Looking Back at the Year Gone By


Dear friends,

By the time, this issue of FADA Journal reaches you, I would have completed two years in the office of FADA President. It is high time, we take a stock of how the last year tuned out to be.

When I started the second innings as the President in September last year, the green shoots of recovery of the Indian auto market were visible. However, apprehensions were still there in the backdrop of two consecutive years of drought. It is comforting that the vehicle sales have been moving up the growth curve month after month since the advent of the year 2016 and that the outlook is promising. The slowdown of M&HCV segment in the recent months is a cause of worry, though.

Another piece of good news is that the Government is moving very fast to clear the decks for the GST to become a reality from April 2017. While the full import of GST is yet to be understood, GST, if implemented, will unify the fragmented market into a single common market, removing many hassles and complexities experienced in the present tax regime. To prepare automobile dealers for implementation of GST without hiccups, FADA is planning to organise seminars on GST. To begin with, a presentation on GST, as relevant to the automobile dealers, will be made by Ernst & Young at FADA’s next Annual Session scheduled for 24th September 2016 at Kochi. We are also proposing to engage an expert agency to study the implications of GST for automobile dealers and to submit a report. The issues of concern arising out of the report will be taken up with the concerned authorities for redressal.

It gives me sense of satisfaction that FADA continued to work with zeal & zest to promote the cause of automobile dealers and auto retail trade.

Among its various activities, FADA’s biennial event - Auto Summit 2016 was organized in style during the year. We could not have had a better theme of the Summit than ‘Digital Dealer’ in the context of growing use and adoption of digital platform for business operations in this IT age. The Summit was a stupendous success - be it the stature of speakers, the topics & quality of deliberations or the scale & grandeur. The Summit came on the heels of a grand function organized last year to mark the Golden Jubilee of FADA.

FADA continued to represent vehemently the interest of automobile dealers before the Central & State Government authorities and OEMs. Tax Collection at Source (TCS) was one of the major issues that was successfully taken up and resolved by FADA through representations and personal meetings with the Finance Ministry officials. While the TCS continues on the statute book, the clarifications issued by the Finance Ministry have removed grey areas and set at rest many of the apprehensions of automobile dealers.

I am happy that I, along with other senior members, was able to meet and interact with our fellow dealers at various places in the country to understand and identify the problems facing automobile dealers at the local and State levels. Massive turnout at two regional meetings at Vijayawada and Jabalpur, in particular, gave us a lot of useful inputs and suggestions.

My sincere thanks to my colleagues in the Council and other members spread across the country for their whole-hearted support & guidance. I am also thankful to the Government authorities and OEMs for appreciating our concerns and extending their helping hand.

I wish my successor All the Best and hope, the new team will steer FADA and auto retail trade to greater heights.

Yours sincerely,

K V S Prakash Rao

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