Auto Dealer Organization Wants Exit Regulations for Foreign Auto Manufacturers, Auto News, ET Auto



New Delhi: The body of car dealerships, the Federation of Automobile Dealers Associations (FADA), on Tuesday urged Heavy Industry Minister Dr Mahendra Nath Pandey to set exit rules for car manufacturers, citing the reason for India’s exit from the world’s largest automobile manufacturer General Motors.

Speaking on the sidelines of FADA’s 3rd Automotive Retail Conclave on Thriving Through Disruption, FADA President Vikesh Gulati said, “The United States has a franchises, UK has its own code of conduct, Australia has its own car dealership code. , but in India we don’t have such a code or regulation, there is only one company exit clause, that’s all. ”

FADA therefore wanted the heavy ministry to set up a process as Western countries have regulations to protect the rights of their consumers and resellers.

Citing the latest example from US automaker General Motors (GM), Gulati said, “GM is the latest example, which is one of the two major auto makers in the world, but in India they came out overnight. . lakhs of GM cars and their customers cannot have the service. We have also raised this issue with the Ministry of Transport, the Prime Minister and the Ministry of Heavy Industry. We were able to lobby these companies where they allowed dealers to service less than two years to the customer. So it was a small victory for us, who put in place a plan for the future. “

The FADA president said this similar thing happened with UM Lohia, MAN Truck and Bus, Harley Davidson, as Harley then backed up and came back as a hero again, but there was a void for two years when customers weren’t happy because of it.

If the company leaves India overnight and its services are not available, it becomes junk. We therefore urge the minister to protect the rights of consumers, to compensate the dealer who has invested all the money in the business and to make a commitment for the future. We are meeting with the minister again next month with a plan that we expect.


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