Dealers and automakers have a tumultuous relationship, says FADA President

Says manufacturers' financial clout has led to inequitable contracts between the two

Auto dealers and automobile manufacturers have a tumultuous relationship as the latter’s financial might has led to inequitable contracts between the two, said Manish Raj Singhania, president, Federation of Automobile Dealers Associations (FADA) on Tuesday.

To address this issue of so-called lopsided contracts, FADA has prepared a model dealer agreement (MDA) that seeks to establish balance and equity in the relationship, Singhania said while addressing the delegates at the 4th Auto Retail Conclave.

Through this MDA, the association has tried to address the key issues the Indian dealers face, such as the lack of protection when an OEM (original equipment