Arrival of D-Day Binod Agarwal, President Dear friends, At the outset, I wish you all a Merry Christmas and a Very Happy & Prosperous New Year. The long awaited D-day for FADA is drawing near. FADA's biggest biennial event, viz. Auto Summit 2006 is all set to commence on 13th January 2006. It is heartening to note that the Summit has evoked an overwhelming response with automobile dealers and others connected with automotive business from all over the country and abroad evincing a lot of interest and confirming their participation at the Summit in large numbers. The programme of the Summit has shaped up very well. The Summit is set to witness an impressive array of eminent speakers from within India and outside addressing and interacting with the participants. My profound thanks and gratitude to these distinguished Government authorities, industry leaders, professionals and representatives of our sister organisations in foreign countries, who have kindly consented to be our guest speakers at the Summit to share with us their vision and wise counsel. The Summit is taking place at a time when the scenario is looking up for automobile industry and trade. The sentiment within the industry and, as a matter of fact, within the country is upbeat. For the first time, the Indian economy has witnessed over 8% growth in the first half of a financial year, which should make us feel good and upbeat. The manufacturing sector posting a growth of around 10% is one of the significant contributors to this perky state of Indian economy. We are really looking forward to the FY 2005-06 ending up on a high note for the automobile industry with a double-digit growth. However, we cannot afford to be complacent, as the industry has, from time to time, slipped into cyclic slowdown and, at times, recession in the past. Even otherwise, while the industry is having a great run, the competition is looming large on the horizon. With a fierce competition in the market place, where a number of players are jostling for the customer space, we have to be constantly on our toes. The retail automobile trade is, in any case, under tremendous pressure to stay viable as discount war and undercutting continue to be the order of the day than an exception. As the manufacturers face the heat of competition and customer acquires more and more bargaining power largely because of the competition and choice available to him, automobile dealerships are getting increasingly squeezed in terms of their sale margins and profitability with each passing day. Therefore, the retail automobile trade, in particular, cannot enjoy the luxury of lowering its guard and have to be always geared to pass the test of time. The competitive challenges apart, there are a host of other issues confronting the retail automobile trade, be it taxes on motor vehicles, registration procedures, land use restrictions imposed by the local authorities, road infrastructure constraints, rising fuel prices or environment pollution and road safety. I am sure, the 2-day Summit will deliberate on these issues in their entirety and find ways and means of combating the current and emerging challenges. The Summit will bring forth ideas to convert these challenges into an opportunity. Therefore, my appeal once again to my fellow automobile dealers and others forming part of the automotive business chain, to come forward and register for this mega event in a big way. Your contribution in the form of sharing your experiences, inputs, suggestions and views will go a long way in making the discussion meaningful. The Summit is being organised at a grand scale thanks to the support extended by a number of vehicle manufacturers, banks, insurance & finance companies, component & equipment manufacturers and oil companies by way of their sponsorship. My gratitude to the sponsors of the Auto Summit for their wholehearted support to this mega event. I am also thankful to SIAM for associating with the Summit and pitching in with its support. FADA has come a long way since it came into being in 1964 under the stewardship of Late Mr T S Santhanam of TVS group. We cannot thank enough for the efforts put in by my predecessors and other senior members for steering FADA to such glorious heights. I take this opportunity to assure that the current Council, which took over on 31st August 2005 and elected me as the President of this august body, is sparing no effort to carry forward the good work done in the past, particularly in the last 5-6 years. We have drawn up an ambitious plan and are embarking on new initiatives. FADA Academy's pilot project under which FADA is going to start certificate/diploma courses, in association with reputed institutes, to train service supervisors, spare parts supervisors and sales executives for placement in automobile dealerships, is progressing very well. The pilot covering the cities of Mumbai and Pune, to begin with, will have the first batch of students enrolling for the courses in January 2006. The programme will be extended to other parts of the country in a phased manner. ICICI Bank has already started approaching the FADA members for the issue of a co-branded ICICI Bank - FADA Private Banking Card. I am delighted to note that quite a good number of applications for this co-branded card have been received by ICICI Bank. The bank is in the process of issuing the cards to such applicants. It is also good to note that another major initiative of FADA, i.e. 'Helpline' for Members, launched recently has attracted a large number of queries on various issues, especially on the issue of service tax, from the members all over the country. I do appreciate that the service tax, coupled with Fringe Benefit Tax introduced in the last Union Budget, is a major area of concern to automobile dealers, due largely to a number of grey areas in the provisions of law governing these taxes. FADA needs to strengthen its infrastructure, with a panel of lawyers specialising in various fields relevant to dealership operations on its rolls, in order that a meaningful help could be rendered to its members. Rest assured, we are working overtime to put in place an effective 'Helpline" service for our members. I am looking forward to the D-day and to meeting you all at the Auto Summit. With best wishes, Yours sincerely, Binod Agarwal