get loan
AD

FADA Shows Concerns About Illegal Two-Wheeler Sales

FADA Shows Concerns About Illegal Two-Wheeler Sales

The Illegal Sales by Multi-Brand Showrooms resulted in revenue losses.

The Federation of Automobile Dealers Associations (FADA) in collaboration with the Delhi and Mumbai State Transport Department. FADA has expressed concern over the illegal practice of unauthorized multi-brand outlets (MBOs) selling two-wheelers.

MBOs are multi-brand showrooms that sell vehicles of different brands under one roof. The manufacturers do not authorise these showrooms to sell their products, but they still manage to operate by selling vehicles that are either stolen, fake or refurbished. FADA has raised concerns about the safety and reliability of the vehicles sold by these unauthorized MBOs. Such outlets often sell vehicles at lower prices than authorised dealers, which is a major draw for customers. However, these vehicles may not have undergone proper safety checks and may not be covered under warranty.

Action Taken on Multi-Brand Outlets

On Tuesday, the Federation of Automobile Dealers Associations (FADA) urged strict action against unauthorized multi-brand outlets. They were selling two-wheelers illegally, due to which legitimate dealerships were losing business. Automobile dealers' body FADA has approached various authorities, including the Maharashtra government, the transport commissioners of Mumbai and Delhi, and the Society of Indian Automobile Manufacturers (SIAM), to act against these outlets.

These outlets acquire unregistered vehicles in bulk and then resell them to customers at discounted rates. But at higher prices than those offered by Original Equipment Manufacturers (OEMs) through authorized dealers. They also do not give any commitment for after-sales service, FADA said in a statement. It added that this practice affects authorised dealerships and shakes customers' confidence in the brand and dealer partners.

Income Tax Evasion

Also, these outlets are involved in GST, Income Tax evasion, issuance of fake insurance policies, and delivery of vehicles without registration, high-security number plates and helmets. Thus indulging in illegal practices and causing loss to the earnings of the company dealership.

FADA has requested SIAM to resolve the issue with the concerned OEMs to amend their sales process while ensuring that no unregistered vehicles are sold to unauthorized outlets.

Effect on Dealership

This ongoing practice led to the closure of many legitimate two-wheeler dealerships as their business was unviable. "We have taken up the issue of unauthorized MBOs in the two-wheeler industry, who are not certified as bonafide dealers and sell unregistered vehicles without any trade certificate or after-sales service," FADA President Manish Raj Singhania told the media.”

He further said that — “the dealership business contributes to the country's economic development, creates employment opportunities, and thus is very important for the economy. "Such illegal practices cause huge losses to the government and society and harm the motivation of the dealers," he added.

Before you go, check out: TVS and Kidzania Open New Racing Experience Centre in Mumbai for Kids

Are you searching for a new bike? Explore bikejunction & compare your choice of bike, we will help you out with a bike loan. Select your bike according to category and other specifications on Bike Junction with just one click. Follow our news section or Social Media handles to get the latest news & updates related to the bike industry in India.

 

Follow us for Latest Bike Industry Updates
Facebook  - https://bit.ly/BikeJunction_offl_fb
Instagram -  https://bit.ly/BikeJunction_ofl_insta
Twitter - https://bit.ly/BikeJunction_ofl_twitter
Youtube    -  https://bit.ly/BikeJunctionYUT

Previous

Next

Check On Road Price

icon-left
icon-left
icon-left
AD

Top News

AD

Best Bikes

Yamaha R15 V4

Yamaha R15 V4

Displacement155 CCMileage45 KMPL
₹ 1.74 - 2.01 Lakh
Royal Enfield Classic 350

Royal Enfield Classic 350

Displacement349 CCMileage34 KMPL
₹ 1.87 - 2.24 Lakh
TVS Raider 125

TVS Raider 125

Displacement124.8 CCMileage56.7 KMPL
₹ 84,460 - 1.03 Lakh
Royal Enfield Hunter 350

Royal Enfield Hunter 350

Displacement349 CCMileage36.2 KMPL
₹ 1.38 - 1.71 Lakh
Hero Splendor Plus

Hero Splendor Plus

Displacement97.2 CCMileage70 KMPL
₹ 73,902 - 80,531
Yamaha MT 15 V2

Yamaha MT 15 V2

Displacement155 CCMileage47 KMPL
₹ 1.66 - 1.76 Lakh
View AllView All Icons

Latest Models

Just Launched
Honda XR 300L

Honda XR 300L

Displacement293.5 CCMileageN/A
₹ 1.83 Lakh
Just Launched
Honda XR300 Rally

Honda XR300 Rally

Displacement293.5 CCMileageN/A
₹ 2.08 Lakh
Just Launched
Bajaj Pulsar NS400Z

Bajaj Pulsar NS400Z

Displacement349.13 CCMileage39 KMPL
₹ 1.90 Lakh
Suzuki Hayabusa

Suzuki Hayabusa

Displacement1340 CCMileage18 KMPL
₹ 18.06 - 19.90 Lakh
Just Launched
Triumph Daytona 660

Triumph Daytona 660

Displacement660 CCMileage20 KMPL
₹ 9.88 - 10.14 Lakh
Just Launched
Honda CB500

Honda CB500

Displacement501 CCMileageN/A
₹ 2.75 - 3.02 Lakh

Upcoming Bike Models

color iconLaunching Soon
BMW R nineT Racer

BMW R nineT Racer

Displacement1170 CCMileage19.6 KMPL
₹ 18.59 LakhEstimated
color iconLaunching Soon
Benelli 752S

Benelli 752S

Displacement754 CCMileage20 KMPL
₹ 6.56 LakhEstimated
color iconLaunching Soon
Zontes U1 200

Zontes U1 200

Displacement200 CCMileage30 KMPL
₹ 1.66 LakhEstimated
color iconLaunching Soon
Benelli 180S

Benelli 180S

Displacement175.3 CCMileage45 KMPL
₹ 3.96 LakhEstimated
color iconLaunching Soon
Hero Karizma 400

Hero Karizma 400

Displacement223 CCMileage30 KMPL
₹ 1.84 LakhEstimated
View AllView All Icons
Tractor Junction IconsTruck Junction IconsItoty IconsInfra Junction IconsCar Junction IconsTractor_guru Icons

© 2026 BikeJunction. All Rights Reserved.

Floating Campaign