The Federation of Automobile Dealers Associations of India (FADA) showed a big concern about the ongoing unlawful practice of selling two-wheelers at unlicensed multi-brand outlets in large numbers, resulting in a huge loss of business to the federation. The automobile dealer said that they have filed a complaint and approached many government agencies, asking them to take proper strict action in the matter.
According to a statement released by FADA, it said that the multi-brand outlets (MBOs) are buying unregistered cars in bulk from dealers and reselling them to customers at prices that are higher than those set by original equipment manufacturers (OEMs) through authorised dealers.
Also Read: Passenger Vehicle Retail Sales Declined by 1 Percent in April: FADA
The federation said that all this is happening without making any commitment to provide after-sales service to the customers, which is creating a bad impact on both authorised dealerships’ and customers’ faith in the brand and dealer partners.
The stores also engage in tax fraud, including the avoidance of GST and income tax, as well as the issuing of bogus or devalued insurance policies, the delivery of cars without registration or HSRP, and the sale of helmets, according to FADA.
Reacting about the same, FADA President Manish Raj Singhania said that they have brought up the problem of unlicensed MBOs in the two-wheeler business, who are not authorised as bona fide dealers and sell unregistered cars without any trade certifications or after-sales services, causing several respectable two-wheeler dealerships to shut down.
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