The primary objective of this study is to gain insights on the satisfaction levels of dealers in the finance and insurance aspects of the automotive industry.
15 Apr 2024 | 2211 Views | By Autocar Professional Bureau
The Federation of Automobile Dealers Associations (FADA), on Monday announced the initiation of a dealer satisfaction study for finance and insurance, in collaboration with PremonAsia, a Singapore-based advisory firm.
The primary objective of this study is to gain insights on the satisfaction levels of dealers in the finance and insurance ...
This is an Autocar Pro Plus article. Subscribe to continue reading.
The Federation of Automobile Dealers Associations (FADA), on Monday announced the initiation of a dealer satisfaction study for finance and insurance, in collaboration with PremonAsia, a Singapore-based advisory firm.
The primary objective of this study is to gain insights on the satisfaction levels of dealers in the finance and insurance aspects of the automotive industry.
According to Manish Raj Singhania, President, FADA, with the annual dealer satisfaction study becoming the benchmark in understanding dealer-OEM relationships, it is a natural progression in FADA's efforts to take a step further to other areas of dealerships that were not covered prominently. The relationship of dealerships with finance and insurance companies is one such area.
"The study will focus on key aspects of the relationship between dealers, finance and insurance companies and therefore, provide a platform to understand the nuances of this relationship."
"I am sure that the study will get overwhelming support from the Finance and Insurance sector, as this is the first attempt towards understanding the issues faced by auto dealerships with companies in this sector," he added.
Going forward, the body wants to venture into other areas as well, Singhania noted. He added that to take the auto industry ahead, a strong symbiotic relationship between OEMs, dealers, financing and insurance companies remains crucial. "We want hard data and will work around it," continued Singhania.
The data coming from the study remains important considering the fact that dealerships, especially the big ones operating in large cities, can take up their issues, if any, with the finance and insurance companies at the top levels. However, the situation remains relatively difficult for the dealerships operating from small cities and towns. "How do improve on it? The study provides the forum to take up such issues," he added.
FADA India represents over 15,000 automobile dealerships with over 30,000 dealership outlets, including multiple associations of automobile dealers at the regional, state and city levels, representing the entire auto retail industry. Collectively, it claims to employ 4.5 million people at dealerships and service centres.
Amar Jatin Sheth, FADA Treasurer and Director, DSS F&I, said, “In line with FADA’s stated objective of helping dealers with all aspects of running their dealership, the DSS for F&I is the first study to be launched covering the insurance and finance company relationships with the dealers. The results of the exercise are expected to help the dealers and the F&I sector work on key areas of concern in order to improve services to end customers.”
FADA officials noted that with over 2000 dealer principals likely to get covered, the study will try to understand the different aspects, starting with the ease of finance and insurance policies and the training of dealership personnel, to selling these products, disbursements and claims. It is expected that the results of the study will help F&I companies to design newer products, services and processes to help dealers and end-consumers. Close to 30 attributes from 5-6 factors analysis will be done in the study with data indexed on a 1000 point scale to determine satisfaction. The questionnaire has been hosted on the web and will be open till May.
The study will cover three broad sectors - retail, wholesale finance and insurance. Within each of the sectors, dealer principals will be requested to choose the most preferred partners and rate them on different attributes and factors related to services offered and the processes. Based on the dealer ratings, the best F&I companies will be listed, depending on the score that they get in different segments of the automotive industry – 4-Wheeler Mass, 4-Wheeler Luxury, 2 Wheeler Mass, 2 Wheeler Luxury, 3 Wheelers and Commercial Vehicles (CVs).
Based on the results of the study, the top players under each segment of the automotive industry will be awarded at the Annual FADA Insurance and Finance summit on June 14 at Hotel Sahara Star, Mumbai, the officials added.
PremonAsia Director and COO, Rahul Sharma, said, “Managing Dealer expectations not only with the Auto OEMs but with all other stakeholders in the auto Retail business, is important for a smooth business operation and to provide the best services to the end customer. It is with this intention that the 2024 FADA DSS for F&I is being launched, a first study of its kind in the Industry."
"It is expected to go a long way in not only improving Dealer and F&I companies relationship, but also provide the best products and services to end-consumers in the lowest possible time and cost," he added.