Auto Industry SHAKE-UP! Is Trust the Key to Survival?!

The Indian Auto retail landscape is on the cusp of a significant transformation, and it's not about dealerships getting bigger or chasing ever-elusive economies of scale. According to Amar Sheth, Secretary of the Federation of Automobile Dealers Associations (FADA), the real game changer will be building trust and securing customer lifetime value. He made these comments at the recent ETAuto Retail Forum 2026, a forward-looking event focused on the future of the industry.

Auto Industry SHAKE-UP! Is Trust the Key to Surviv...

Sheth's message was pretty clear: ditch the discount-driven mentality. For too long, the focus has been on slashing prices to win a sale, often at the expense of long-term profitability and customer satisfaction. Instead, he argues dealers need to position themselves as trusted mobility partners, capturing a larger slice of the customer's total transportation spending over the years.

But how do you achieve this? Sheth emphasized a three-pronged approach. First, building trust is paramount. In an era of online reviews and instant feedback, transparency and ethical practices are no longer optional; they're essential. Second, leveraging technology to enhance the customer experience. This could involve everything from online service scheduling to personalized vehicle maintenance reminders. I've seen this work wonders; a local shop that sends me timely notifications based on my car's mileage always gets my business.

The third pillar of Sheth's strategy centers around fostering long-term service relationships. Think beyond just selling a car. Dealers need to become the go-to place for maintenance, repairs, and even future vehicle upgrades. This requires a shift in mindset from simply being a car seller to being a mobility solutions provider. It also means investing in skilled technicians and providing exceptional service that keeps customers coming back.

This shift is arguably a necessity, not just a trend. The automotive industry is undergoing massive disruption with the rise of electric vehicles, shared mobility services, and autonomous driving technologies. Dealerships that cling to the old model risk being left behind. By focusing on building trust and cultivating long-term relationships, dealers can not only survive but thrive in this rapidly evolving environment. It's about providing value that extends far beyond the initial purchase, ultimately ensuring a loyal customer base for years to come.