In a Forward Mode Jayendra Kachalia, President Dear friends, I have completed about one year in the office of President of this august body. It is high time that we take stock of what we achieved and what we could not, during the year. It is satisfying to note that the demand for motor vehicles continued to be buoyant during the year 2004-05, although we are witnessing somewhat quiet sales performance from the beginning of the financial year 2005-06. I am sure, the present slowdown is a temporary phenomenon and the demand will pick up momentum during the remainder of the year given that strong economic fundamentals are in place and that the number of households in middle income and upper income brackets is on a steady rise. Various studies of reputed research institutions are reassuring for the industry, the trade and other players connected with automotive business. The larger question for the retail automobile trade is whether the robust performance of industry is finding its reflection in the bottomlines of automobile dealerships. While this may be a moot point, my answer to this question is that while automobile dealerships in general have performed better in the last two years or so, the performance of industry may not be the indicator of the profitability or the financial health of automobile dealerships. Quite a few dealers continue to grapple with their viability, while others have turned in reasonably good performance, but not in tune with the performance of industry. The question of shrinking sale margins continues to niggle the automobile dealer fraternity. However, we must be clear that automobile dealers cannot depend on sale margins alone in this changed scenario where competition is the buzzword. We, the automobile dealers, must tap the allied business opportunities that are coming our way. Building and leveraging relationships with other players in automotive business has become necessary in this competitive scenario, for sustained growth. This is what FADA has been emphasising time and again at various forums. The themes of Auto Summits held from 2002 onwards and Regional Convention held this year in Mumbai also suggest that FADA has been single-mindedly pursuing this objective with a view to enhancing the viability/profitability of automobile dealers. As for FADA as an organisation representing automobile dealers, the year 2004-05 was an eventful one. Activities initiated during the previous year made a significant headway. Some of these activities were taken to their logical conclusion and a number of new initiatives embarked upon. While a detailed report of activities of FADA during the year is published elsewhere in this issue, I would like to touch upon, in brief, some of the major activities undertaken during the year. For the first time in FADA's history, a regional convention, namely, Western Region Auto Convention was organised at a grand scale on 26th Feb'05 at Mumbai. There was an overwhelming response to the Convention from the speakers, sponsors and participants comprising automobile dealers and representatives of the Government, industry, banks, finance companies, insurance companies, equipment manufacturers and others connected with the automotive business. I am grateful to Hon'ble Chief Minister of Maharashtra, Shri Vilasrao Deshmukh who kindly agreed to inaugurate and preside over the Inaugural Session as the Chief Guest. I am also grateful to other guest speakers representing various stakeholders in automotive business. I gratefully acknowledge the support extended by sponsors without which it would not have been possible for us to organise the convention at a massive scale. The Convention was a great success inasmuch as it attracted over 300 delegates representing the Government, automobile dealers and various other business interests from different parts of the country. Another major initiative taken by FADA was to start certificate/diploma courses, in association with reputed institutions, to train candidates for placement as Sales Executives, Spare Parts Supervisors and Service Supervisors in automobile dealerships and workshops. Groundwork for engagement of consultant, affiliation of institutions, preparation of curricula, training the faculty and tying up with automobile dealerships for imparting practical training to the candidates to be enrolled for the course and providing employment on their successfully completing the course, has begun. FADA will start with a pilot project covering the cities of Mumbai and Pune and subsequently extend the programme to the entire country based on the experience of the pilot. The courses are expected to start from January 2006. FADA's website was a given a new look and made more comprehensive. My grateful thanks to Mr Ashwin Sanghi, Council Member and Director, FADA Website and his team in Indiacar Pvt Ltd for this initiative of redesigning the site. B2B programme initiated for transaction of obsolete/excess