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2-wheeler sales by unauthorised outlets a concern: FADA

MBOs do not provide after-sales services and are allegedly involved in tax evasion.

The Federation of Automobile Dealers Associations (FADA) has raised concerns about the rise of unauthorised multi-brand outlets (MBOs) that resell new 2-wheelers.

According to the FADA, MBOs are acquiring unregistered 2-wheelers from dealers in bulk and reselling them to customers at discounted rates, higher than the prices offered by OEMs.

FADA claims that such outlets do not provide after-sales services and are allegedly involved in tax evasion. Unauthorised outlets are said to issue fake or undervalued insurance policies and deliver vehicles without HSRP and helmets, as mandated by law.

FADA believes that authorised dealerships are losing business because of MBOs. It also affects the confidence of customers in the brand and dealer partners.

According to Manish Raj Singhania, President of FADA, the issue has been raised with concerned authorities. FADA has also reached out to the Maharashtra government and Transport Commissioners of Mumbai and Delhi to take stringent action against these MBOs.

Source: ET Auto

 

 
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