Impact of dealer profitability on dealer satisfaction: A context of Indian automobile industry

Abstract

The purpose of this study is to explore critical factors that defines the level of satisfaction and bond of relationship between Automobiles companies and their dealerships. Indian Automobile Industry is one of the world’s fastest growing Industry and the success of Auto companies is largely depend on their robust and healthy dealer network. In this paper, we attempt to identify critical factors which can influence the relationship of Manufacturer and Dealers. The research is based on a survey carried out in Pune region of Maharashtra, where we focused on identified critical factors of mutual relationship. It was also noted that new age Auto dealerships owners are looking forward for relationships beyond just return on Investment. Using statistical data analysis, we also attempt to identify most critical factors that can influence Dealer-OEM relations. These factors were return on Investment, Future growth potential, Support from OEM team, Involvement in policy decision making and supply of quality product. The results also indicate the roles and responsibility of an OEM in building strong relationship with its dealers to improve the sales.