Ringing
in the Year 2007 on a Buoyant Note
Binod Agarwal, President
Indian auto industry has driven into the year 2007 on a
high note. What is remarkable is that all the segments of
industry have posted healthy double-digit growth. This robust
growth is no flash in pan, coming as it does, on the top
of 3 consecutive years of good showing. Continuing growth
story of Indian economy resulting in rising incomes and
aspirations, current low penetration levels, easy availability
of finance, expanding geographical spread of urban centres
and fast improving road infrastructure cannot but lead us
to conclude that the automotive industry is headed for a
sustained growth in short term and medium term. Small wonder,
the vision document, viz. Automotive Mission Plan 2016 of
the Government of India envisages doubling the contribution
of automotive industry to GDP from the current level of
5.2% to 10.4% by 2016. In this 10-year period, automotive
industry's size is expected to rise from USD 34 billion
to USD 145 billion.
As the vehicle parc increases manifold, the after-market
demand for auto components & accessories is also expected
to grow correspondingly. The road ahead is indeed rosy,
which should delight industry and trade, as also other allied
businesses, such as, auto finance and insurance.
While automotive business presents a tremendous opportunity,
the spurious parts market, which is assuming alarming proportion,
is a major challenge that needs to be tackled by a concerted
effort on the part of all stakeholders in automotive business.
The spurious, counterfeit parts not only deprive the Government
of the revenue and those dealing in genuine parts a business
opportunity, but also take a heavy social toll in terms
of higher fuel consumption, environment degradation and
road safety hazard. Therefore, all stakeholders, including
automobile dealers, have a social responsibility to mount
a sustained awareness campaign on the menace of spurious
parts.
The spurious parts market apart, there are host of challenges
resulting from the changing dynamics, which are confronting
the automotive industry and trade. Therefore, we can afford
to be complacent at our risk and peril. Gone are the days
when the industry and trade had a captive market. There
was hardly any need for the marketing effort. Today, when
the competition is the watchword, automobile dealers have
to employ a team of marketing personnel. Further, as the
industry continues to witness exponential growth, in tandem
with vehicle technology acquiring higher levels of complexity
and sophistication, virtually all the automobile dealerships
are faced with the shortage of trained technicians and service
supervisors. As I have said in this column umpteen times,
skilled manpower availability is one of the major challenges
staring at our face. FADA, as an organisation of automobile
dealers, is equally alive to this major problem and has,
therefore, embarked upon the training programme in all earnestness.
I am happy to note that two more cities, viz. Kolkata and
Kolhapur will be joining Pune and Jaipur, to launch training
courses from February to cater to the manpower needs of
automobile dealerships. FADA has already incurred a huge
cost in preparing the course material, hiring consultant
& professionals for overseeing the project and training
the faculty. Although the response has not been encouraging,
we are persisting with the programme and, even, bringing
more places within its ambit. We, in the retail automobile
trade, on our part, have to make every effort to drive home
the message that the automobile dealerships today are large
set-ups, professionally managed and offer tremendous growth
opportunities for their employees.
I shall be happy to receive your suggestions and inputs.
With best wishes,
Yours sincerely,
Binod Agarwal |
