles on the road,
leasing op ons. are s ll experimented with, also want to stay entertained one in three vehicles is looking
using your voice is the only and updated during long for a spot to park.
Here it is interes ng to note reasonable mode of commutes. This shows a really good
that the digital presenta ons communica on. With a voice
which car manufacturers offer assistant in place, the vehicle is Infotainment digital service opportunity that connected
to their customers have suddenly turned into a very includes informa on about the cars can tap by providing
nothing to do with rocket versa le touchpoint which car, low fuel level, total accurate traffic and parking
science. Other industries, who becomes increasingly distance covered, brake oil informa on. Connected cars
have been doing e-commerce interes ng for brands and level, a clogged air filter with can let customers find parking
for decades now, have been retailers. dust par cles, door open or spots in areas where parking is
building these kinds of close and other relevant a hassle. Some features will
customer experiences for Now, drivers can look for informa on to keep the driver also schedule a car wash in
years. In other words, the way products, get their shopping informed about the car and its certain spots so you won’t
to go forward for automo ve done, organize their next maintenance. have to plan ahead for it.
OEMs is not only to build new birthday party, and check Drivers of connected cars will Drivers can find available
products but to learn from tomorrow’s weather forecast. also be able to find restaurants parking, reserve a spot, and
other industries regarding how They are in a comfortable on their way and order their also pay for it in advance. It’s
to inspire and retain visitors of space, they have me to spare, food in advance. Payment not as easy as it sounds
digital channels. and nobody is there to through the dashboard will though. Parking spots in any
complain about their constant open opportuni es to pay with place are usually divided into
Digital Services in the Car cha er with their digital the convenience of your car. types: on-street and off-street.
butlers. And the best part is Smart Naviga on & Smart Connected cars can easily take
As cars are turning into mobile that this touchpoint is truly Parking care of off-street parking
communica on, infotainment, mobile. So if a customer needs Sixteen surveys were through sensors and constant
and entertainment centers an item really urgently, the car conducted under the data. In a few steps, drivers will
rather than just being a mode could direct her to the nearest supervision of UCLA Professor also be able to book and pay
of transporta on, digital store that carries it. Donald Shoup, who found seamlessly for a space in any
some interes ng facts18 about garage. The actual hard work
parking space during the me required is for on-street
between 1927 and 2001. He parking because detec ng
available spaces in real- me is | February 2021 F A D A Journal 37

Automotive Technology

complex and requires mul ple schedule a reminder for car parts. This is how drama cally shortens the me
layers of informa on to be drivers about repairs and also replacement based on the it takes for emergency services
handled seamlessly. schedule an appointment with number of miles driven to arrive.
automobile shops and garages concept came to the place.
It’s not impossible though. in advance to avoid any last Similarly, AI now has the Apart from the eCall system,
Anagog is using an approach to minute hazard. poten al to ac vely monitor connected cars will also have
detect parking and unparking the life of the vehicle and its sensors to prevent such
events through iner al sensor Not only this, remote parts while it is in use. Uptake, accidents from happening. For
data from driver ’s diagnos cs while driving is Preteckt, and Caterpillar are instance, the U.S. Department
smartphones. The company also possible so the driver some of the companies that of Transporta on has
has built an SDK now can assess if the have taken the plunge to proposed some rules that will
embedded in several apps. maintenance is needed and explore this opportunity with enable connected cars to
Through signal processing, how urgently it is needed. connected cars. Another “talk” to each other (V2V
Anagog is detec ng out of With the help of sta s cal company, Volvo Truck is communica on). For example,
gyroscope, accelerometer, and tests like similarity analysis tapping the same on a blind intersec on, a
loca on data (GPS, etc) the data can be compared opportunity, it strives to connected car would no ce
parking events which are fed to with historical issues which provide service no ce and that the other car is not
a big data cloud which now has were commonly maintenance before any slowing down and could alert
almost 1 billion historical experienced, once the issues breakdown. Down me of any the driver to slow down or
parking events. are iden fied, the needed vehicle is a nightmare for some mes apply brakes
parts and the closest dealer freight and logis cs automa cally to prevent a
One more feature that will be no fied of the companies, so Volvo has collision.
connected cars have is the appointment. This process adopted an analy cal solu on
real- me traffic updates will save me and cost as the to an cipate breakdowns and Similarly, another example of
through V2I. The smart running of diagnos cs every other incidents and speed up safety is through vehicle-to-
naviga on feature can select repairs when necessary. infrastructure (V2I) technology
the best route possible for me to find the issue will be where the car can alert the
drivers during peak hours. avoided. When the driver Safety, Security and driver that an upcoming traffic
Drivers can also inform 3rd arrives for the appointment, Emergency eCalls light is about to turn red so in
party en es like restaurants, the technician with the turn slow down the car or stop
companies, events, and hotels iden fied skills will be The first and foremost use- to avoid an accident.
about their es mated me of available with the right parts case of digital service in the car
arrival which is equally as to fix the issue. This en re is to provide safety, security, All these safety and security
accurate as sharing your live process will make your car and convenience on the road. features will also add another
loca on. maintenance process fast, The emergency response of benefit for insurance
seamless, and cost efficient. connected cars was among the companies and car
Maintenance, Repairs and So ware updates will also be earliest use cases of this manufacturers. Connected
Traffic Jams a process of minutes without innova on and it will remain cars and sensors will give these
any delay if your car is significant in the future as well. companies a deeper
All connected vehicles use a connected to a WiFi service. Connected cars are able to use understanding of your driving
sensor system which we all cellular connec vity and GPS pa ern, mistakes, and habits.
know, can fail. Not just a sensor Another breakthrough in the to respond in case of an For example, companies can
system, maintenance, and maintenance of cars is the use emergency, accident, or use braking and accelera on
repair of everything else in of Ar ficial Intelligence to sudden breakdown. As of behaviour to provide drivers
connected cars is crucial but predict breakdowns in March 2019, every new car in with alerts and prompts to be
will not be a hassle. How would advance. Companies are using Europe will have an eCall more mindful on certain
this be possible? The cars can sta s cs to calculate the system, a feature that aspects of their driving.
mean me to failure of your

