The Federation of Automobile Dealers Associations (FADA), the apex body for automobile retail in India, announced the results of the Dealer Satisfaction Study (DSS) 2025 at the 7th Auto Retail Conclave held on September 10. The annual study is conducted in association with PremonAsia, a Singapore-based consumer insights and advisory firm.
FADA President, C. S. Vigneshwar, said, “The Dealer Satisfaction Study provides a true mirror to the evolving dealer–OEM relationship. This year, the study captured feedback from more than 1,800 dealer principals covering nearly 5,000 outlets nationwide. For the first time, it was conducted in nine regional languages to ensure wider participation. 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 all levels. Post the Government’s GST relief, addressing these challenges assumes even greater urgency as we gear up for what promises to be a busy festive season.”
PremonAsia Director and COO, Rahul Sharma, added, “While product remains the strongest driver of dealer satisfaction, after-sales and viability factors continue to dominate dealer sentiment. Close to two-thirds of satisfaction is shaped by these areas. Addressing concerns such as inventory costs, buyback policies, and training arrangements can make a meaningful difference to dealer confidence and long-term partnerships.”
In its fifth edition, DSS 2025 revealed:
- Commercial Vehicles: Ashok Leyland retained leadership with 786 points; Tata Motors CV also improved over last year.
- 4W Mass Market: JSW MG maintained its top spot with 868 points.
- 2W: Royal Enfield led with 852 points, closely followed by Hero MotoCorp – both recording significant year-on-year gains.
- 3W: Atul Auto topped the returning category with 924 points.
- 4W Luxury: Volvo Cars secured the highest score with 884 points.
Notable shifts in 2025 included Royal Enfield and Hero MotoCorp each improving by over 140 points – the largest YoY gains in the industry. Renault India rose by 90 points in the 4W Mass segment, while Tata Motors CV was the only commercial vehicle OEM to record gains this year.
The overall industry average stood at 781, up 13 points from 2024. ‘Product’ continues to receive the highest satisfaction scores across all categories, but after-sales service and business viability remain the most pressing areas for dealers. Concerns highlighted include unsold inventory buyback/write-off policies, training cost-sharing, margins on vehicles and spare parts, and dealership sustainability.
Segment-wise Insights
- CV: Dealers valued wide product range, reliability, and fairness in allocations. Challenges persist around margins, training cost sharing, and overall dealership viability.
- 4W Mass Market: Reliability, breadth of product choice, and strong warranty handling were positives. However, dealers cited inventory costs, training arrangements, and profitability as major challenges.
- 2W: Dealers appreciated product range, frequent updates, effective training, and fair warranty handling. Key concerns include inventory buyback, training cost sharing, and multi-brand outlet policies.
Despite gains in the 2W segment, satisfaction levels declined slightly in the 4W Mass Market and CV segments, underscoring the need for OEMs to strike a balance between brand standards and dealer profitability.
