FADA concerned over illegal sale of 2-wheelers by unauthorised multi-brand outlets

 

 

The Federation of Automobile Dealers Associations (FADA), has expressed concern over the illegal practice of unauthorised multi-brand outlets (MBOs) selling two-wheelers.

FADA has reported that these MBOs are acquiring unregistered vehicles in bulk from dealers and reselling them to customers at discounted rates, higher than the prices offered by original equipment manufacturers (OEMs) through authorised dealers, without any commitment to aftersales service. This has not only impacted the legitimate dealerships but has also shaken customers’ confidence in the brand and dealer partners. Furthermore, as per FADA, these MBOs indulge in evasion of GST, Income Tax, issuance of fake/ undervalued insurance policies, delivery of vehicles without registration/ HSRP and helmets, resulting in revenue loss on various fronts. FADA states that it has reached out to Eknath Shinde, Chief Minister, Government of Maharashtra, Vinod Aggarwal, SIAM President, and the Transport Commissioners of Mumbai and Delhi, urging them to take stringent action against these MBOs and ensure their compliance with industry standards and regulations.

The Chief Minister of Maharashtra and Transport Commissioners of Mumbai and Delhi have initiated action against this illegal practice. The Delhi Transport Department is also taking stringent action against the outlets operating such illegal trade practices. The authorities had already issued notice on trade certificate cancellation to such business units.

Vivek L Bhimanser, Transport Commissioner, Maharashtra commented, “We have impounded over 6,000 vehicles, and trade certificates of over 50 dealers have been suspended for a week as of now”.

Manish Raj Singhania, President of FADA said, “We have raised the issue of unauthorised MBOs in the two-wheeler industry, which are not certified as bonafide dealers and sell unregistered vehicles without any trade certificates or aftersales services. This has caused many legitimate two-wheeler dealerships to shut down, making their businesses unviable. Such activities not only tarnish the image of dealerships but also harm brand image and values”.