The Federation of Automobile Dealers Associations (FADA) noted in releasing its Dealer Satisfaction Study 2022 that dealers’ involvement in the policy-making of automotive firms and their openness to direct contributions are among the primary expectations they have from vehicle makers.
According to a statement made on Friday by the Federation of Automobile Dealers Associations, automakers must continue to be more transparent with regards to auto dealers’ viability and adhere to a fair business approach.
The Federation of Automobile Dealers Associations (FADA) stated that among the top demands placed on vehicle manufacturers by dealers are their participation in the decision-making processes of the automotive industry and willingness to accept direct feedback.
FADA President Manish Raj Singhania said in a statement that “while we welcome the efforts shown by OEMs in improving key issues related to sales, delivery, and after-sales, dealers continue to expect higher transparency in matters related to Dealership viability and a fair and balanced business policy.”
The study discovered that sharing training expenses with OEMs and dealers’ participation in policy making are both areas of concern in the four-wheeler mass market sector. Dealer satisfaction with product dependability and customer selection is high.
The ranking of the segment’s most happy dealers was headed by Kia India, with Hyundai Motor India and MG Motor India coming in second and third, respectively. Maruti Suzuki India, the nation’s largest automaker, came in ninth.
According to FADA, dealers in the four-wheel luxury class expressed worries about the turnaround time for parts deliveries as well as the ability of OEMs to fulfil orders for vehicles in accordance with standards and specifications.
The segment leader was Volvo Cars India, followed by Mercedes Benz India.
The study indicated that the buyback/deadstock policy of vehicle manufacturers and sales margins were issues of concern for two-wheelers. These need to be addressed as they directly affect dealer viability.
The study found that Honda Motorcycle & Scooter dealers, followed by Hero Motocorp and Royal Enfield, were the most satisfied.
According to FADA, commercial vehicle dealers were worried about maintaining viability, managing deadstock, and dealing with inventory buybacks by the OEMs.
According to a FADA survey conducted in collaboration with PremonAsia, a consumer-insight-led consultancy and advising organisation, dealers of Volvo Eicher Commercial Vehicles were the most happy in the category, followed by Tata Motors and Ashok Leyland.
Dealers are demonstrating a shift in expectations as post-COVID business normalisation takes hold, with variables connected to sales and delivery and after-sales, particularly warranty difficulties, gaining higher importance than in 2021, according to Rajeev Lochan, founder and CEO of PremonAsia.
Although the OEMs’ advances in these areas are encouraging, he continued, “Dealer business viability expectations and the role of regional sales and service teams in communicating the dealer’s voice back to the head office will be crucial in the near future.”