MG Motor India become first automaker to accept Model Dealer Agreement: FADA

The Federation of Automotive Dealers Association on Friday said MG Motor India has become the first automaker in the country to accept its Model Dealer Agreement, which gives equal rights to retail partners in running auto sales business. provides.

The association had launched the Model Dealer Agreement (MDA) in September last year, with an aim to make their contracts more balanced, which has traditionally been a “one-sided agreement” between automakers and their dealers.

“The Model Dealer Agreement is an important part of the new age dealer association and management, providing a level playing field for OEMs and dealers to work together to provide Indian customers with some of the most innovative, cutting edge products and services .

“Nine OEMs have heard about the Modern Dealer Agreement in person, and we are pleased to report that each one of them has responded in a very positive way. I am pleased to announce that FADA After two years of hard work, the MDA has been accepted and approved by MG Motor (India) today, marking the successful completion of the journey,” Manish Raj Singhania, President, Federation of Automotive Dealers Association (FADA) said in a statement. marking the beginning of.

One of the major issues that the MDA sought to address was the exodus of foreign auto manufacturers to India and the resultant suffering of dealers.

Without at least one nutritious meal a day, they are at risk
When Ford decided to exit India in 2021, some dealers claimed that just a month before the announcement, the company had issued letters of intent to set up new showrooms.

When General Motors pulled out of India in 2017, dealers were left claiming they had suffered losses of around Rs 1,000 crore, but were offered compensation of around Rs 100 crore. However, the company had maintained that it was providing a fair and transparent transition support package to its dealer partners which was based on a methodology consistent across all dealers.

Singhania said the dealer network is a key component of the automotive ecosystem, providing over 45 lakh jobs and a huge investment, apart from contributing significantly to revenue generation for states and the central government.

“The automotive sector has been on a roller-coaster ride in recent years but has weathered the storm. The last few months have clearly shown signs of revival, commitment among customers and members of the automotive industry And confidence has increased. We are optimistic that this momentum will continue,” he said.