Indian auto retail is entering a decisive phase in which scale and discounts will no longer define success, according to Amar J. Sheth, Secretary, Federation of Automobile Dealers Associations (FADA), and Owner, Shaman Group.
Speaking at the ETAuto Retail Forum 2026 on Wednesday, Sheth said the real disruption ahead lies in how customers choose their mobility partners — and who they trust with long-term value.
Sheth argued that dealerships are evolving beyond being sales outlets into what he termed “mobility orchestrators.”
“The future question is not how many vehicles you sell, but how much of the customer’s mobility wallet you own, and for how many years,” he said, adding that customer lifetime mobility value must replace short-term volume as the core KPI. Customers, he noted, are no longer just buying a car but an integrated experience that covers finance, insurance, service, uptime, and upgrades.
On technology, Sheth stressed that digital tools and AI are no longer support systems but part of the workforce itself. “Technology is no longer a tool; it is becoming a workforce,” he said, clarifying that AI will not replace people but “multiply human capability.” He highlighted examples such as automated RTO processes and real-time lead responses, where minutes — not hours — can determine customer conversion. “Measure us in how many minutes we respond to a lead; that era of waiting is gone,” he said.
Sheth also pointed to a structural shift in dealership profitability, with new-vehicle sales increasingly serving as a gateway to customer acquisition rather than the primary profit engine.
“In many markets, new vehicles will be the front door, while profitability will come from certification, service, subscriptions, uptime guarantees, finance and insurance done right,” he said.
As budgets tighten and economic uncertainty grows, protecting customer uptime will become central to dealer value propositions.
Trust will be the strongest commercial differentiator in this transition. “Trust is not soft; trust is a hard commercial advantage,” Sheth emphasised, proposing that dealerships develop measurable trust indices based on transparency, service quality, ethical finance and complaint resolution.
Such trust, he added, will lower marketing costs, improve finance approvals, increase service retention, and become critical as regulatory scrutiny of data, consent, and compliance intensifies.
Sheth urged dealers to act now rather than debate the future.
“People will not remember the leaders who merely survived; they will remember those who built trust and executed transformation,” he said, underscoring that the next era of auto retail will belong to dealers who embed technology, transparency and trust at the core of their business models.
