A Roller Coaster Ride S P Shah, President Dear friends, The turbulent 2008-09 is past us. It was really a roller coater ride for all of us - the industry, the trade and the service sector. We did have a reasonably good start to the year gone by. However, things started going astray from August 2008 onwards. The financial meltdown in September 2008 and consequent recession in the global economy leading to financial crunch and uncertainty dealt a telling blow to the Indian economy including auto market. There was a whiff of revival in January, which was reinforced to some extent, by the sales figures of Feb'09. While auto market is yet to drive back to the growth path, a semblance of stability is creeping in and things are not getting worse. There are signs of downslide bottoming out, though the March sales figures are not something to rave about. Commercial vehicles still continue to reel under acute slowdown. The Quick Estimates of Index of Industrial Production (IIP) for the month of February 2009 released recently reveal a 1.2% contraction in industrial production compared to the level in Feb'08, which means that early revival of commercial vehicle segment is nowhere in sight. At the macroeconomic level, there is still considerable sluggishness in the flow of credit, which dilutes the potential benefits from all the interest cuts and liquidity infusions that have been made over the past few months. What is comforting is that oil and commodity prices are relatively benign. On the flipside, the US financial and corporate sectors are still quite fragile and, therefore, vulnerable to any new shock. Investor sentiment in India hinges on the outcome of impending general elections and the kind of new Government at the helm of affairs after May 16. All said and done, the resilience of Indian industry and people to overcome the crisis remains strong. Even if the hard economic data are yet to confirm the fact of stabilization, the mood is no more downbeat and has unmistakably changed for the better in the past two months. Although forecasts of Indian GDP growth during the year 2009 have been revised downwards by international experts and multilateral agencies, there is an anticipation of revival in domestic demand over the next few months in response to lower prices and interest rates. Hope, things will turn around for the better soon and auto market will end up on positive growth curve in this financial year. Regarding the activities of FADA since my previous column, FADA Council held its 245th meeting at New Delhi on 28th March. One of the issues that is very close to my heart is promoting clean and green environment and, thereby, saving our planet. I am happy to inform that Council decided to spearhead Green Movement through the medium of automobile dealers spread across the country. All my fellow dealers can contribute their mite in this mission undertaken by FADA. It does not require rocket technology to improve environment. What is more important is that going green reduces costs and, therefore, makes a business sense. To start with, all my fellow dealers should commit to 10%, 20% and 40% reduction in energy, water and paper consumption, respectively. We should also commit to planting trees in and around cities where our dealerships are located. One innovative idea, which Mr Kailash Gupta, our Past President has, in addition to other green measures, come up with is to give seeds and saplings to the customers who come for delivery and service of their vehicles. I am sure, we, the automobile dealers will come forward, as responsible corporate citizens, in a big way to protect and promote clean environment. Look forward to your inputs and suggestions. With best wishes, Yours sincerely, S P Shah