The Auto Expo 2004 was kicking off in New Delhi, coinciding with the Auto Summit 2004, the country's largest auto dealers event organized by the Federation of Automobile Dealers Associations. Over 800 auto dealers from across India were attending to discuss challenges from direct sales agents, who have been taking business away from dealers. Some dealers, like Saya Automobile, have started handling all auto financing in-house instead of through direct sales agents in order to pass the cost savings to customers. Dealers were calling for more freedom to sell their dealerships as ongoing concerns when exiting to recover investments.

1. Auto Expo 2004 Kicks Off
Today
New Delhi, Jan 14: | Published: Jan 15 2004, 00:00 IST
It’s time for automobile manufacturers to listen to some difficult questions from over
800 dealers from across the country who are participating in the third edition of the two-
day Auto Summit 2004 which kicks off on January 16.
The summit is dubbed as the country’s biggest auto dealers’ event. Organised by the
Federation of Automobile Dealers Associations (Fada), the summit coincides with Auto
Expo 2004.
Says Fada general secretary Gulshan Ahuja: “DSAs have shaken up the dealers. Their
clout is forcing dealers to proactively chase customers — and many enterprising dealers
are coming up with ways to meet the challenge.”
Delhi-based Maruti dealership Saya Automobile is one such example. It now sells almost
all its auto-financed cars through its in-house desk. Says Saya CEO Rajeshwar Dhar, “We
sell around 225-250 cars a month now and there is no involvement of DSAs. Two years
ago DSAs accounted for around 25 per cent of sales but now we’ve taken this decision to
not involve intermediaries and rather pass on the benefits to customers.”
Says Mr Kasliwal: “Dealers should be allowed to sell his dealerships as a going concern
with assets and liabilities. It’s a win-win situation for both: dealers recover part of their
investment while the manufacturer gets to discontinue the (inadequate) dealership.”