Mumbai, June 20, 2023: The Federation of Automobile Dealers Associations (FADA) today hosted its 2nd edition Finance and Insurance Summit – 2023 at Sahara Star Mumbai. The summit was organised to bring industry leaders together on a single platform to address the present opportunities and issues in the Indian automobile sector, with a focus on finance and insurance. The leadership shared their views & vision for the sector and urged industry to initiate some of the best practices for Industry for future.
The sessions were graced by Mr Ramesh Iyer, Vice Chairman and MD, Mahindra Finance, Guest of Honour Mr HO Suri, Managing Director, IFFCO Tokio along with Mr. Manish Raj Singhania, President, FADA; Mr CS Vigneshwar, Vice President FADA, Mr. Sai Giridhar, Secretary – FADA; Mr Amar Jatin Sheth, Treasurer FADA and Mr. Sachin Mahajan, State Chairperson Maharashtra led the sessions along with other FADA dignitaries and some of the industry leaders from Finance & Insurance sector.
Expressing his gratitude to the distinguished guests and appreciating the role played by the insurance and finance sectors in shaping the automobile industry and helping to revive it, Mr. Manish Raj Singhania, President of FADA, said, “Finance & Insurance (F&I) have always been the foundation of the Indian economy and the sector has significantly aided in the expansion of the Indian auto industry and the dealer network in recent years. Dealerships are a dynamic industry that frequently need financial support; the finance and insurance sectors have consistently provided us with the greatest assistance possible. The insurance and financial sectors are crucial in reviving industrial confidence on both the supply and demand sides. FADA as an association, with efficient use of technologies aim to make finance and insurance more accessible, affordable, and future ready to catalyze a resurgence in vehicle purchases and thus bolster our auto sales. We together aim to adopt practices that supports both the dealer in maintaining a comprehensive vehicle line-up and the financier in ensuring their investment is safeguarded.”
He further added, “As a responsible association, FADA stands committed to address various obstacles that the auto industry faces today such as rising interest rates, slow-moving vehicle inventory build-up at dealerships, supply chain constraints, the increased cost of funds and the ever-evolving IRDAI norms. The association also actively works towards complex factors in banks and finance companies wherein FADA urges them not to extend the inventory cycle beyond 60 days, keeping in view the precarious nature of inventory management and the necessity for quick stock turnover.”
Power Panel I: Financing the Future of Auto Retail: Smart Strategies for Growth and Profitability
The first power panel highlights how the automotive industry’s dynamics are evolving along with the changes happening in the financial market. The panel focuses on important industry issues are being addressed along with various ongoing challenges and smart strategies adopted for the growth and profitability of the future. Also, the panel describes the role of mergers and acquisitions in sharing the industry’s need by offering opportunities, cost savings and synergies further contributing to a stronger and more resilient industry.
The power panel 1 was moderated by Mr Ketan Thakkar, Group Business Editor, Autocar India & Autocar Professional along with industry stalwarts like Mr Lavesh K Sardana, Country Head-Retail Assets & Debt Management, Yes Bank, Mr Parveen Naruka, Head Sales, Kuwy, Mr Raul Rebello, Chief Operating Officer, Mahindra Finance, Mr Vikas Pandey, Sr. Executive Vice President HDFC Bank and Mr Sharvik Shah, State Chairperson, Rajasthan & Director, Rajesh Motors (Auto) Pvt Ltd
Power Panel II: Insurance Innovation for Auto Retail: Challenges, Regulations, and the Path to Comprehensive Coverage
The second power session focused on the Automotive Industry and vehicle Insurance. The session discussed how vehicle Insurance has developed into a more significant option for business owners to maintain a longer relationship with their customers. The panelist discussed the ongoing challenges, government regulations, the innovative solutions to address the problems and the path to comprehensive insurance coverage for customers. Innovative strategies such as ‘cross – selling’ and ‘Umbrella Policy’ were an important aspect of the session which can benefit the industry by maximizing the revenue, both for auto dealers and insurance companies, by diversifying their offerings further creating a more robust and sustainable business model.
The panellists for the Power Panel 2 were Mr Amit Sureka, Joint President-Motor Business, HDFC ERGO General Insurance, Mr Nitin Khanna, Business Head, ICICI Lombard General Insurance, Dr Sandeep Dadia, CEO and Principal Officer, Aditya Birla Insurance Brokers Ltd, Ms Sreedevi Nair, General Manager, New India Assurance Co. Ltd., Mr Vedanarayanan Seshadri, Managing Director & Principal Officer, Mahindra Insurance Brokers Ltd., Dr MP Shyam, Executive Member FADA & Managing Director, Advaith Motors Pvt Ltd and the session was Mr Amit Roy, Partner at PwC – Insurance & Allied Businesses
The Finance & Insurance summit was further extended to FADA Golden Dealership Awards 2023 to celebrate the legacies of dealerships that have been in existence for over fifty years along with FADA Dealership Excellence Awards, a recognition equivalent of the Oscars in the Auto Retail Industry.
Enlightening the event, a motivational session was also held wherein Mr Shekhar Suman, actor, anchor, producer shared his wisdom and experience along with the Mumbai’s iconic Dabbawalla’s grace the summit highlighting their ingenious model of process management and quality assurance, further motivating the auto industry to work on similar principles.
The objective of the summit was to bring industry leaders together at one platform to explore future trends. The summit and award ceremony witnessed the participation of over 275 auto retailers and delegates representatives from Maharashtra region.