Multi-brand Sales By Unauthorised Outlets Concerning: FADA

  • Published May 10, 2023
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No After sales support or proper documentation offered by unauthorised showrooms

The Federation of Automobile Dealers Associations (FADA) has voiced concern over unauthorised multi-brand outlets selling two-wheelers. This is in collaboration with Delhi and Mumbai State Transport Departments.

According to FADA, the most concerning part is that these multi-brand outlets don’t offer after sales support or sometimes even proper documentation. They even charge customers a higher amount as compared to dealers. Then why do customers go for such outlets?

Well, most prominently because of immediate delivery to the customers. These outlets buy two-wheelers that are unregistered in bulk from dealers and have readily available stock.

Apart from this FADA has also reported that some of these outlets indulge in multiple tax evasions which causes losses in revenue by the brands.

Taking all of these points into consideration, the Delhi transport department has initiated taking action against such illegal dealerships. Additionally, Maharashtra and Delhi authorities have issued notices for Trade Certificate cancellation of such businesses.

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