38 F A D A Journal February 2021 |

Competition Law

Competition Law Updates

G R Bhatia posi on did not arise and thus, On 10.03.2021, the Taiwan Fair TFTC did not perceive any
no viola on of Sec on 4 of the Trade Commission (TFTC) market restric ons that were
Partner & Head Compe on Act, 2002 could announced that it had cleared likely to arise from the
Competition Law Practice Group be established. The detailed the proposed acquisi on of proposed transac on.
Luthra & Luthra Law Office order of the CCI in this regard is Hexing Interna onal Moreover, it was noted that
awaited. Automobile (Hexing) by Hotai buses were customized
Compe on Commission Motor. Hotai Motor and its products, heavily influenced
of India dismisses Supreme Court to adjudicate subsidiary Chang Yuan Motor by client preferences
complaint filed against Jaguar on allega ons of resale price (collec vely Hotai Group) (specifica ons of chassis, auto
Land Rover maintenance (RPM) against intend to acquire more than a body). Thus, the proposed
Hyundai 50% stake in the target transac on was cleared as no
The Compe on Commission company, and control its substan al compe ve
of India (CCI) has recently Vide order dated 14.06.2017, business opera ons as well as concerns were likely to arise
dismissed allega ons of abuse the Compe on Commission personnel appointments and therefrom, and the overall
of dominance levelled against of India (CCI), a er a detailed departures. economic benefits would
Jaguar Land Rover, a Bri sh analysis of the findings arrived outweigh any adverse impact
mul na onal automo ve at by the Director General (DG) The TFTC observed that Hotai on compe on.
company, and subsidiary of in the inves ga on report had Group is engaged in the sale of
Indian automo ve company held that Hyundai Motor India bus chassis whereas Hexing Australia increases
Tata Motors Limited. Ltd. had imposed ver cal was a newly established automo ve franchisor
restraints of RPM and tying-in, company which would misconduct fines
The informant alleged that in viola on of Sec on 3(4)(e) undertake bus body building
Jaguar Land Rover had abused [Resale Price Maintenance] and small truck modifica on On 12.03.2021, the Australian
its dominant posi on with and Sec on 3(4)(a) [ e-in businesses post-transac on. government announced that it
respect to sale of Range arrangements] of the While delinea ng the relevant would protect domes c
Rovers, one of the brands Compe on Act, 2002 (Act). market, it was noted that in family-owned automo ve
under their umbrella. The CCI CCI also imposed a penalty of Taiwan, finished buses for sale businesses and their
delineated the relevant market 87 crores on Hyundai. are built on the basis of chassis employees from the growing
as that for “manufacture and and assembled by an auto power imbalance in favour of
sale of luxury cars in India” The NCLAT, by way of its order body factory, thereby mul na onal car companies,
while examining the conduct dated 19.09.2018, set aside indica ng a ver cal by introducing new significant
of Jaguar Land Rover, the order of the CCI, primarily rela onship between the financial penal es for
concluding that as they were on technical grounds of par es who were engaged in wrongdoing under the
not dominant in the relevant alleged non-apprecia on of bus chassis retail and auto Franchising Code of Conduct.
market iden fied, the evidence independently by body building respec vely.
ques on of abuse of dominant the CCI and relying Thus, the relevant markets A fine of up to AUD 10 million
completely on the findings were defined as the markets (USD 7.78 million) could be
given in the DG's inves ga on for: (i) bus chassis; (ii) bus imposed on interna onal car
report. The CCI appealed the body; (iii) small truck companies that undertake
said decision of the NCLAT, modifica on. systemic breaches under the
which is currently pending Code, including unilaterally
before the SC for final As all three markets were changing contracts, poor
disposal, likely to be listed on characterized by the presence compensa on, and reneging
24.03.2021. of several significant players on warran es. The
and Hexing was a new entrant government is also looking at
Taiwan Fair Trade Commission in the bus body and small truck introducing mandatory
clears Hotai Group’s modifica on markets, the binding arbitra on provisions
acquisi on of Hexing within this new code.
Interna onal Automobile | February 2021 F A D A Journal 39

Dealership Profitability

Customer Experience Trends to Watch Out:

