India’s decision to pull out of India and stop all vehicle manufacturing in the
country has come as a major setback and shock to the Ford dealers in the
of Automobile Dealers Associations (FADA) President Vinkesh Gulati said,
"The Auto Retail fraternity is really shocked to hear another US auto
major Ford India's announcement where it has said that it will shut down
production with immediate effect. While trying to handle dealer anxiety, Ford
India President & MD, Mr Anurag Mehrotra called me personally and assured
that they will adequately compensate dealers who continue to offer vehicle
service to customers.”
this assurance, Gulati said that this is not enough as there are 170 dealers
who in turn have 391 outlets and have invested Rs 2,000 crore for setting up
their dealerships. While Ford India employs 4,000 people, dealerships employ
around 40,000 people without displacing them from their home locations thus
being continuously skilled and up-skilled all this while. Ford India Dealers
currently hold 1,000 vehicles which amount to Rs 150 crore via inventory funding
from reputed Indian Banks. They also carry demo vehicles which are 100's in numbers.
Moreover, Ford India also appointed multiple dealers until five months back.
Such dealers will be at the biggest financial loss in their entire life, Gulati
has been requesting the government to roll out Franchisee Protection Act as due
to its unavailability, auto dealers are not adequately compensated like their
counter parts in Mexico, Brazil, Russia, China, Indonesia, Malaysia, Japan,
Italy, Australia, Sweden and many other countries, where this law exists. After
General Motors, Man Trucks, Harley Davidson, UM Lohia and multiple fly by night
Electric Vehicle Players, Ford India is the 5th biggest exit from Indian
markets since 2017.
Committee on Industry in its report number 303 which got released in December
2020 had recommended Ministry of Heavy Industries that the Government should enact
the Franchise Protection Act for Automobile Dealers in the country, so that it
is a win-win for both, the Auto Original Equipment Manufacturers (OEMs) as well
as the Auto Dealers, but will also be beneficial to customers in the long run,
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