Dealer satisfaction across India’s automobile industry improved in 2026, although profitability, inventory management and long-term business viability remain key concerns. These are among the findings of the sixth edition of FADA’s Dealer Satisfaction Study (DSS) 2026, conducted in association with PremonAsia.
Overall Industry Dealer Satisfaction Index improved by 29 points over 2025 to 810. Two-wheeler segment improved by 35 points to 827, while mass-market four-wheelers gained 39 points to reach 810.
MG Leads Cars, Royal Enfield Tops 2W
JSW MG Motor emerged as the highest-ranked mass-market four-wheeler manufacturer with 865 points, comfortably above the segment average of 810. Mahindra was second with 853, followed by Tata Motors at 836 and Kia at 812. Toyota scored 778, followed by Hyundai at 766.
Maruti Suzuki, India’s largest carmaker by volumes, scored 670, while Renault was at the bottom among manufacturers covered in the ranking with 597 points. FADA noted that Toyota and Kia recorded the strongest year-on-year improvements among ranked mass-market four-wheeler manufacturers.
The gap between manufacturers is even more pronounced in two-wheelers. Royal Enfield led with 878 points, narrowly ahead of Hero MotoCorp at 873. Both were comfortably above the segment average of 827. TVS Motor scored 689, Suzuki Motorcycle India 666 and Honda Motorcycle & Scooter India 631. Bajaj Auto was lowest among the two-wheeler manufacturers shown, with 570 points.
CVs, EVs, Luxury Brands
Tata Motors topped commercial vehicles with 800 points, ahead of Ashok Leyland at 795. Both were above the CV segment average of 782, while VECV-Eicher scored 732.
Among pure-electric manufacturers, Ather Energy topped electric two-wheelers with 864 points, while VinFast Auto India led the pure-electric four-wheeler category with 858.
BMW India led the luxury four-wheeler category with 779 points against a segment average of 758. In tractors, Mahindra’s Swaraj Division scored 788, compared to the segment average of 778.
Margins And Unsold Inventory Remain Concerns
Despite the overall improvement, FADA’s findings highlight continuing pressure on dealership economics. Business Viability & Policy remains the lowest-scoring factor in the study. After-Sales, Sales & Order Planning and Business Viability & Policy together account for around 68% of dealer priorities.
Dealers highlighted vehicle and spare-parts margins, buyback or write-off policies for unsold inventory, training cost-sharing, parts availability and turnaround times as areas requiring improvement. Network expansion policies and long-term dealership viability are also concerns.
For mass-market car dealers, deadstock and stock carrying costs are increasingly important issues. Dealers are also seeking greater predictability around investments required to meet OEM Corporate Identity standards and network expansion requirements. Two-wheeler dealers additionally highlighted EV readiness, including infrastructure investment, manpower capabilities and viable service economics.
Products Strong, Dealer Economics Need Attention
One of the interesting findings from DSS 2026 is that product itself isn’t the biggest problem. Dealers continue to rate product reliability, range and regular updates positively. Instead, the pressure is increasingly around the economics of running dealerships.
FADA President, Mr Sai Giridhar said, “The DSS 2026 continues to provide an important reflection of the evolving Dealer–OEM relationship. This year’s record participation reinforces the confidence of dealers in using this platform to voice their expectations and concerns. While product quality, reliability and range continue to be strong areas, the findings clearly underline the need for greater focus on dealer viability, including sustainable margins, inventory and buyback policies, training cost-sharing and greater clarity in OEM policies.
Dealers are also seeking more structured involvement in decision-making and regular engagement with OEMs at national, regional and zonal levels. As the automotive retail business evolves, particularly with the transition towards new technologies, strengthening dealer economics and ensuring a fair, collaborative and sustainable OEM–dealer relationship will be critical for the industry’s long-term growth.”
