Dealership monopoly

ivar1951 · 4th February 2010, 18:28

I wonder if granting dealership to one dealer for one or more states is unfair to the cosnusmer. For example, Krishna Auto is the sole dealer for Chandigarh, Amritsar, Jalandhar and Ludhiana. A consumer in this area has no bargaining power at all when it comes to buying a Skoda vehicle. I think this is an unfair practice. Any views?

Amartya · 4th February 2010, 19:02

I think you are right, I guess it is similar with Skoda dealers in the Southern and Eastern parts of India as well (Mahavir Auto).

I do believe that Skoda is a lost cause though, they have not shown any kind of customer orientation and having dealer "monopolies" are again a sign of Skoda taking the customer on a ride, albeit a really uncomfortable one.

stanjohn123 · 4th February 2010, 19:18

Guess what , we thought of starting a dealership in our area down south which covers trivandrum, Tirunelvellil and Madurai but Skdoa turned us down. Right now there is only 1 dealer who is Marikar and everyone knows how they rip off people. Skoda is the least bit interested about customer's plight i think. All they want is sales to pick up without answering customers woes.

Endofdayz · 4th February 2010, 19:48

skoda.! wow.! yes these guys have very less showrooms in each city. i see there is TAFE access near hosur road bangalore before dakshin Honda. Are they new dealers or same dealer moved from st marks road to hosur road.

If they want to get things right, increase the dealership so that consumers have option. be sincere and dont pass lemons. and another thing to remember customer is king.

Only building good product is not a solution. need to support it after sales for yrs to gain confidence.

vigsom · 4th February 2010, 19:56

the same logic applies to a sole dealer in a city;no bargaining power

Skoda is synonymous with high maintenance costs,so who'll want to take up the dealership unless the intent is to rip off?

gvivek75 · 4th February 2010, 22:40

That's how it is across brands and not specific to Skoda alone. Most dealers are locally strong business houses and they want to have their hands in all pies. Case in point is Sundaram Motors and Khivraj down south.

In fact there was a time when Sundaram was the only dealer for Fiat cars in entire Tamilnadu. You just had no other option to go to.

mithun · 8th February 2010, 19:14

Also, in most of the places the dealerships goes to influential/political people. If an entrepreneur tries to start any dealerships these inglorious folks will always try to erect any barrier in one way or another !

4th February 2010, 18:28	#1
ivar1951 BHPian Join Date: Jul 2009 Location: Delhi/Chandigarh Posts: 289 Thanked: 9 Times	Dealership monopoly I wonder if granting dealership to one dealer for one or more states is unfair to the cosnusmer. For example, Krishna Auto is the sole dealer for Chandigarh, Amritsar, Jalandhar and Ludhiana. A consumer in this area has no bargaining power at all when it comes to buying a Skoda vehicle. I think this is an unfair practice. Any views?
	() Thanks

4th February 2010, 19:02	#2
Amartya Senior - BHPian Join Date: Mar 2008 Location: Evanston Posts: 1,748 Thanked: 736 Times	I think you are right, I guess it is similar with Skoda dealers in the Southern and Eastern parts of India as well (Mahavir Auto). I do believe that Skoda is a lost cause though, they have not shown any kind of customer orientation and having dealer "monopolies" are again a sign of Skoda taking the customer on a ride, albeit a really uncomfortable one.
	() Thanks

4th February 2010, 19:18	#3
stanjohn123 Senior - BHPian Join Date: Oct 2008 Location: TN 75 Posts: 1,345 Thanked: 1,798 Times View My Garage	Very True in the case of Skoda !!! Guess what , we thought of starting a dealership in our area down south which covers trivandrum, Tirunelvellil and Madurai but Skdoa turned us down. Right now there is only 1 dealer who is Marikar and everyone knows how they rip off people. Skoda is the least bit interested about customer's plight i think. All they want is sales to pick up without answering customers woes.
	() Thanks

4th February 2010, 19:48	#4
Endofdayz BHPian Join Date: Sep 2007 Location: bangy Posts: 272 Thanked: 137 Times	skoda.! wow.! yes these guys have very less showrooms in each city. i see there is TAFE access near hosur road bangalore before dakshin Honda. Are they new dealers or same dealer moved from st marks road to hosur road. If they want to get things right, increase the dealership so that consumers have option. be sincere and dont pass lemons. and another thing to remember customer is king. Only building good product is not a solution. need to support it after sales for yrs to gain confidence. Last edited by Endofdayz : 4th February 2010 at 19:52.
	() Thanks

4th February 2010, 19:56	#5
vigsom Distinguished - BHPian Join Date: Feb 2006 Location: NSEW Posts: 3,767 Thanked: 25,480 Times	the same logic applies to a sole dealer in a city;no bargaining power Skoda is synonymous with high maintenance costs,so who'll want to take up the dealership unless the intent is to rip off?
	() Thanks

4th February 2010, 22:40	#6
gvivek75 BHPian Join Date: Jul 2009 Location: Chennai Posts: 79 Thanked: 59 Times	That's how it is across brands and not specific to Skoda alone. Most dealers are locally strong business houses and they want to have their hands in all pies. Case in point is Sundaram Motors and Khivraj down south. In fact there was a time when Sundaram was the only dealer for Fiat cars in entire Tamilnadu. You just had no other option to go to.
	() Thanks

8th February 2010, 19:14	#7
mithun BANNED Join Date: Jan 2006 Location: Cochin Posts: 2,195 Thanked: 268 Times	Also, in most of the places the dealerships goes to influential/political people. If an entrepreneur tries to start any dealerships these inglorious folks will always try to erect any barrier in one way or another !
	() Thanks