In Conversation With FADA on the Letter Written to PM Modi, Lockdown Effect on Auto Dealers

The Federation of Automobile Dealers Associations (FADA) has written to Prime Minister Narendra Modi searching for speedy monetary help from the federal government for the ailing sector amid the nationwide lockdown attributable to coronavirus pandemic. In its letter to the prime minister, FADA sought a whole waiver of curiosity on all class of loans from banks and NBFCs for the lockdown interval. We had a phrase with Vinkesh Gulati, VP, FADA to debate on the letter and the impression of Coronavirus on the auto dealerships.

The business physique, which represents round 15,000 auto sellers, additionally sought extension of four per cent curiosity subvention/subsidy for working capital/mortgage necessities to corporations for a interval of 9 months submit the lockdown.

FADA sought that the wage of individuals employed on the dealerships in the course of the lockdown interval needs to be paid by means of ESIC. The business physique has sought measures like GST minimize on vehicles, incentive-based scrappage coverage and precedence sector tag for the sector to spice up demand post-lockdown interval.

FADA mentioned the auto business has already been reeling below a extreme slowdown for the final 15 months, with greater than 275 dealerships already shut, leading to big job losses.

Over the years, the auto dealership enterprise mannequin has come below extreme pressure with growing prices and low working margins, thereby decreasing the sector’s energy to face challenges like the present state of affairs and its after-effects.