FADA requests stakeholders to support the auto community in Kerala

After the unprecedented level 3 calamity, FADA (Federation of Automobile Dealers Association) has requested all the stakeholders of Auto Retail, may it be OEMs, Banks, Finance Companies or Insurance Companies to help rebuild Kerala.

FADA has noted that the retail sales in the state is very alarming and has drastically dropped to the zero mark with dealerships flush with higher stocks owing to the festival of Onam.

FADA has requested the OEMs to provide 30 days of special credit on spare parts despatches in August and September, as heavy rush is expected in all workshops which in turn will create huge temporary demand for spare parts which no dealer would have planned in his regular working capital. It also requests OEMs to regulate supply of vehicles to dealers who are already holding large inventories.

Requests have gone out to banks and finance companies for extension of the repayment tranche of the inventory funding accounts of its dealer members by at least four weeks without any penalty to the dealers to keep the accounts healthy and not get categorised as delayed repayment as the cash flow during this time.

FADA has requested the insurance companies to carry out faster processing of claims of auto customers as well as dealers by disbursing 70 percent of the claim amount on receipt of the claim form along with the claim estimate and the rest on receipt of complete set of documentation. FADA has also asked these companies to appoint one point contact for auto dealers, within their regional or divisional offices with whom they could co-ordinate for assisting them in expeditious settlement of claims.

This is not only aimed at helping the auto trade in getting back to normalcy but will also contribute towards speedier re-building of the state and thus its economy.