KIA, Honda retained No.1 Spot in FADA's 2022 Dealer Satisfaction Study

FADA (Federation of Automobile Dealers Associations), has revealed the study for 2022 Dealer Satisfaction and KIA has retained the number 1 spot, topping the chart for mass-market passenger vehicle manufacturers.

The findings of the 2022 Dealer Satisfaction Study have been revealed by the apex auto dealer body FADA (Federation of Automobile Dealers Associations). According to the study, Kia Motor India remained the country's top original manufacturer overall, meeting dealer expectations while also topping the chart for mass-market passenger vehicle manufacturers.

Honda Motorcycle and Scooter India (HMSI) maintained its lead in the two-wheeler market, with Hero MotoCorp remaining in second place. In the luxury passenger vehicle market, Volvo displaced Mercedes-Benz from first place, while Eicher Motors retained first place in the commercial vehicle market.

“FADA’s Dealer Satisfaction Study 2022 continues to examine the health of the relationship between Auto Dealers and their OEMs post the covid era. The overall improvements seen across all value chains demonstrate the significance of conducting this annual study in identifying & addressing relevant issues that are critical to strengthening the partnership between the two stakeholders. While we welcome the efforts shown by OEMs in improving key issues related to sales, delivery & after-sales, Dealers continue to expect higher transparency in matters related to Dealership viability and a fair & balanced business policy”, said Manish Raj Singhania, FADA President, on the release of the study.

The research looked at six aspects of the OEM-dealer relationship: viability and policy, product, marketing, sales, after-sales, and training. Although the final survey results showed gains across all market value chains, FADA noted that Business Viability and Policy remained lower than the other categories.

FADA Vice President & Chairman DSS-22, C S Vigneshwar, said, “While product reliability and durability coupled with efficient training programs for sales and service teams remained the strengths cutting across all segments, involvement of Dealer in OEM’s policy making and openness to direct inputs along with overall dealership viability remained the biggest areas to be worked upon.”

The dealer body also highlighted flaws discovered in its segment research. The body expressed concern about OEM sharing of training costs and dealer involvement in policymaking in the mass market 4-wheeler segment. Dealers in the luxury four-wheeler segment expressed concerns about parts deliveries and turnaround times, as well as the OEM's ability to meet orders.

The buyback/deadstock policy and sales margins were identified as areas of concern in the two-wheeler space.

FADA also noted Hyundai and Royal Enfield's notable improvements in their respective segments, with the former rising from fourth in 2021 to second in 2022. Meanwhile, Royal Enfield advanced to third place with a 151-point increase in points.

The research was based on information gathered from a survey of over 2,000 dealerships across the country.