A Wake Up Call for Car Dealerships - Ac vEngage

When you ask any savvy car ● 91% of unhappy confident steps towards your While the industry has made
dealer what their dealership’s customers who are non- final des na on: an elevated leaps and bounds towards
primary focus is, the answer is complainers simply leave. customer experience. omnichannel marke ng, many
usually the same: improving of these interac ons are siloed
the customer experience. ● Only 1 out of 26 unhappy 1. OMNICHANNEL IS NOT AN and vary from channel to
However, it’s one thing to say customers complain. The OPTION; IT’S A NECESSITY. channel. True omnichannel
CX is everything to your rest churn. retail offers seamlessly
dealership and quite another Today’s car buyers have more connected touchpoints and
to actually deliver. ● 67% of customers access to informa on than provides a cohesive customer
men on bad experiences ever, and that has completely experience.
Some sta s cs from about as a reason for leaving. transformed the way they
what your customers think: shop. From buying parts on Consistency across channels is
It’s undeniable; the consumer eBay to shopping for used cars key. The tone of voice,
● 61% said the car shopping landscape is shi ing. The good on Facebook Marketplace to a tudes of your team
experience did not news is that you can use the scheduling service on your members, and level of care &
improve from their customer experience trends in website, the customer journey a en on provided are all
previous me this eBook as a road map to is full of possibili es that span examples of things that need
help you navigate this rocky across mul ple channels. to remain consistent from
● Top 2 frustra ons = terrain. Read on and take more interac on to interac on.
paperwork and
nego a ons An omnichannel experience is
seamless. It means that no
● 47% of me at the ma er what channel
dealership is spent customers are using, they can
nego a ng and filling out move from step to step with as
paperwork li le fric on as possible.
Unfortunately, this experience
● 2h 52min average me
spent at the dealership

40 F A D A Journal February 2021 |

Dealership Profitability

is seriously lacking across The human experience results 3. CONSUMERS CONTINUE TO A. Transparency about the
industries. from businesses figh ng DEMAND DATA TRANSPARENCY. personal informa on
against the inevitable (please collected
Consumer expecta ons are refer Martec’s Law ). Because we’re living in an era
on the rise. of security breaches and B. Control over how that
Technology is changing faster growing distrust, brands now personal data is used
With consumer expecta ons than organiza ons. In this have to adhere to stricter data
expected to rise, your rigged race to keep up, privacy regula ons or pay the This trend shows no signs of
dealership needs to be present businesses have replaced price. From the California stopping. Much like what
when and where it ma ers humanity with efficiency. Consumer Privacy Act (CCPA) happened with GDPR, the
most to a clientele that’s Today is prime me for a to the General Data Protec on CCPA inspired other
diversifying and evolving (Gen reality check. Your customers Regula on (GDPR), it’s clear jurisdic ons (Hawaii,
Z is already buying cars). For don’t wake up as customers; that consumers are Pennsylvania, Washington,
that reason, we will see more they wake up as...well, demanding more: Puerto Rico, etc.) to propose
dealership’s shi towards humans. And the human privacy bills. Proof that if you
omnichannel experiences that condi on is unchanging: we haven’t been preparing for a
span throughout the en re want to be seen, heard, and shi to a privacy-driven
customer journey — from understood. That’s why the opera ng model, now is the
awareness to considera on to right approach to customer
purchase and beyond. experience isn’t digi za on; me to start.
it’s humaniza on. Whether regula ons require
2. CONSUMERS DEMAND A dealerships to achieve explicit
MORE HUMAN TOUCH. Humanizing the customer consent or just to explain their
experience is a mind-set. data prac ces, dealerships
Businesses have spent now have the opportunity to
endless me and money Reflect. When you review your
inves ng in ways to become processes and tools, ask demonstrate trustworthy data
customercentric in recent yourself what will enable a prac ces. Brands that build
years — inves ng in mobile, connec on with an individual privacy into their customer
data analy cs, and other (customers, vendors, experience will gain more trust
technology designed to employees, etc.). and be er access to data —
help us create a be er and will ul mately be able to
customer experience. The Listen. Know when to be agile offer the personalized
problem is that, while and when to slow down and experiences consumers
technology may have build a connec on by listening expect.
bridged one gap, it has to your customers’ unsaid Car buyers want personalized
simultaneously created needs. experiences. There’s no
Be authen c. A human
experience can’t be faked.
Allow customers to connect
with real people at the
dealership, and make sure
employees embrace the shi . | February 2021 F A D A Journal 41

Dealership Profitability

deba ng it. In fact, 2/3 of impact the customer crea ng a company culture customer experience. If your
consumers are more likely to experience: that thrives. dealership is focusing on CX in
buy from a retailer that sends 2020, it needs to start within
relevant promo ons. And, 1. Customer Journey Focussing on employee the organiza on to affect true
they are willing to exchange Educa on experience directly results change.
personaldataforpersonaliza on. from pu ng a greater focus on
More companies are training CONCLUSION
Data Transparency Tips: employees across the en re
organiza on about their Retailers have a major
1. Be transparent about customer journey. This helps challenge ahead: sa sfying
how you use the data. reinforce the no on that today’s and tomorrow’s
70% of consumers are everyone - be it front or back- customers. Businesses who
generally comfortable of-house staff - impacts CX. innovate can transform the
with retailers collec ng customer experience and truly
personal data if the 2. Empowerment Manage- change the world.
retailer is transparent ment Training
about how they use it. In an era where consumers
In the era of the customer, so want a humanized
2. Give consumers control skills are becoming more and experience powered by
of their own data. 75% of more valuable in the technology, the automo ve
consumers are generally workplace. Businesses across industry is primed for
comfortable with retailers industries are training success. Because selling cars
collec ng personal data if managers to become is s ll very much a people
theycancontrolhowitisused. empowering leaders who give thing, and it will con nue to
employees the tools and be for the foreseeable future.
3. Use the data consumers mo va on to take ownership
give you to serve them of customer service.
be er. 68% of consumers
reported streaming services 3. Humanizing Employee
use their data because it Experience
helps them find more
products & videos they like. Businesses are no longer
thinking about employee
4. BUSINESSES FOCUS ON experience in terms of just
EMPLOYEE EXPERIENCE. incen ve programs and
benefits. They are focusing on
While in the past we’ve seen the day-to-day experiences in
companies across mul ple the workplace and inves ng in
industries turn to technology
in their quest to provide a
be er customer experience
(CX), humans are becoming
just as (if not more) important.
Businesses are inves ng in
their own people.

