Auto dealers' satisfaction improves; viability, policy concerns remain: FADA

While auto dealers are increasingly optimistic, concerns related to dealership viability and policy collaboration with OEMs.

The overall satisfaction of automobile dealers with regards to their relationship with manufacturers has improved but dealer viability and policy issues remain major concerns, Federation of Automobile Dealers Associations said on Wednesday.

In its 'Dealer Satisfaction Study 2023' conducted in collaboration with PremonAsia, a consumer insights and advisory services firm, Federation of Automobile Dealers Associations (FADA) said at an aggregate industry level, the average dealer satisfaction score stood at 767 out of a maximum 1,000 points, an increase of 48 points from a year ago. Commercial Vehicle (CV) dealers were the most satisfied with 778 points, followed by mass market four-wheeler (4W) dealers at 769 points and two-wheeler (2W) dealers with 763 points.

"The year-on-year improvements underscore the indispensable value of this annual study in identifying critical issues to fortify the auto OEM-dealer partnership. While auto dealers are increasingly optimistic, concerns related to dealership viability and policy collaboration with OEMs (original equipment manufacturers) require immediate attention," FADA President Manish Raj Singhania said. Going forward, he said, "High-impact areas such as unsold inventory clearance and actions against MBOs (multi-brand outlets) offer ample scope for improvement."

As per the FADA study, in the CV category, VECV Eicher Motors dealers had the highest level of satisfaction with the company scoring 812 points, followed by Tata Motors at 794 points and Ashok Leyland (779). In the 4W mass market, Hyundai Motors India scored 852 points, followed by Maruti Suzuki (791) and Mahindra (774). Honda Motorcycle & Scooter topped the charts in the 2W category with a score of 797, while Royal Enfield (787) and Hero Motocorp (770) took the second and third spots, respectively.