Automobile dealer body FADA on Wednesday sought legislative safeguards to prevent companies from suddenly leaving the country in order to protect the interests of dealers and employees working at dealerships.
Speaking at the 6th Auto Retail Conclave here, newly-appointed Federation of Automobile Dealers Association (FADA) president CS Vigneshwar asked the government to issue strict directions to state governments for full implementation of the CMVR (Central Motor Vehicles Rules).
Addressing Heavy Industries Minister HD Kumaraswamy, Vigneshwar said, “We need your support, and hence we request legislative safeguards to prevent OEMs (original equipment manufacturers) from suddenly leaving the country, causing hardships to dealers, employees and customers.”
Various automotive OEMs such as Ford, General Motors and Harley Davidson have discontinued sales operations in India since 2017.
According to FADA, this has resulted in the layoff of thousands of people working at the dealerships.
Vigneshwar asked Road Transport and Highways Minister Nitin Gadkari to issue strict instructions to the state governments for full implementation of the CMVR.
He also sought the government's cooperation in reclassifying auto dealer workshops from orange zone to green zone.
“Today our workshops practice zero emissions, water recycling, and increased reliance on solar energy, making them environmentally sustainable,” he said.
He said FADA's top policy priorities for the next two years would be the Retail Protection Act and the Model Dealer Agreement (MDA).
“These are not just legislative matters; they are fundamental to securing the future of dealerships across the country,” he said.
Vigneshwar said FADA represents a network of over 15,000 automobile dealers, with 30,000 dealerships, accounting for 90 per cent of the auto retail industry coverage in India.
He added, “We employ over 50 lakh people across dealerships and workshops, which not only contributes to the economy but also contributes to the basic infrastructure of Indian society by providing employment opportunities and promoting inclusive growth.”