The link between employee
experience and CX has been
well-documented throughout
the years. When employees
feel engaged, valued, and
cared for, they go above and
beyond for the customers they

Here are just a few ways
businesses are focusing on
employee experience to

42 F A D A Journal February 2021 |


The Indian Automotive Industry: From Resilience to Resurgence?

- McKinsey & Co.

Indian automo ve sales have shown resilience during the pandemic but have not returned to their pre-
COVID-19 strength. What will it take to go from resilience to resurgence?

Automo ve is one of the core vehicle sales fall, since the Past challenges and the pandemic introduced
sectors of the Indian economy automo ve sector provides 37 poten al for growth in the challenges that hurt demand
and, to a great extent, serves million direct and indirect jobs Indian automo ve industry and interfered with the
as a bellwether for its current while s mula ng job crea on automo ve industry’s deeply
state. An ominous fall in in other industries. What started as a small fire in intertwined supply chains.
commercial-vehicle (CV) sales September 2018—a dip in
foretold impending economic While the Indian automo ve sales of CVs a er the More recently, however, the
challenges in both 2012 and industry has faced many regulatory change in the axle- situa on has looked brighter.
2019, while a steep rise in recent challenges, including load norms—turned into a full- In late 2020, government
passenger-vehicle (PV) and the devasta ng COVID-19 blown conflagra on, at a scale travel restric ons eased,
two-wheeler (2W) sales was a pandemic, its growth poten al not experienced in the last two India’s harvest was good, and
harbinger of good economic is clear. In fact, the sector is decades, as fundamental the fes ve season s mulated
news in 2010. expected to account for 65 economic challenges roiled demand in some high-volume
million new jobs within India the Indian automo ve segments. Both 2Ws and PVs
The manufacture of transport by 2026 as companies increase industry. Credit availability fell, showed a recovery in month-
equipment accounts for 10 to produc on. To help domes c demand slowed (especially in over-month sales during that
12 percent of the gross value and interna onal players in infrastructure and mining),
added (GVA) within India’s India capture new opportu- and discre onary spending me.
manufacturing sector. Any ni es as the market expands, dropped, all of which
decline in that area we examined the current state contributed to a decline in Despite the ongoing
significantly hurts India’s of the country’s automo ve auto sales. In early 2020, just challenge of COVID-19, the
economic outcomes. Employ- sector & iden fied impera ves as the industry was expected Indian automo ve industry
ment is also hard hit when and enablers for success. to recover, the COVID-19 seems to be overcoming
most of its challenges, and
many are now in the | February 2021 F A D A Journal 43


rearview mirror. The sector These developments will and go into a higher gear. Impera ves for the Indian
is also benefi ng from new help create opportuni es at automo ve industry
tailwinds, such as global all levels of the automo ve From our research, we
supply-chain rebalancing, value chain. have dis lled a set of Three impera ves are crucial
government incen ves to impera ves and enablers for successful companies:
increase exports, and Industry par cipants are that industry par cipants pursuing growth, increasing
technology disrup ons that now beginning to see a clear must understand as they resilience, and striving for
create white spaces. highway, where they can a empt to fast-track their leadership by promo ng
push on the gas, accelerate, value-crea on trajectories. disrup ve trends.

