The Federation of Automobile Dealers Associations (FADA) has announced the results of its Dealer Satisfaction Study (DSS) 2025, highlighting the state of OEM–dealer relationships across India’s auto retail sector. Conducted in collaboration with PremonAsia, the fifth edition of the study covered over 1,800 dealer principals and nearly 5,000 outlets across the country.
Key Winners Across Segments
– 4W Mass Market: JSW MG Motor India retained the top spot with an industry-leading score of 868 points.
– 2W Segment: Royal Enfield led the pack with 852 points, closely followed by Hero MotoCorp. Both brands recorded strong year-on-year gains of over 140 points each.
– Commercial Vehicles: Ashok Leyland continued its dominance with 786 points, while Tata Motors also posted notable improvements.
– 3W Segment: Returning to the study after three years, Atul Auto topped the list with a score of 924.
– 4W Luxury: Volvo Cars secured first place with 884 points.
Industry-Wide Insights
The industry’s average dealer satisfaction index improved to 781 points, up by 13 points from last year. Product quality and reliability remained the strongest drivers of satisfaction, but structural concerns continue to weigh on dealer sentiment.
Dealers highlighted challenges such as:
– Buyback or write-off policies for unsold inventory
– Sharing of training costs
– Tight margins on vehicles and spare parts
– Overall dealership viability
According to FADA President C.S. Vigneshwar, while India’s automotive sector continues to deliver on product quality, “structural issues like buyback policies, training costs, and dealership viability cannot be overlooked. Post the Government’s GST relief, addressing these challenges assumes even greater urgency as we gear up for a busy festive season.”
Segmented Takeaways
2-Wheelers: Dealers appreciated frequent product updates and reliable products, but raised concerns over margins and policy flexibility.
4-Wheelers (Mass Market): Product range and warranty support drew praise, but inventory costs and training-related expenses remain issues.
Commercial Vehicles: Product dependability and fair allocation were positives, yet long-term viability and profitability challenges persist.
Methodology
The DSS 2025 was conducted online between July and August 2025 in nine regional languages for broader participation. Responses were indexed on a 1,000-point scale using regression techniques to evaluate the importance of various factors.
Commenting on the release of the study, FADA President, Mr C S Vigneshwar said, “The Dealer Satisfaction Study (DSS) provides a true mirror to the evolving dealer–OEM relationship. This year, the study captured feedback from over 1,800 dealer principals, covering nearly 5,000 outlets across the country, and for the first time, it was conducted in nine regional languages to ensure wider and deeper participation. I sincerely thank the dealer community for their time and commitment in sharing their views.
The message from the ground is clear. While our industry continues to win on product quality and reliability, structural issues like buyback policies, training costs, and dealership viability cannot be overlooked. Dealers are strongly voicing the need for fairer margins, greater policy flexibility, and more meaningful engagement in OEM decision-making at national, regional, and zonal levels. Post the Government’s GST relief, addressing these challenges assumes even greater urgency, as we collectively gear up for what promises to be a busy festive season ahead.”
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