Dealer satisfaction across the Indian automotive sector showed notable gains this year, though enduring structural tensions over profitability and inventory management continue to shadow the manufacturer-dealer partnership. According to the Federation of Automobile Dealers Associations (FADA) Dealer Satisfaction Study (DSS) 2026, released on September 1, the composite industry index climbed 29 points year-on-year to reach 810 points. Conducted in partnership with PremonAsia using 2,045 valid dealer responses gathered across July and August 2026, the survey evaluated brands across approximately 60 attributes spanning six operational factors.
Within individual major categories, JSW MG Motor maintained its dominance in the four-wheeler mass-market segment with an impressive score of 865 points, whereas Royal Enfield secured the top position in the two-wheeler category with 878 points. Despite the broader upward trend in satisfaction metrics—which saw the four-wheeler mass market rise 39 points to 810 and the two-wheeler segment jump 35 points to 827—dealer associations have cautioned that headline score improvements mask deep-seated economic pressures faced by retail networks nationwide.
Four-Wheeler Mass-Market and Luxury Standouts
The four-wheeler mass-market rankings revealed a wide performance spectrum among original equipment manufacturers. JSW MG Motor led the pack at 865 points, followed closely by Mahindra & Mahindra with 853 points and Tata Motors securing third place at 836 points. Kia Motors recorded 812 points, while Toyota Kirloskar Motor and Hyundai Motor India registered 778 and 766 points respectively. At the lower end of the mass-market spectrum, Maruti Suzuki India achieved 670 points, while Renault India lagged at 597 points, highlighting a stark 268-point gap between the highest and lowest performers in the segment.
In the luxury passenger vehicle category, BMW India set the benchmark with 779 points, outperforming the segment average of 758 points. Meanwhile, in the dedicated pure-electric vehicle categories, VinFast Auto India claimed the lead in the electric passenger vehicle segment with 858 points, while Ather Energy topped the electric two-wheeler classification by recording 864 points. These specialized categories underscore how rapidly EV-specific capabilities and service economics are becoming vital competitive benchmarks for retail networks.
Two-Wheeler Segment Dynamics and Rankings
The two-wheeler industry rankings demonstrated intense competition at the summit alongside steep drop-offs further down the table. Royal Enfield led the sector at 878 points, closely tracked by Hero MotoCorp with 873 points. A significant margin separated the leaders from TVS Motor Company, which scored 689 points, followed by Suzuki Motorcycle India at 666 points and Honda Motorcycle and Scooter India (HMSI) at 631 points. Bajaj Auto occupied the final position in the ranking with 570 points, translating to a substantial 308-point difference between the top-ranked and bottom-ranked manufacturers.
In the commercial vehicle and tractor segments, performance metrics stabilized at respectable averages. Tata Motors Commercial Vehicles led the conventional CV category with 800 points, closely followed by Ashok Leyland at 795 points and VECV-Eicher Motors at 732 points. The overall commercial vehicle segment averaged 782 points, while the tractor segment registered an average score of 784 points. For commercial vehicle operators and retail partners, specialized service economics remained a critical determinant of satisfaction.
Core Dealer Grievances Over Viability and Inventory
While product reliability and range consistently scored as the highest-rated factors across the study, dealer priorities have shifted decisively toward operational sustainability and business viability. FADA president Sai Giridhar noted that the headline improvements in satisfaction indices obscure critical financial vulnerabilities. "The findings clearly underline the need for greater focus on dealer viability," he stated, pointing explicitly to sustainable margins, inventory and buyback policies, training cost-sharing, and greater clarity in OEM policies.
Data from the study showed that after-sales, sales and order planning, and business viability and policy accounted for nearly 68 percent of total dealer mind share. Alarmingly, Business Viability and Policy ranked as the lowest-scoring factor across the board. Retail partners repeatedly flagged unmanaged inventory, deadstock accumulation, heavy stock-carrying costs, parts availability, delivery turnaround times, and the lack of structured buyback policies as primary threats to long-term profitability.
Emerging Operational Pressures and Future Readiness
PremonAsia director and COO Rahul Sharma emphasized that retail priorities are expanding beyond traditional product attributes. "Profitability, inventory, dealer rights and future readiness are now central to the OEM-dealer partnership," Sharma observed. In the four-wheeler mass-market segment, dealers pressed manufacturers for greater predictability regarding capital investments required to meet rigid corporate identity standards, along with better territory discipline and streamlined registration and RTO processes.
Two-wheeler and commercial vehicle dealers similarly highlighted mounting operational friction points. Service economics, warranty reimbursement rates, labour reimbursement structures, and the financial toll of training cost-sharing emerged as widespread complaints. Furthermore, as EV adoption accelerates, retail networks expressed urgent concerns regarding the heavy capital expenditures required for charging infrastructure, specialized technical manpower development, and evolving service maintenance costs.