44 F A D A Journal February 2021 |


Focussing on domes c, customers. Simultaneously, segments, such as 2W and 3- downstream value chain could
interna onal, & downstream they can open addi onal wheeler (3W), and they have provide an addi onal avenue
growth avenues for new customers to learned from this experience. of growth for Indian
enter the market. Some Indian products, with their automo ve companies. On
Growth is oxygen for any automakers now offer leasing high customer value and average, the upfront cost of a
business, more so if the op ons, especially in the PV func onal quality, are likely to vehicle only accounts for 20 to
industry is coming out of a segment, but their offerings offer a strong fit for emerging- 25 percent of life me
challenging phase. For that have narrow limits for vehicle market customers. ownership costs. Other major
reason, players in the Indian type, lease dura on, and other Tradi onally, Indian components include fuel,
automo ve industry should features. As millennials’ automakers have only pursued service, financing transac ons
consider pursuing all mobility needs evolve and interna onal opportuni es (such as vehicle loans and
promising opportuni es. move away from direct sporadically. Now, however, insurance), and resale value.
ownership, the development they should double down on
The domes c market. While of be er leasing op ons will select interna onal markets Globally, some OEMs have
first- me buyers have long become impera ve within the and invest in expanding their already ventured into these
dominated the Indian domes c market. brand, distribu on, and downstream-value-chain
automo ve market, the focus service reach to build a las ng elements through new
is shi ing to repeat customers. With digital channels gaining franchise. businesses, such as BMW’s
With the government bringing popularity among India’s Secure, which offers finance
out a revamped scrappage consuming classes, This may be the best and insurance services. Others
policy, the resale market may automakers must develop opportunity for Indian have pursued partnerships,
become even more important. direct-to-customer op ons. A automo ve suppliers to such as Ford’s agreement with
If automakers want to best-in-class digital and expand interna onally in Geotab, which allowed it to
concentrate on repeat buyers, analy cs transforma on can decades because of recent enter the vehicle-data value
they must develop new also help leaders differen ate tailwinds. As global chain. Even in India, there have
strategies to facilitate the themselves from the automakers rebalance their been some early experiments
resale of exis ng vehicles compe on. supply chains, they are looking in downstream ventures, such
across categories. Already, for sourcing hubs outside as Service Mandi from Ashok
some start-ups have Interna onal opportuni es. China. Simultaneously, the Leyland and True Value by
a empted to simplify and Interna onal markets, Indian government is offering Maru Suzuki. First movers in
improve the process of buying especially those in Africa that produc on-linked incen ves, this space have an opportunity
and selling used cars. If are similar to India, are totaling $7.5 billion over the to shape a digitally enabled
automakers proac vely shape experiencing a rise in per- next five years, to encourage downstream ecosystem that
the resale landscape, they capita GDP and reaching the exports. Automo ve suppliers provides a one-stop solu on
could help revive urban levels at which automo ve can leverage their strengths, for various customer needs,
demand. sales tend to expand including their compe ve including scheduled service,
significantly. Indian companies costs, process exper se, high breakdown service, resale, and
Indian automo ve players have already navigated this quality, and innova on focus, purchase of personalized
should also a empt to bring transi on at home and can to pursue interna onal growth accessories. Such
value-seeking customers back follow the same script to and leverage the recent comprehensive solu ons
into the market. This segment succeed in interna onal tailwinds. Many Indian would create a best-in-class
shrunk because the Indian markets. By expanding inter- companies have already done ownership experience.
government’s Bharat Stage VI na onally, Indian automakers so successfully. For instance,
emissions norms increased will increase growth and sales exports account for about 60 Achieving greater resilience in
prices by about 7 to 9 percent volumes while diversifying percent of revenues at the opera ons, especially the
for 2Ws and 3 to 5 percent for risks and reducing demand leading forging player and product, manufacturing, and
cars. To lower the upfront cost cyclicality. between 20 to 40 percent at supply-chain dimensions
of owning a vehicle, many re companies. With
automakers should consider When expanding produc on-linked incen ves The last couple of years have
embarking on a new wave of interna onally, Indian con nuing, more companies laid bare a simple fact:
produc vity transforma on. automakers will not have to could achieve similar results. opera onal efficiency must be
start from scratch. Their matched with opera onal
Automakers can innovate by brands already have a strong Downstream value chain. resilience. A McKinsey study
crea ng alternate ownership global presence in certain Expanding into the has es mated that supply-
op ons for prospec ve | February 2021 F A D A Journal 45


chain disrup ons, some las ng challenges. Globally, auto- automo ve suppliers to por olio does not cover.
over a month, could occur makers are moving very fast to double down on building a Likewise, automo ve players
every 3.7 years across incorporate digital and strong posi on in the global EV can benefit from working with
industries. Amid such analy cs into their daily work. supply chain. That will help partners with complementary
uncertainty, companies will Consider Volkswagen, which suppliers gain addi onal capabili es or by sharing the
need opera onal resilience has embarked on a massive revenues—an important risks associated with certain
across the en re value chain, Internet of Things and cloud- considera on, since most have ventures.
especially within product enabled digital transforma on started to tap out
development, manufacturing, of produc on and logis cs opportuni es in the local Globally, automakers are
and supply chain. across its 124 plants globally. Indian market. A move into EV reimagining their strategic
will also help suppliers partnerships to up their game
To increase resilience, Becoming a leader by diversify their por olios and across all the impera ves
automakers should undertake promo ng disrup ve trends, reduce risks related to market described above. Some are
a thorough review of their especially within emerging demand. working at the product level,
product por olios to make markets as GM and Honda are now
them more customer-centric. The ACES disrup ons may doing with EV pla orms and
They should also reduce the The mobility landscape will prompt global automakers to ba ery technology. Others are
number of product variants to fundamentally transform over reassess India’s posi on in focusing on manufacturing or
become more focused. In the next ten to 15 years, with their global priori es. In supply-chain management, as
addi on, automakers should ACES trends—autonomous addi on to increasing sales seen in the partnership among
reexamine their product- driving, connected cars, within the country, they may Volkswagen, AWS, and
pla orm architectures and electrified vehicles, and shared see new opportuni es to turn Siemens.
strive to reduce complexity by mobility—amplifying their India into a global
emphasizing modular product impact. The evolving manufacturing center. Some As Indian automo ve players
designs. This strategy can landscape presents a perfect leading mul na onal pursue new partnerships, they
reduce part counts by 20 to 30 opportunity for Indian automakers, including Ford should clearly establish their
percent and improve the cost automakers to lead the and Volkswagen, are already core strengths (the “gives”
base by decreasing material disrup ve changes occurring ramping up their exports play from their side), as well as the
costs by 6 to 8 percent. One across segments and gain a and increasing the scale of areas where strategic
leading Indian car manu- compe ve advantage. their Indian opera ons to sell partnerships will be helpful
facturer already has more than more products from those (the “gets” from the partners).
seven of its car models and Today, only about 2 percent of facili es abroad. They can then move from
over 60 percent of its sales new vehicles sold globally are engaging in transac onal
volume on one pla orm. Other electrified. The opportunity Enablers for the Indian rela onships to forming
automakers should aim to cut ahead is much larger, and the automo ve market “win–win” partnerships with
the number of their vehicle winners and losers are yet to long-term benefits.
pla orms by half or more to be decided. Indian players can Three enablers are essen al in
achieve lower cost structures become homes for innova on, helping automakers to Building the organiza on of
and faster me-to-market with both domes cally and in succeed in the evolving Indian the future
new products. similar markets abroad, automo ve landscape.
supplying complete products, Automo ve organiza ons
As the manufacturing and aggregates, or components Reimagining the partnership have tradi onally had a
supply-chain philosophy worldwide. In tradi onal ecosystem ver cal func onal structure
expands from being just-in- micromobility segments (2W with a clear hierarchy and
and 3W), Indian players can be The days of going it alone are repor ng lines. That has
me to just-in-case, the global leaders from day limited, since the increasing served their needs very well
companies can win by one. For PVs, such as cars and threshold of required for many decades, but it is
embedding digital and ana- SUVs, and light CVs, Indian investment o en necessitates increasingly crea ng
ly cs into their opera ons. In players can win by following pooled resources. Companies bo lenecks and preven ng
addi on to reducing the frugal design requirements may also find that they can companies from being nimble
inefficiencies, this strategy will essen al for emerging access new customer seg- and agile in the face of change.
help companies build the markets. ments by working with other In fact, many business experts
robustness and resilience companies that offer claim that companies in other
needed to respond to Industry disrup ons also complementary products in industries should not follow
unpredictable external create a huge opportunity for areas that their current the example of automo ve

