FADA Concerned Due To Illegal Multi-brand Two-wheeler Outlets

The unauthorised showrooms offer only sales, and do not give the requisite documentation and aftersales support

The Federation of Automobile Dealers Associations (FADA), along with the Delhi and Mumbai State Transport Departments, have collectively urged the authorities to act against unauthorised multi-brand two-wheeler dealerships. 

FADA says these dealers acquire unregistered vehicles from legitimate outlets in bulk. They then sell these vehicles to customers at prices higher than those offered by authorised dealers, under the condition of immediate delivery. However, the two-wheelers sold by these unauthorised dealerships sometimes lack the necessary paperwork, and are sometimes even sold with either undervalued or even fake insurance documents. Moreover, these dealerships offer no aftersales support with regards to service/spares, or insurance renewal. 

Now, the average customer cannot differentiate between legitimate and unauthorised dealerships. Hence the bad experiences they face (or, in extreme situations, the cases they lodge in consumer court) are attributed to the respective manufacturer, negatively impacting their brand image. 

Taking note of all this, the Delhi transport department has already started taking action against such illegal dealerships. Moreover, the relevant authorities in both Maharashtra and Delhi have issued notices on Trade Certificate cancellation of a few such businesses.