Supplier satisfaction throughout India’s vehicle business improved in 2026, though profitability, stock administration and long-term enterprise viability stay key issues. These are among the many findings of the sixth version of FADA’s Supplier Satisfaction Research (DSS) 2026, performed in affiliation with PremonAsia.
Total Business Supplier Satisfaction Index improved by 29 factors over 2025 to 810. Two-wheeler section improved by 35 factors to 827, whereas mass-market four-wheelers gained 39 factors to achieve 810.
MG Leads Automobiles, Royal Enfield Tops 2W
JSW MG Motor emerged because the highest-ranked mass-market four-wheeler producer with 865 factors, comfortably above the section common of 810. Mahindra was second with 853, adopted by Tata Motors at 836 and Kia at 812. Toyota scored 778, adopted by Hyundai at 766.
Maruti Suzuki, India’s largest carmaker by volumes, scored 670, whereas Renault was on the backside amongst producers lined within the rating with 597 factors. FADA famous that Toyota and Kia recorded the strongest year-on-year enhancements amongst ranked mass-market four-wheeler producers.
The hole between producers is much more pronounced in two-wheelers. Royal Enfield led with 878 factors, narrowly forward of Hero MotoCorp at 873. Each had been comfortably above the section common of 827. TVS Motor scored 689, Suzuki Motorbike India 666 and Honda Motorbike & Scooter India 631. Bajaj Auto was lowest among the many two-wheeler producers proven, with 570 factors.
CVs, EVs, Luxurious Manufacturers
Tata Motors topped business automobiles with 800 factors, forward of Ashok Leyland at 795. Each had been above the CV section common of 782, whereas VECV-Eicher scored 732.
Amongst pure-electric producers, Ather Power topped electrical two-wheelers with 864 factors, whereas VinFast Auto India led the pure-electric four-wheeler class with 858.
BMW India led the posh four-wheeler class with 779 factors towards a section common of 758. In tractors, Mahindra’s Swaraj Division scored 788, in comparison with the section common of 778.
Margins And Unsold Stock Stay Considerations
Regardless of the general enchancment, FADA’s findings spotlight persevering with strain on dealership economics. Enterprise Viability & Coverage stays the lowest-scoring issue within the research. After-Gross sales, Gross sales & Order Planning and Enterprise Viability & Coverage collectively account for round 68% of seller priorities.
Sellers highlighted car and spare-parts margins, buyback or write-off insurance policies for unsold stock, coaching cost-sharing, elements availability and turnaround occasions as areas requiring enchancment. Community enlargement insurance policies and long-term dealership viability are additionally issues.
For mass-market automotive sellers, deadstock and inventory carrying prices are more and more vital points. Sellers are additionally looking for larger predictability round investments required to fulfill OEM Company Identification requirements and community enlargement necessities. Two-wheeler sellers moreover highlighted EV readiness, together with infrastructure funding, manpower capabilities and viable service economics.
Merchandise Sturdy, Supplier Economics Want Consideration
One of many attention-grabbing findings from DSS 2026 is that product itself isn’t the largest drawback. Sellers proceed to charge product reliability, vary and common updates positively. As an alternative, the strain is more and more across the economics of working dealerships.
FADA President, Mr Sai Giridhar mentioned, “The DSS 2026 continues to offer an vital reflection of the evolving Supplier–OEM relationship. This 12 months’s report participation reinforces the boldness of sellers in utilizing this platform to voice their expectations and issues. Whereas product high quality, reliability and vary proceed to be robust areas, the findings clearly underline the necessity for larger give attention to seller viability, together with sustainable margins, stock and buyback insurance policies, coaching cost-sharing and larger readability in OEM insurance policies.
Sellers are additionally looking for extra structured involvement in decision-making and common engagement with OEMs at nationwide, regional and zonal ranges. Because the automotive retail enterprise evolves, notably with the transition in the direction of new applied sciences, strengthening seller economics and making certain a good, collaborative and sustainable OEM–seller relationship will probably be important for the business’s long-term progress.”
