Federation of Automobile Dealers Associations (FADA)
The Federation of Automobile Dealers Associations (FADA) is an apex national body representing Automobile Dealers of India. It was founded in 1964 by four regional Auto Trade Associations to protect and promote the Indian retail automobile market. It is now a registered body under the Companies Act 1956.
The four founder members of FADA are:
- The Automobile Dealers Association of Maharashtra, Mumbai
- The Motor Industries Association, Kolkata.
- The Automobile Traders Association, Delhi.
- Motor Vehicles & Allied Industries Association, Chennai.
FADA has as its members - dealers of passenger cars, commercial vehicles and two/three wheelers. These members deal in sales, servicing of vehicles and sale of spare parts as well. They also arrange finance and trade-ins. In some cases they also sell used cars.
Other than automobile dealers, FADA has representatives of vehicle manufacturers, tyre manufacturers, insurance and finance sectors and other allied industries and trade, as supporting members.
FADA Initiatives & Activities
FADA recognises the importance of effective manpower in driving the auto dealership business in the changed scenario where competition is the buzzword. In order that this activity gets focussed attention, FADA has created a separate training wing called "FADA Academy".
FADA Academy offers opportunities to dealers in different parts of the country to participate in workshops/seminars addressed by experts from the industry, academia, management consultants and experienced dealers.
With the stupendous growth of automobile industry and expansion of dealer network, there is an acute shortage of trained manpower for automobile dealership and workshop operations. FADA therefore ties up with other reputed institutions to conduct training courses to cater to the manpower needs of automobile dealerships.
FADA Academy also organizes from time to time seminars/workshops on subjects of topical interest to automobile dealerships such as Strategic HR, Inventory Control & Management, Allied Business Opportunities, Improving Productivity, Efficiency and Profitability through Use of IT and the like.
Prashaste Training Academy (PTA) has been appointed as training partner to FADA training academy to conduct training programs across the country on "Improving dealer competency series" as part of FADA's initiative on Dealer Competency Development to improve productivity and profitability of dealers across the country. The workshops are conducted in the domains of sales & aftersales for dealer CEOs, Directors, General Managers, Branch Managers and Managers across Passenger Car, Commercial Vehicles, 2-Wheeler & tractor segments applicable for dealers of all OEMs. Innovative post-training implementation is also being taken up by closely following up with the participants at the dealerships.
Automotive Skills Development Council (ASDC)
In addition to conducting its own training programme, FADA has joined hands with SIAM and ACMA to form Automotive Skills Development Council (ASDC) under the aegis of National Skills Development Corporation set up by the Government of India. ASDC aims at addressing the medium and long-term manpower requirements of automotive sector as a whole.
FADA Group 20, later modified to Group 10 (for more effective working), is designed for dealers who mean business. Group 10 meetings take a hard-nosed, no-nonsense look at improving profitability, management skills and problem solving through sharing of experiences and information within the Group. The meetings focus on improving the bottom lines and operational efficiencies. Members are drawn from non-competing dealerships (in the same market) and they discuss the common problems, exchange ideas and analyse data. This gives an opportunity to compare one's dealership performance with other fellow dealers and against franchise benchmark data. The discussions and sharing of data within the Group brings forth the best practices and systems in vogue within the trade for the benefit of automobile dealer fraternity at large
Commencing from 2000, FADA has been organising a biennial Convention of Automobile Dealers, viz. Auto Summit at New Delhi coinciding with the Auto Expo. The Summits were a grand success with each Summit attracting 700-800 participants representing dealerships, vehicle manufacturers, oil companies, banks, insurance & finance companies and media from all over the country and abroad. Practically, all leaders of automotive industry and allied businesses have addressed at this forum in the past on various issues including changing paradigm of auto retail, marketing, human resource management, customer satisfaction, relationship management, etc.
The Summit deliberations helped in creating a tremendous awakening and identifying the challenges & opportunities for all players in automotive business.
FADA also organises Regional Conventions from time to time keeping in mind the fact that many dealers in far-flung areas are not able to attend the Auto Summit because of long distances and their poor connectivity.
In addition, FADA has also been organising Open House Sessions and Regional Meetings which afford opportunities for office bearers to feel the pulse of retail automobile trade and to identify the issues and problems faced by members at regional, state and city levels.
FADA provides Helpline service to its members to guide them on tackling the complexities of laws & procedures governing automobile dealerships. The Helpline service covers diverse areas, like, taxation, motor vehicle registration, environment issues like pollution and emissions, economic policies, land use law, and other rules and regulations affecting dealership business.
Engagement of Service Tax Consultant
It has been observed that automobile dealers across India have been finding it difficult to come to grips with the intricacies and implications of service tax.
To help members deal with the complexities of service tax law and procedures, FADA has engaged a Service Tax Consultant on retainership. All queries regarding service tax received from members are referred by FADA to the Service Tax Consultant. He guides and gives legal opinion on various issues relating to service tax as applicable to automobile dealers.
In the year 2000, FADA took a delegation to USA and visited National Automobile Dealers Association (NADA). It was a very fruitful visit, wherein members learnt a lot about their issues and practices, and gathered information about operations of a dealer association. Since then, several delegations to NADA and other countries have been mounted by FADA. FADA has also hosted and met various delegations from abroad. These exchange of visits have helped understand the auto retails scenario, practices and problems prevailing at global level. To further strengthen networking for information sharing and exchange of ideas, FADA has mooted a proposal for formation of an apex international organisation of auto retail, representing auto retail organisations in different countries across the world. The proposal has been well-received by auto retail associations in US, Russia, Brazil and UK. FADA’s efforts are afoot to bring in auto retail associations in other countries to join this proposed umbrella organisation of auto retail.
FADA brings out a monthly publication “FADA Journal” that covers news, events and developments of interest to automobile dealers. FADA also brings out from time to time other publications focusing on specific topics relevant to the automobile dealership management.
Green & Safety Initiatives
FADA has, from time to time, come up with ‘Green & Safety Initiatives’ for sustainable growth and development of automotive business as a whole. FADA and SIAM have jointly initiated a Voluntary Vehicle Safety Inspection Programme to promote the twin objective of Clean Air and Safe Motoring. Two private insurance companies have also joined the programme and offered to given incentives in insurance premium in the case of vehicles undergoing this voluntary inspection & certification programme.
Automotive Dealership Excellence Awards (ADEA)
Automotive Dealership Excellence Awards (ADEA) has been instituted by FADA jointly with Auto Monitor magazine to recognise and reward those excelling in various areas of dealership management, CSR and community service. The intent of these awards is to bring to the fore the innovative ideas and practices adopted by members of automobile dealer fraternity as well as the CSR and social activities being carried out by them for the benefit of society at large. Other automobile dealers can learn and assimilate such ideas and practices at their dealerships, thereby, promoting all-round excellence in auto retail. CSR and community welfare activities undertaken by automobile dealer fraternity becoming visible through the medium of these awards bring in loads of goodwill of the Government and the society for the trade. Such CSR and community welfare activities ultimately make a business sense, as no business can survive without the goodwill and support of the society.