Auto dealers seek protection from sudden departures of global automakers, Auto News, ET Auto

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Addressing the third Auto Retail Conclave, which was also attended by Heavy Industries Minister Mahendra Nath Pandey, FADA Chairman Vinkesh Gulati said the ministry allows multinationals such as car manufacturers to set up businesses in India and with the initiative of Prime Minister Narendra Modi of Make in India, many other multinationals will continue to come to India.

New Delhi: The Federation of Automobile Dealers Associations (FADA) on Tuesday called on the government to put in place a system to protect dealers from sudden exits by multinational manufacturers from the country, saying it not only hinders entrepreneurship but also harms to the value of the Indian brand. The umbrella body of auto dealers across the country has also demanded industry status for the auto retail sector in order to be able to get priority loans from banks, external commercial loans, financing from major lenders, private equity investments, easier access to national and global funds. and more tax benefits.

Addressing the third Auto Retail Conclave, which was also attended by Heavy Industries Minister Mahendra Nath Pandey, FADA Chairman Vinkesh Gulati said the ministry allows multinationals such as car manufacturers to set up businesses in India and with the initiative of Prime Minister Narendra Modi of Make in India, many other multinationals will continue to come to India.

“Once they start their journey, they refer to dealers as their long-term partners. It is their sudden exits that hamper both an entrepreneur’s zeal in doing business with them and the customers who are left behind. for account without proper support for after-sales service, “he added.

Stating that this not only tarnishes the names of the dealers in the company as they are the face of the brand, Gulati said, “It also tarnishes the value of Brand India. Millions of rupees are lost as it kills the vision of a entrepreneur to go into business again. ”

While an entrepreneur invests all of his savings to enter the auto trade with a long-term horizon, the deals he has with his principal are sometimes only annual, Gulati added.

“I will humbly ask your ministry to work on protecting the rights of car dealers and thus create a sense of balance in this industry, as more and more international players are entering the Indian automotive market,” he said. -he declares.

The exit of cult American bicycle maker Harley Davidson last year caused heartburn in its dealer community. Likewise, the dealerships of U.S. auto major General Motors were left behind when the company decided to pull out of India in 2017.

Seeking industry status for the automotive retail sector, Gulati said he employs over 45 lakhs, while contributing INR 95,000 crore in direct and indirect taxes and other levies to the public treasury.

“An industry status will give us better financing options, as the sector is inherently capital intensive,” he said, adding that “this will greatly boost the confidence of the sector and lead to the intensification of infrastructure leading to new investments “.

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