MG Motor India has become the first automobile manufacturer in the country to accept the Model Dealer Agreement of The Federation of Automotive Dealers Association (FADA), which provides retail partners with an equitable platform in the running of the auto sales business.
This milestone of MG Motor marks the beginning of a positive change and adoption of best practices for a progressive future of the automotive retail business in India, noted the company.
The development was announced at the 12th Edition of FADA's Auto Summit 2023, themed 'FIT & FUTURE READY,' and it provided an overview of the Indian retail automobile industry.
Manish Raj Singhania, President, FADA, had earlier told Mobility Outlook that the current agreement terms between OEMs and dealerships are tilted towards manufacturers, and it was time dealers got an equal say. According to him, the model dealer agreement will remove insecurities in the minds of dealers.
The present contract act of India states that the agreement signed between two parties is the only legal paper that can be followed. However, FADA believes it puts dealers in an uncomfortable position where they cannot ask much from OEMs.