Commercial Vehicles is Flavour of the Month!

 

Dear Dealer Colleagues,

To begin with, let me give some good news. The private forecaster, Weather Risk Management Services (WRMS) has said that the June – September rainfall, which is better known as South West Monsoon, would be largely on the ‘positive side of normal’ (normal to above normal). This will have a direct impact on the Auto Sales and we should start planning our inventories keeping this news in mind!

The Auto Sector witnessed a mixed bag during the month of February 2018. While the new launches in passenger vehicles tried to keep the momentum going, fuel price rise, inflation and a spike in interest rates have played a dampener for the overall industry. Increasing urbanisation of rural India has taken the two wheeler segment into the next orbit of sales and growth. 

Due to the Government’s push for infrastructure development, streamlining of logistics and e-commerce sector post GST, restrictions on truck overloading, stimulus package for replacement buying, better monsoons over the years leading to better crop yields which in turn has raised the disposable income for the rural population, growth in commercial vehicles segment has been bestowed with a new life!

The Ministry of Heavy Industry has come out with a Draft Auto Policy. Through this, the government intends to do the following:

1.Rollout a comprehensive long term roadmap for the automotive industry

2.Implement reduction in CO2 emissions through Corporate Average Fuel Economy (CAFE) regulations

3.Introduce a composite length and emissions based criterion for vehicle taxation

4.Harmonize standards over the next 5 years

5.Implement measures to increase exports of vehicles and components

6.Improve the skill development and training eco-system

7.Conduct a detailed study to assess the logistics challenges being faced by the auto industry

To achieve these in a synchronised manner, the Ministry for Heavy Industries and Public Sector Enterprises intends to create a Nodal Body for the Automotive Industry. For taking into consideration Auto Retail Industry’s view and make F A D A, member of this Nodal Body, we have been quick on our feet and have met various bureaucrats within the Ministry and the Hon’ble Minister, Shri Anant Geete a few days back. Shri Geete was kind enough to give us a patient hearing and assured us that F A D A will be a part of this body.

Reverting to F A D A activities, I am happy to share that after organising two successful Vyapars in New Delhi and Mumbai, we are working hard to take Vyapar to other State Capitals. F A D A UP has been the front runner and we will be holding the next Vyapar in Lucknow, sometime in June. We are also in discussion with other State Chapters and I am positive of holding Vyapar in a few other locations which will get confirmed in the times to come. 

F A D A is also in talks with Yes Bank and Indian School of Management & Entrepreneurship (ISME) regarding developing of course structure and curriculum for F A D A Academy for skilling automobile dealerships, their leadership & on-ground operations alike. 

At the time of writing this article, NADA 2018 Convention is in progress and a large delegation of F A D A is attending the same in Las Vegas. I am sure that once they return, we will have lots of new learning and best practices which we can adopt.

The Financial Year is coming to an end. While all of us will be busy achieving that monthly and annual ‘target’, I wish all of you a progressive FY 2019!

With best wishes,

Yours sincerely

John K Paul

 

 

 

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