World Auto Forum interviewed Amit Garg, Managing Director of Shiva Motors, on two questions that shape every dealer’s business: what it takes for a dealership to stay viable, and how conflicts between manufacturers and their dealers are handled.
The interview gives a dealer’s view of the economics of car retail and of the relationship between carmakers and the businesses that sell their cars.
What he said.
Network size: dealers would rather have fewer outlets, so that more sales come to them, while carmakers want a wider network as supply grows. He called it a chicken-and-egg question.
When expansion works: new outlets are fine when demand is strong and existing dealers are happy with their sales and market share.
After Covid: carmakers became more careful about adding dealers, because many dealers made losses during the pandemic. He added that demand during the semiconductor shortage had given dealers their strongest balance sheets in 20 to 30 years.
Viability first: existing dealers should be able to sell a minimum number of vehicles, so that their profitability and viability are protected.
Match territory to capability: comparing dealers to people lifting weights in a gym, he said each dealer principal has a different capacity, and capable dealers should get the chance to cover larger areas.
Watch the interview.
World Auto Forum: Amit Garg, MD – Shiva Motors on Dealer Viability and Channel Conflicts
World Auto Forum on YouTube, 14 October 2022: Amit Garg, MD - Shiva Motors on Dealer Viability and Channel Conflicts
About Shiva Group
Shiva Group is a family-owned automotive retail group with a legacy since 1928 and in automotive retail since 1972. Headquartered in Delhi NCR, the Group is an authorised sales and service partner for nine brands across two-wheelers, cars and SUVs, and commercial vehicles — Bajaj, Chetak, KTM, Triumph, Mahindra, Land Rover, MG Select, Bajaj Three-Wheelers and Mahindra Commercial — with a network across Delhi NCR and North India.