46 F A D A Journal February 2021 |


organiza ons, since their Organiza ons should move drive the transforma on. efficiency, quality, and
siloed structures slow them from these heuris cs to more throughput in their plants.
down. scien fic and quan fiable T2V The first wave of change for They have also used
measures to iden fy and fill automakers is underway. technology to make smarter,
For best results, automakers the most cri cal roles. To help Leading companies get 20 to system-driven decisions on
should reimagine their employees build the 30 percent more customer produc on and supply-chain
organiza on by developing capabili es needed in cri cal enquiries in their sales system planning. Now, however,
two end-to-end systems for roles in the future, companies by engaging in targeted digital automo ve suppliers should
cri cal processes: A Product- should create data-based, marke ng and partnering with undertake an end-to-end
Crea on and Development individualized leadership digital pla orms to generate digital and advanced-analy cs
System (PCDS) facilitates the development plans that are leads. They are also deploying transforma on that focuses on
product-development process connected to their business advanced analy cs to create business impact rather than
from concep on through objec ves. personalized sales pitches in technology.
vehicle development for real me, increasing lead
produc on-ready models. A The focus on developing new conversion by 5 to 10 percent. It should have a user-centric
Customer-Value Delivery systems combined with a T2V Globally, innova ve brands design and involve selec ve
System (CVDS) provides a view may help companies such as Tesla and Lynk & Co investments in cri cal talent,
complete opera onal leapfrog to the next level of view digital channels as their including tech specialists. To
framework for all processes, performance and successfully future, as opposed to the avoid unnecessary delays,
from manufacturing to sales execute all their major tradi onal brick-and-mortar companies should adopt an
and service, thereby reducing impera ves. channel. Closer to home, a agile approach when
siloes and building agility. leading car brand announced a developing and tes ng digital
Transforming the organiza on massive increase in digital and analy c use cases.
Automakers must also build a through digital and analy cs enquiries—approaching 2
talent-to-value (T2V) view at million—and a significant gain The automo ve sector will
each level of the organiza on Digi za on and advanced in digital sales to levels over play a central role in India’s
by iden fying the most cri cal analy cs are already enabling 200,000 over the past 18 aspira on to become a $5
roles and staffing them with unprecedented produc vity months. trillion economy. The
top employees. Although this improvements and increasing recovery from the COVID-19
sounds simple, most orga- the focus on customers. Most Automo ve suppliers have crisis has created a unique
niza ons fall into the trap of leading automo ve tradi onally leveraged situa on in which
using hierarchy, rela onships, organiza ons have ar culated technology much more on automakers can reinvent
or intui on to make decisions a bold aspira on for unlocking back-end opera ons, with their industry and emerge
about the appropriate talent real bo om-line impact from many use cases focusing on stronger, both within India
for different roles. these technologies and have enhancing yield, energy and globally.
created a CXO-level role to | February 2021 F A D A Journal 47

