When multinational manufacturers opt to exit the market, as Ford has stated, India’s leading auto dealers’ organization has requested the Indian government develop laws to protect their interests.
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This month, the American firm said that it would stop producing vehicles in the nation, ending a nearly two-decade presence. It suffered a substantial blow and claimed it doesn’t see a way back to profitability, but the car dealers association said this had left them in the lurch.
In a letter to India’s industries ministry, the Federation of Automobile Dealers Association (FADA) stated that unexpected withdrawals by multinational firms “create considerable anguish.”
Rajesh Shah, head of Ford’s dealer council, stated, “We are quite sure that Ford will handle the negotiations with the utmost trust and openness.” Following the departures of General Motors and Harley-Davidson, Ford is the sixth major manufacturer to leave India since 2017.
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In its letter, FADA requested that the government develop legislation to “protect the dealers’ and customers’ interests in India.” The organization also asked for legislation to guarantee that consumers and dealers access appropriate information concerning unjust termination of dealership relationships.
