The Federation of Automobile Dealers Associations (FADA) in India, in collaboration with PremonAsia, a Singapore-based firm, has released the results of its comprehensive Dealer Satisfaction Study for the year 2023. This study provides a detailed overview of the Indian automotive retail sector.
In the two-wheeler mass market and commercial vehicle (CV) categories, Honda Motorcycle and Scooter India (HMSI) and VE Commercial Vehicles Limited have maintained their top positions from the previous year. However, the four-wheeler mass market segment has witnessed some notable changes, with Hyundai emerging as the leader, followed by Maruti-Suzuki and Mahindra & Mahindra in the top three.
Overall, the average dealer satisfaction score across the industry has shown a positive increase, rising by 48 points year-on-year to reach a current score of 767. Moreover, ‘Product’ received the highest score in all categories, indicating the industry’s commitment to providing high-quality products that align with consumer preferences.
The survey, conducted by FADA in collaboration with PremonAsia, revealed that Hyundai secured the top position with 852 points, followed by Maruti Suzuki at 791, Mahindra with 774 points, Honda Cars India – which significantly improved its ranking by 153 points – at 763, and Kia at 756 points.
Among two-wheeler brands, HMSI took the lead with 797 points, followed by Royal Enfield at 787, which increased its score by 96 points to secure the second position, and Hero MotoCorp with 770 points. TVS Motor with 633 points and Suzuki Motorcycle India with 600.
In the Commercial Vehicles segment, VECV maintained its leading position with 812 points, while Tata Motors and Ashok Leyland significantly narrowed the gap, improving their scores by 68 and 67 points, respectively. This suggests a highly competitive site in the coming years.
Also Read: FADA Sales August 2023: Auto Sales Up 9 Per Cent; Two-Wheeler Sales Remain Below Pre-Covid Levels
Despite improvements from the previous year, the ‘Business and Viability’ criterion received the lowest score, indicating a crucial area for continuing attention and development. Moreover, observations in the overall segment revealed concerns about deadstock management, OEM inventory buyback policies (across the segment), and the extent of dealer involvement in decision-making with OEM (two- and four-wheelers).
Opportunities for Enhancement:
Inventory Management: There is a consensus on the need for more supportive measures in inventory and carrying-cost management.
Dealer Involvement: Initiatives like active Dealer Advisory Councils could play a pivotal role in enhancing dealer satisfaction, particularly by involving them more closely in decision-making processes.