Consumer Case Studies

National Consumer Disputes Redressal Commission

JUSTICE DEEPA SHARMA 1) The present Revision Volkswagen Group Sales Complainant, there was
PRESIDING MEMBER Pe on under Sec on India P. Ltd. & Anr., RP no requirement on the
21(b) of the Consumer 567/2017 dated part of the Pe oner to
Skoda Auto Volkswagen Protec on Act, 1986 (for 18.03.2020, NCDRC ”, produce any document
India Pvt Ltd - Petitioner short “the Act”) is filed “Hyundai Motor India and hence, the Foras
challenging the order Limited vs. Surbhi Gupta & below have erred in giving
Versus dated 23.09.2019 of the Others, 2014 SCC Online the findings against the
State Consumer Disputes NCDRC 487”, “Classic Pe oner simply on the
M/s Meghana Redressal Commission, Automobiles vs. Laila basis that the Pe oner
Corporates Pvt Ltd & Anr Karnataka (for short “the Nand Mishra & Anr., I did not produce any
– Respondent(s) State Commission”) in (2010) CPJ 235 (NC)”, “S. evidence. It is further
Appeal No.2161 of 2011 Suncon Realtors P. Ltd. Vs. argued that the vehicle
Revision Petition No. 589 whereby the order dated Nissan & Ors., FA had already run for more
of 2020 07.06.2011 of the District 1744/2019 dated than 58,000 kms. by the
Decided on 24/06/2020 Consumer Disputes 20.08.2019 (NCDRCDC)”, date the Complaint was
(Against the Order dated Redressal Forum, Md. Hasan Khalid vs. filed and it is s ll
23/09/2019 in Appeal No. Bangalore (for short “the General motors India P. roadworthy and
2161/2011 of the State District Forum”) in Limited, 2018 SCC Online therefore, the finding that
Commission Karnataka CC/591/2012 was NCDRC 667”, “Maru the vehicle had suffered
confirmed and the Appeal Udyog Limited vs. Susheel with manufacturing
was dismissed. Kumar Gabgotra & Ors., defect is erroneous. It is
(2006) 4 SCC 644” and further argued that the
2. The present Revision “Easy Elevators India P. District Forum has
Pe on has been filed by Ltd. Vs. Nissan Motors & erroneously relied upon
the Pe oner, Opposite Anr. 2018 SCC Online an internet download. It
Party No.2 in the original NCDRC 1430”. is argued that the
complaint, alleging that impugned order whereby
the order of the Foras 3. It is further argued that the order of the District
below needs to be set the Respondent no.1, the Forum was upheld needs
aside as it suffers with Complainant is a Company to be set aside.
illegality and infirmity. It and since the Company
is submi ed that the Foras has purchased this car, it 4. I have given though ul
below have failed to take cannot be said that it had considera on to the
into account the fact that been purchased for arguments of learned
there was no expert personal use and Counsel and have also
opinion regarding the therefore, the perused the relevant
defect in the car and Complainant is not a record.
therefore, the finding that Consumer. It is further
the car was defec ve is argued that every me 5. The brief facts of the case
erroneous. Reliance has when the car had been are that the
been placed on “Maru brought to the service Complainant/Respondent
Udyog Limited vs. sta on, i.e., to no.1 had purchased a
Hasmukh Laxmichand & Respondent no.2, the car Skoda Fabia Ambientee
Anr., 2009 SCC Online was repaired and the car manufactured by the
NCDRC 74”, “Gopal Complainant had signed a Pe oner, Opposite Party
Aggarwal vs. Metro sa sfac on note. It is No.2, from the Opposite
Motors & Anr., 2019 SCC further argued that since Party No.1, the
Online NCDRC 754”, all the documents had Respondent no.2, the
“Amar Kumar Saraswat vs. been produced by the dealer for a sum of
₹8,76,057/- on 24th

48 F A D A Journal February 2021 |

Consumer Case Studies

January 2008. By the me What Order? electrical problems which within two years itself
it had filed the Complaint, has replaced certain parts proves that the vehicle had
it had been taken to the 7. The District Forum has also taking money from the manufacturing defects.
service sta on for repairs observed the following complainant within one This view is fully
25 mes. The details of facts: year from the date of corroborated by IV (2007)
the repairs done by purchase of the vehicle CPJ 1 (NC), 111 (2008) CPJ
Respondent no.2 are 37. The opposite party had electrical problems. 107, III (2008) CPJ 17 (NC),
men oned in the job cards No.2-has admi ed in its Within one year two III (2008) CPJ 32 (NC), 11
produced by the version and affidavit on months the vehicle had (2008) CPJ 468, II (2008)
Complainant/respondent 06.11.2008 the vehicle has several problems! how CPJ 308, IV (2008) CPJ 369,
no.1. No evidence has been repaired by it and the could that happen? There IV (2008) CPJ 130, III
been produced by the blower was replaced. Why is no answer. (2004) CPJ 637, I (2006) CPJ
Pe oner in contrast to the opposite party has not 196. Discussing or quo ng
the conten ons of the produced the documents 39. Further the opposite elaborately judgment of
Respondent with respect to this service par es admits that Higher Court is prohibited
no.1/Complainant. The or job-card and any other regarding ABS, braking by law in the regula on
finding of the Foras below documents which are system, blower noise and No. 18(5) of the Consumer
regarding defects in the available with it. The AC malfunc oning, Protec on Regula on
car is based on these opposite par es has steering hard, the vehicle 2005; Quo ng these
evidences, i.e., the job admi ed that on has been brought to it on judgments will only bulk
cards which are admi ed 24.04.2009, 24.06.2009, 29.01.2010, 08.02.2010, and bulge the records. This
documents. It is clear that 17.08.2009, 29.12.2009, 22.02.2010, 03.03.2010, is also with respect to the
the Respondent no.2 who 03.03.2010, 21.04.2010, 21.04.2010 and li ga on in the (2008) CPJ
did the repair job and is 01.09.2010, 21.09.2010, 05.05.2010. This itself 111 (NC) and in SLP(c)
authorised dealer of the 26.10.2010 the vehicle clearly goes to show that, 21178-21180 of 2009 by
Pe oner did not file any had been brought, to it for the vehicle had several the Apex Court dated:
Wri en Statement. There AC malfunc oning and it manufacturing defects 24.11.2010 in a case
is no evidence on record to has stated that it has within 27 days from the between Sri. C.N.
show that these job cards a ended to. Why the date of purchase of the Anantharam -V/S- Fiat
are not genuine concerned job-card and vehicle. Whether it is India Limited and Another
documents. Even the the alleged materials, within warranty or a er cited by learned counsel
genuineness of these job alleged documents were warranty; how could the for the opposite party.
cards is not disputed by not produced by the vehicle develop these
the Pe oner. opposite par es? This problems? There is no 41. The conten on of the
itself clearly goes to show answer. opposite party No.2 is that
6. The District Forum in its that on eight occasions they have no objec on to
that too within one year 40. That means within a get the vehicle examined
order dated 07.06.2011 five months from the date gap of two years the by any expert and they are
of purchase of the vehicle vehicle had been taken to ready for it. If the opposite
had framed the following it had problems, the opposite par es for par es had any iota of
some mes more spare repairs more than 25 truth regarding this they
issues on the basis of the parts has been replaced, should have made an
this itself clearly goes to mes and the opposite applica on seeking
conten ons of the par es. show that the en re par es has charged appointment of an expert
mechanism of the vehicle Rs.98,983/- for repair and at the cost of the opposite
The relevant paragraphs was wrong it has service charges. This par es, got it examined
manufacturing defect. clearly goes to show that and given the report, but
are reproduced herein: the vehicle had that has not been done.
38. Further it is seen that manufacturing defects. The voluminous records
4. The points that arise on 08.02.2010 and in May- How can a new car produced by the
2010 the vehicle had been develop all these things complainant establishes
for our considera on brought to the opposite that too within a year from that the vehicle had the
par es. According to the the date of purchase. manufacturing defect.
are:- opposite par es for Taking the vehicle for large
number of me for repairs

