Parliamentary Standing Committee Recommends New Franchise Protection Act For Auto Dealers
Parliamentary Standing Committee Recommends New Franchise Protection Act For Auto Dealers
There has been a series of market pull outs in the last three years by major auto makers like General Motors, MAN Trucks (a Volkswagen Group brand) and Harley Davidson among others and investments of their dealers are at stake after these manufacturers have announced exit.
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Highlights
Quite a few automakers have exited the Indian market in the last 3 years.
In 2017, General Motors was the first automaker to announce its exit.
The Federation of Automobile Dealers Associations (FADA) has announced that the Parliamentary Standing Committee (PSC) headed by K Keshava Rao has recommended that the Government of India should formulate a new Franchise Protection Act for Auto Dealers. This recommendation was part of suggestions made by the Standing Committee in its Report Number 303 titled D
Car discounts fail to cheer this December
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Dealers say the pick in festival retail means the stock pipeline is not overloaded and many manufacturers are still struggling to hit peak capacity.
Traditionally, December is one of the best months for picking up a bargain.
(This story originally appeared in on Dec 22, 2020)Chennai: A reduced inventory with car dealers due to maintenance shutdowns by auto companies has resulted in little or no discounts this December. Traditionally, December is one of the best months for picking up a bargain. However, this year, incentives are down 67% in SUVs, 61% in sedans and 28% in hatchbacks. The only segment where they are up are MPVs, where incentive count increased by 11%, data from Jato, a firm that tracks auto sector prices, showed. Average SUV discounts and incentives have crashed from Rs 57,569 in December 2019 to Rs 19,075 in December 2020, Jato data showed. In sedans, the average benefit package is down from R
Image for representational purpose only.
The Federation of Automobile Dealers Associations (FADA) has said that the Parliamentary Standing Committee (PSC) headed by Dr. K Keshava Rao has recommended that the government of India should come out with Franchise Protection Act for auto dealers.
This recommendation was part of suggestions made by the Standing Committee in its Report Number 303 titled ‘Downturn in Automobile Sector-Its Impact and Measures for Revival.’
Commenting on this, Vinkesh Gulati, president, FADA said, “I am grateful to the Standing Committee and specially the chairman, Dr. K Keshava Rao, for strongly recommending Franchisee Protection Act for auto dealers. India does not have a Franchisee Law at present due to which the OEM - dealer agreements are highly skewed towards manufacturers. This leads to a tussle in managing dealership operations in various ways, very short terms agreements, and non-existence of a clearly defined
The Federation of Automobile Dealers Associations (FADA) on 16 December announced in a
statement that it along with Automotive Skills Development Council (ASDC) has tied up with Google India to bridge the digital skills gap in the country s auto dealerships and build their capacity in this critical growth driver. ASDC and FADA in partnership Google India aim to prepare over 20,000 auto dealerships to engage with customers in the ongoing and post-pandemic era. The initiative will focus on training over 20,000+ auto dealerships across the country to build an online presence, and provide digital skill training to 100,000+ auto dealers across the marketing and sales divisions.
Parliamentary panel suggests Franchise Protection Act for auto dealers: FADA
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Last Updated: Dec 22, 2020, 03:26 PM IST
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Synopsis
The Federation of Automobile Dealers Associations (FADA), which represents around 15,000 auto dealers across the country, in September advocated for the enactment of such a law in the country, after American cult bike manufacturer Harley Davidson announced its exit from India.
(Representational image)
Mumbai: A parliamentary panel headed by Rajya Sabha MP K Keshava Rao has recommended that the government should enact the Franchise Protection Act for automobile dealers in the country, industry body FADA said on Friday. It said that a fair competition Franchise Act will not only be a win-win for both the auto original equipment manufacturers (OEMs) and dealers, but will also be beneficial to customers in the long run, it said.