New Financial Year, Renewed Hopes

Dear friends,

A piece of good news is that FY 2016-17 has begun on a high note. An icing on the cake is that all segments of auto market have notched up double-digit growth. The sales numbers for the month of April 2016 come as refreshing change that we, in automobile dealer fraternity, have been longing for roughly 3 years now.

Going by the macroeconomic indicators, I am hopeful that the upturn this time around is not just flash in the pan, but is a firm indication of the turnaround of the auto market.

Two consecutive drought years, severe water shortage in certain parts of the country and continuing challenging rural environment notwithstanding, the Indian economy is gradually gaining traction. Inflation remains benign. Despite two successive hikes of late, petroleum prices are, by and large, stable and are not displaying the kind of volatility witnessed 2-3 years ago.

Core sector growth hit a 16-month high in March, marking a strong end to FY16 and pointing to a possible industrial recovery ahead. India’s core sector expanded 6.4% in March - higher than 5.7% in February, according to the data released by the Government recently. The eight sectors that make up core sectors index together have a 38% weight in the Index of Industrial Production (IIP). A paltry 0.1% rise in IIP in March 2016 has disappointed and confounded the economy watchers, though.

What is more comforting is the fact that the Meteorological Department has predicted a normal monsoon this year, which will go a long way in alleviating the rural woes that have largely been responsible for the slowdown in auto market.

Adverting to FADA’s activities since my previous column, we held a FADA Council meeting on 23rd May 2016 at Jabalpur. A grand function to mark the completion of 30 years by Mahakaushal Automobile Dealers Association (MADA) was also organized. What stood out and impressed me the most was the camaraderie and fellowship among the automobile dealers in Jabalpur. MADA, as a collective voice of automobile dealers in Mahakaushal region, has successfully taken up issues and problems confronting the members of the automobile dealer fraternity with the concerned authorities from time to time. Its success ratio is almost 100%. 

For MADA, it is not all about business issues alone. The Association has embarked upon a number of initiatives of social relevance, such as Clean and Green Jabalpur, which has earned it the accolades and praise from various quarters. Needless to mention, no business can survive and thrive, unless it has connect with and enjoys the goodwill of the society at large. As corporate citizens, we must undertake social responsibility for the upliftment and betterment of the society in which we operate. 

Another notable feature of the 30-year celebration function was the conferment of recognition on outstanding employees of various dealerships. There is no gainsaying that it is the quality of human resources, which makes or breaks a business. It is, therefore, befitting that the top performing employees were recognized on the occasion for their meritorious services. I convey my heartiest compliments to MADA for completing 30 illustrious years of service to its members. Also, my kudos to MADA for the excellent social & community welfare work being done by it.

I express my sincere thanks to Dr Kailash Gupta, President and other members of MADA for the hospitality and courtesy extended to members of FADA Council and making impeccable arrangements.

I hope, other regional associations are also carrying out similar CSR activities to enhance the image and prestige of automobile retail trade in their respective regions.

Kindly feel free to send your suggestions and inputs, if any, to make the activities of FADA more meaningful to its constituent members.

With best wishes,

Yours sincerely,

K V S Prakash Rao

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