FADA Report: Auto Dealers’ Satisfaction Rises, but Viability and Policy Concerns Still Linger


The Federation of Automobile Dealers Associations (FADA) reported that while the overall satisfaction of automobile dealers in their relationships with manufacturers has improved, concerns about dealer viability and policy issues persist. FADA’s ‘Dealer Satisfaction Study 2023’, conducted in partnership with consumer insights firm PremonAsia, revealed that the average dealer satisfaction score for the industry stood at 767 out of a possible 1,000 points. This represents an increase of 48 points compared to the previous year.

Among different categories, Commercial Vehicle (CV) dealers reported the highest satisfaction levels with a score of 778 points. Mass market four-wheeler (4W) dealers followed closely behind with 769 points, while two-wheeler (2W) dealers scored 763 points.

FADA President Manish Raj Singhania emphasized the importance of the study in identifying key issues for improving the partnership between auto dealers and original equipment manufacturers (OEMs). He praised the increasing optimism among auto dealers but expressed the need to address concerns regarding dealership viability and policy collaboration with OEMs. Singhania highlighted areas such as unsold inventory clearance and actions against multi-brand outlets (MBOs) as opportunities for improvement.

According to the FADA study, VECV Eicher Motors dealers scored the highest satisfaction level in the CV category with 812 points. Tata Motors followed with 794 points, while Ashok Leyland achieved a score of 779. In the mass market four-wheeler category, Hyundai Motors India led with 852 points, followed by Maruti Suzuki (791) and Mahindra (774). For two-wheelers, Honda Motorcycle & Scooter ranked first with a score of 797, while Royal Enfield (787) and Hero Motocorp (770) secured the second and third positions, respectively.

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