Automobile dealers in India have appealed for support from their clients and all those that they deal with for support. According to a statement issued by the Federation of Automobile Dealers Associations (FADA), the automobile dealer fraternity supports the government’s move to demonetise Rs.500 and Rs.1,000 currency notes. It however appeals to the government to take steps to reduce the service charge levied by the banks on credit card transactions, which will go a long way in minimising cash transactions. Stating that retails are more alarming than the dealers could anticipate, the statement mentions that the entire auto retail trade has come under severe stress. Dealerships are saddled with stocks and near zero retail. The situation is unlikely to see much improvement till the current financial year end, the statement read. John Paul, President, FADA, said, “Vehicle manufacturers should help dealers to reduce inventory, and to make available enhanced credits from banks. We have taken up the issue with all banks and financial institutions through FADA, and hope that they will support us.”

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