Maruti Suzuki India and MG Motor are the only two passenger vehicle makers in the mass segment to offer above 5 per cent average fixed dealer margins, which is still short of 7 per cent of selling price that automotive dealers have demanded from automakers. According to a recent survey by Federation of Automobile Dealers Associations (FADA), the average fixed dealer margin in India is much lower compared to countries like the US (8-10 per cent); China (9-11 per cent), 13-14 per cent in France, Germany, Italy, Spain, Belgium and Denmark; 12-14 per cent in South Africa and 6-8 per cent in the UK. As per the study, among the major volume payers in mass PV segment, on an average across all models Maruti Suzuki India has a fixed dealer margin of 5.07 per cent; Hyundai Motor India 4.38 per cent; Tata Motors 3. 74 per cent; Mahindra & Mahindra 3.75 per cent, Honda 3. 41 per cent, Toyota Kirloskar Motor 2.32 per cent, Kia Motor 4.43 per cent and MG Motor India 5.22 per cent. FADA had recently written to automobile industry body SIAM twice to increase fixed dealer margin to 7 per cent of the selling price. FADA… Read full this story
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