Auto Sector Continues Healthy Demand

At F A D A, let’s do our bit to re-build Kerala

Dear Dealer Colleagues,

Kerala is in the midst of an unprecedented flood havoc. The calamity has caused immeasurable misery and devastation. Many lives are lost. Hundreds of homes are totally destroyed and many more are damaged. For the first time in history, 27 dams in the State had to be opened. Never before had the State witnessed a calamity of this scale. In the fight against the flood, we have to brave the odds.

Now it is our duty to help the affected rebuild their lives. The path to recovery can be long & arduous, but you can make a difference by joining the rebuilding efforts. I request you to contribute generously to the Chief Minister's Distress Relief Fund. You can send your donation cheques to the F A D A Secretariat. Once a generous amount is collected, I will personally hand-over all the cheques to Sri Pinarayi Vijayan, Hon’ble CM of Kerala. In the meanwhile, we are also working to provide immediate relief in business terms to our Members from OEM's, Financial Institutions and Insurance Companies and have appealed to them with specific requests.

Coming to the health of our Industry, July’18 continues to be on strong footing with robust volume growth across segments except the passenger vehicle segment. While demand is relatively broad based across markets, rural India appears to be doing particularly well which is reflected in strong growth in the two wheeler and tractor segment. Most of the OEMs have reported double digit YoY growth in July’18.

Coming to the State issues, the Government of West Bengal recently came out with a notification which makes Driving License compulsory for purchasing a two wheeler. The impact of this was instant, as sales of Two Wheelers nose-dived by up to 70% in less than 45 days. MIA and F A D A have taken up this issue with both, the State Transport Ministry and SIAM. We are at it and am sure that soon there will be light at the end of the tunnel. 

While on the subject, Transport Ministry of Bihar has proposed for 4 slabs of tax for vehicle registration and has called for suggestions on the same. The current increase proposed, goes up from 8% to a range of 9-12%. If the same is gazetted, the number of vehicles getting registered in Bihar will not only slow down due to lower registration tax in neighbouring states, it will also decrease the state revenue in terms of tax collection. F A D A has taken up this matter and has written to the State Transport Ministry. As I write, a meeting is also getting scheduled with them. I hope that at the end of the discussion, the Ministry will re-think on the proposal and not make any changes.

CIIs Associations Body ASCON held its first meeting for the Financial Year. The same is being Chaired by Mr Vikram Kirloskar. F A D A has once again raised the twin issues of Lowering the GST on Used Cars and Removal of E-Way Bill for Intra State. The meeting was also attended by top GST representatives. As a follow up, we have once again sent our representation to them. 

After a vacuum of 10 years, Kolkata once again witnessed one of the largest gatherings of Auto Retailers. Vyapar Bengal on the theme ‘Rising East’ took place on 20th August’18 at The Lalit Great Eastern. As expected, the conference was an instant hit as we witnessed attendance in huge numbers making the hall go house full.

The biggest event of the year, F A D A AGM is being planned for 5th October. It will be followed by Auto Retail Conclave 2018, the next day, on 6th October in Nagpur. As an outgoing President, I once again personally request you to come and be a part of the same. I am sure that as always, with the quality speakers on board, the event will do full justice to your presence!

With best wishes.

Yours sincerely

John K Paul

Copyright © 2018 FADA India. All Rights Reserved.
Joomla! is Free Software released under the GNU General Public License.
Federation of Automobile Dealers Associations(FADA)
Website by Carazoo