Auto dealers to cut showroom infra, jobs

Chennai: Motown will prune its dealer infrastructure as well as job cuts in the network as lower volumes squeeze profitability among auto dealerships. In a survey by the Federation of Automobile Dealers Associations (FADA), automobile dealers stressed on the ‘strong need’ for cutting both network and manpower since the volumes were too small to be profitable.
“As compared to the slowdown we have not seen as many bulk closures of dealerships during the pandemic but there have been a lot of rightsizing as dealers have opted for smaller showrooms, fewer outlets and reduced manpower strength,” said FADA president Vinkesh Gulati. Around 286 dealerships shut down last year due to the slowdown impacting 32,000 jobs.
“With profitability and volume under pressure, there is “stress in metro and tier 1 dealerships though rural outletss are doing better and some are even hiring,” added Vinkesh Gulati. Auto dealers have already seen a 15%
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Auto dealers mulling infra, manpower rationalisation: FADA

Auto dealer body FADA on Thursday said dealers were looking for rationalisation of their assets as well as manpower, especially in bigger cities, to tide over challenging business environment.

FADA said the stress was more on dealerships in bigger cities due to the prevailing situation, compared with outlets in smaller towns and rural areas.

“Dealers are looking at moving to smaller places with relatively low rent and also looking at rationalisation of manpower… to carry forward in these challenges times,” FADA President Vinkesh Gulati told reporters.

To keep the sector alive, FADA is also talking to auto companies to keep inventory in check during the festive season this year in order to avoid overstocking at dealer-end as witnessed in the last two years, he added.

“We are speaking to SIAM and auto companies to keep inventory in check during this festive season as we don’t want to [face the] same

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Auto dealers looking at rationalisation of infra, manpower: FADA

New Delhi, Sep 24 (PTI) Auto dealer body FADA on Thursday said dealers were looking for rationalisation of their assets as well as manpower, especially in bigger cities, to tide over challenging business environment.

The auto dealer body said the stress is more on dealerships in the bigger cities right now due to the prevailing situation as compared with outlets in the smaller towns and rural areas.

‘Dealers are looking at moving to smaller places with relatively low rent and also looking at rationalisation of manpower in order to carry forward in these challenges times,’ FADA President Vinkesh Gulati told reporters.

In order to keep business sustainable, FADA is also talking to auto companies to keep inventory in check during the festive season this year in order to avoid over stocking at dealer-end as witnessed in the last two years, he added.

‘We are speaking to SIAM and auto companies

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