inventory lying with FADA members through the website, as also the systems audit of select car dealerships in north India by a consultancy firm, are in progress. You may kindly rest assured that sincere efforts are being made to complete both the programmes, which will benefit the automobile dealer fraternity in a big way. FADA-ICICI Bank co-branded credit card for FADA members is on its way. Members are requested to send their details in the format given elsewhere in this issue immediately so that credit cards could be issued to them without further delay. FADA has grown at a brisk pace during the last few years, thanks to the painstaking efforts put in by my predecessors and support extended by Council Members/Past Presidents and members all over the country. As a result, the expectations of FADA members are also skyrocketing. To provide effective services to members, FADA is looking out for a bigger plot of land for its office. Substantial funds have been set apart to acquire plot of land in an institutional area in NCR-Delhi upon which we propose to build a spacious FADA office complex having facilities of auditorium, conference rooms and guest rooms. FADA has made rapid strides in terms of membership growth, securing recognition and undertaking various activities and services for the benefit of automobile dealer fraternity. However, we are not resting on our laurels and are conscious of the fact that a lot more needs to be done. I am sure that unfinished agenda would be taken up by the new Council who will be taking over after the AGM on 31st August 2005, in all earnestness and zeal. As in the past, FADA will be organising its 41st Annual Session in the morning on 31st August 2005 at New Delhi. I am grateful to Hon'ble Minister of Transport, Government of Delhi - Mr Haroon Yusuf who has kindly agreed to be the special guest of honour at FADA's Annual Session. I am also grateful to Mr R Seshasayee, Vice President, CII and MD, Ashok Leyland for his kindly consenting to be the chief guest on the occasion. Needless to mention, Mr Seshasayee has always come forward to support FADA and its activities. I also convey my gratitute to the team of NCAER, led by Dr R K Shukla for their agreeing to make a presentation at the Annual Session on their study regarding the increasing number of households in middle and upper income brackets and the automotive scenario in 2010. We had the misfortune of losing Mr T S Santhanam, Founder President, FADA and Mr V P Thirumurthy, Council Member, FADA who were, no doubt, the doyens of retail automobile trade in their own right. While conveying our heartfelt condolences to the bereaved families, we pray to almighty that the departed souls may rest in peace. It is saddening that recent floods in Mumbai and other parts of Maharashtra brought about by torrential rains have affected many businesses and local population due to extensive damage resulting therefrom. Automobile dealers have also suffered huge losses. I convey sympathies with those who suffered losses of life and property and assure that FADA will pitch in with its support whatever is possible, in its own humble way. Before signing off, I would like to convey my thanks and gratitude to Council for reposing its confidence in me by electing me as President of this august body. I am also grateful to the government authorities and the industry for their positive response on various issues of concern to retail automobile trade. I am thankful to Mr Vinay R Saboo, Vice President, FADA, who made himself available for various meetings and activities of FADA and was always there with me to lend his support. I also acknowledge with thanks, the wholehearted support to FADA and its activities extended by industry associations and national chambers of commerce & industry, particularly, SIAM, FICCI, ASSOCHAM & CII for working together with FADA to address various issues affecting the retail automobile trade. I owe my special thanks to past presidents and senior members, particularly, Mr Bharat M Sanghvi, Mr Vinay Nevatia, Mr Rakesh Jain, Mr Kailash Gupta, Mr Ajit Chordia and Mr Deshnidhi Kasliwal for their support, guidance and wise counsel from time to time. My profound thanks are also due to the members all over the country and office bearers of various associations of automobile dealers at the regional, State and city levels, who came forward to lend their support to FADA in organising the regional meetings and other activities. I shall be failing in my duties if I do not acknowledge the support given by FADA Secretariat in achieving the objectives of FADA. My sincere thanks to Mr Gulshan Ahuja, Secretary General and his team in FADA Secretariat for living up to the challenges that arose from time to time. My best wishes for the incoming President and his team, who, I am sure, will steer FADA and retail automobile trade to greater heights. With best wishes, Yours sincerely, Jayendra Kachalia President