Whether there is

deficiency in service?

Whether the

complainant is a

consumer? | February 2021 F A D A Journal 49

Consumer Case Studies

These records are the 43. The other conten on is order had issued the service sta on for 25 mes
records of the opposite that the vehicle had run for following direc ons: within a short span and
par es; per contra about 58,000 kilometers in relying on the job cards
opposite par es never a span of these two years, 1. The Complaint is produced by the
produced even a scrap of which nullifies the allowed-in-part. Complainant has held as
paper to substan ate their conten on of the under:
claim. Even the job-cards complainant that the 2. The opposite par es
and other allied records vehicle had any shall pay ₹4,50,000/- to 8. The District Forum
which are available with manufacturing defects. the complainant within 30 noted that life span of
the opposite par es are This is an untenable days from the date of this vehicle as 15 years and
not produced. Hence an conten on. We are in order. On receipt of the vehicle had run 58,000
adverse inference has to India. A person marrying amount the complainant kms. It appears the
be drawn against the another person, without shall surrender the SKODA complainant has taken
opposite par es in this knowing that the other car bearing registra on vehicle for service
regards. what prevented person is nagging, the No.KA-04-ME-8736 to the frequently because of
the opposite par es from person pulls on for some opposite par es within manufacturing defect. In
seeking appointment of an three days from the date the circumstances, it also
expert to give their me for a year, two or of receipt of the amount. appears though some free
opinion? There is no three and when it becomes services are provided for 3
answer. untolerable then the 3. The opposite par es are years and replacement of
person goes to the court also directed to pay spare part, the fact
42. The OP itself is the and not otherwise. The ₹2,000/- to the remains that vehicle being
manufacturer of the car same thing happened in complainant towards cost taken to the authorised
therefore they themselves this case. The vehicle has of this li ga on. service centre of the
are the expert; the been purchased by the manufacturer, then
opposite party would have complainant, weighted for 4. Both the par es are also necessarily it speaks to the
get the car examined by two years pulled on the directed to submit the fact that vehicle was
their expert regarding the vehicle for 58000 compliance report to this defec ve. Materials speak
allega ons made by the kilometers, it does not Forum with necessary to the fact problems arose
complainant in annexure- mean that the vehicle had documents within 45 days. during warranty period
1 and 2 by the complainant no manufacturing defects. itself. Complainant had
along with their records The problems are s ll 5. The opposite par es taken vehicle for repair on
and taken his opinion and exis ng. It is seen that shall send the amount as many mes is not at all in
produce it before this regarding the same model ordered above in Serial dispute. When such is the
forum. Even that has also of SKODA Fabia car Jyo Nos.2 and 3 by way of D.D. situa on, Opposite
not been done. Hence an Madan and 30 others had to the complainant Party/appellant should
adverse inference has to given complaint to the through registered post have placed job cards to
be drawn against the opposite party and have acknowledgement due. indicate nature of repairs
opposite par es. Thus it agitated as seen from the effected by them on many
lies ill on the mouth of the internet downloads 6. Return the extra sets
opposite par es to say produced by the filed by the par es to the mes. It is not explained by
that they are ready to get complainant. None of concerned as under appellant/Opposite Party
any expert appointed in these things have been Regula on 20(3) of the as to why they did not
this case. Nobody has challenged by the opposite Consumer ’s Protec on produce job cards before
sought the permission of par es. That mean this Regula on 2005. District Forum. In that view
the forum or interven on model of the SKODA Fabia of the ma er, it
of the forum for the is having manufacturing 7. Send a copy of this order corroborates say of
appointment of any defect; it is not the one car to both par es free of complainant regarding
expert. Under these but almost all the cars of costs, immediately. repeated troubles of the
circumstances there is no the same model. Hence we vehicle throughout which
necessity that is required hold the above points 9. The State Commission in itself indicates about
for appointment of an accordingly.” Appeal a er re- manufacturing defects of
expertasrightly contended. apprecia on and re- the vehicle. For repairs
8. The District Forum vide its assessing the evidences on more than ₹98,983/- has
record, taking note of the
various defects the vehicle
was suffering with and for
which it was taken to

50 F A D A Journal February 2021 |

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