Awaiting D-Day Jayendra Kachalia, President Dear friends, I am happy to inform that the preparations for the forthcoming major event of FADA, i.e. Western Region Auto Convention are on track. The programme for the Regional Convention has shaped up very well. A wide array of speakers including the government authorities and leaders representing industry, finance and insurance companies, and renowned international management consultancy concerns, have kindly agreed to address and interact with the participants. This goes to show the growing importance of automobile retail trade and service industry in the value chain and in the government's scheme of things. Needless to mention, viability of automobile dealers is on the top of FADA's agenda. Sale margins are shrinking with each passing day putting tremendous pressure on the viability of automobile dealers in this competitive environment. Sale margins were the mainstay of automobile dealerships in the past, say, till 1998. The scenario has since changed. There are other areas of dealership operations, which need equal attention. Simultaneously, there are other allied business opportunities which need to be tapped through partnerships with other stakeholders in the value chain, as the topic of discussion at Business Session I of the Regional Convention suggests. VAT, which is slated to be introduced from 1st April 2005, is one of the areas, where the industry and the trade have a lot of reservations. VAT is, no doubt, a step forward in the area of tax reforms. However, given the federal structure and geographical spread of India, its implementation gives rise to a lot of apprehensions. Such reservations also stem from lack of preparedness on part of trading community and the enforcing authorities alike. That is precisely the reason that one of the Business Sessions at the Regional Convention will focus on "VAT and Taxation". Therefore, the timing of Regional Convention could not have been better. I am sure, the deliberations at the Regional Convention will go a long way in benefiting all the stakeholders in general and retail automobile trade in particular. I would urge automobile dealers and others connected with the automotive business to participate in this Regional Convention in large numbers. The New Year has got off to a good start in keeping with the buoyant trends witnessed in the last two years or so. Scenario continues to be perky and enthusing to the industry and trade. We are eagerly looking forward to the presentation of the Union Budget 2005 by the Hon'ble Union Finance Minister on 28th February 2005, which, we hope, will give further impetus to the growth momentum of industry. Last year, the Finance Minister hardly had time to effect major changes in the policy framework. As a result, many areas of reforms didn't expectedly get further push. However, having regard to the time constraint, the Finance Minister did a reasonably good job. Union Budget did come out with the policy pronouncements laying emphasis on rural and infrastructure sectors, from which the industry, including the automobile industry, is going to reap benefits in the long run. Hopefully, the forthcoming Budget will come up with measures to set the second-generation reforms in motion. We, in automobile business, are particularly hoping for rationalisation of taxes on motor vehicles. I am happy to inform you all that a new look FADA Website has been commissioned from 26th January 2005, thanks to the efforts put in by Indiacar Pvt Ltd. Kindly send your comments and suggestions, if any, so that we may further improve and make it more meaningful for FADA members. I am looking forward to participation of my fellow automobile dealers and others connected with automotive business at the Regional Convention and to meeting you all there. Yours sincerely, Jayendra Kachalia