According to the report released by CSO, the GDP growth in Q4 at 9.3% propelled the Indian economy to a 8.4% growth in 2005-06 as compared to 7.5% in the previous fiscal and as against the earlier estimates of 8.1%. Manufacturing and services sectors continued to post strong performance during the year. The report is pleasing inasmuch as the economy is on the path to sustained high-growth trajectory as there were no signs of overheating and all macro indicators were in a reasonably good shape.

With strong economic fundamentals firmly in place and income levels rising, auto industry should expect a sustained growth in the short and medium terms. However, uncertainty in the global market with regard to prices of crude oil and petroleum products, for which India is heavily dependent on imports to meet its energy requirements, continues to cast its shadow in an otherwise bright scenario. Another irritant that has started bugging the automotive business is the rising interest rates.

Uncertainty and anxiety over petroleum prices and interest rates notwithstanding, the resurgent Indian industry with its new found confidence and self-assurance has learnt to live with such tremors and taken them in its stride. I am sure, we shall weather the storm if and when it comes and meet the challenge squarely. The only thing we need to guard against is the complacency.

While automotive business as a whole has been doing well, riding on the strong performance of Indian economy, FADA as an organisation continues to work on and strengthen its various initiatives for the benefit of automobile dealer fraternity. Following the start of training courses at Pune, FADA in association with Kohinoor Technical Institute is all set and geared to commence its training courses to train Sales Executives, Service Supervisors and Spare Parts for meeting the manpower needs of automobile dealerships, at Mumbai.

My ‘Contact Members’ programme has also been progressing very well. We have held a series of meetings at various parts of the country of late. An Open House Session and a meeting of FADA Council were held in Mumbai recently. It was good to see an overwhelming response and participation at the Open House Session. I am grateful to our guests at the Open House Session, namely, Mr V Vaidyanathan, Head Retail Group, ICICI Bank; Mr Kamesh Goyal, CEO, Bajaj Allianz General Insurance Co.; and Mr S P Thankur, Jt Commissioner (Transport), Government of Maharashtra, who kindly agreed to address and interact with the participants. I am also thankful to the Automobile Dealers Association of Maharashtra for hosting and making excellent arrangements for the meeting.

Kindly feel free to send your suggestions and inputs to enable FADA further strengthen its activities.



With best wishes,

Yours sincerely,


Binod Agarwal