Best Reporter News ,New Delhi, April 25, 2022: The Federation of Automobile Dealers Associations (FADA) today hosted the 12th edition of FADA Vyapar Rajasthan on the theme of “Vyapar Rajasthan: Change, Adapt & Sustain Auto Retail Industry”. Hon’ble Minister of Transport & Road Safety of Rajasthan, Shri Brijendra Singh Ola, chaired the conclave along with senior government officials, executives from Indian and multinational auto manufacturers, industry stalwarts, as well as Rajasthan representatives of FADA.
Other distinguished
guests included Hon’ble Chief Secretary, Rajasthan Smt. Usha Sharma, Shri
Abhay Kumar, Additional Chief Secretary Transport, Transport Commissioner Shri
Kanhaiya Lal Swami. Shri Satish Upadhya, Special
Commissioner GST, FADA President Shri Vinkesh Gulati,
Treasurer FADA, Shri Sai Giridhar and Rajasthan State Chairperson Shri Sharvik
Shah inaugurated the conclave.
The Hon'ble Chief Minister of Rajasthan, Shri Ashok Gehlot
could not attend the event, but he sent his best wishes to Federation of Automobile
Dealers Association (FADA) and the Rajasthan Auto Dealer community. In his
response to the invitation from FADA, Shri Gehlot welcomed all the participants
and delegates to the Pink City and wished them to hold a successful event. He appreciates
the association's & Retail Automobile Industries contribution to the state,
stating, "Business fraternity in the state had suffered a lot as a
result of the pandemic, and auto dealers were no different.". Covid has
radically changed the state's economic landscape. He said that conferences like
these would help build confidence among businessmen and entrepreneurs and pave
the way for innovation in the automobile industry." Demonstrating
confidence in the association, he added, "The conference will serve as a
platform for state's automobile retailers to prepare the industry well to take
on new challenges in the post-pandemic era."
Shri Brijendra Singh Ola Hon’ble Minister of Transport & Road Safety of
Rajasthan said, “I am really excited to be part of this event, such
event brings lot of positivity and confidence among the business community in
the region. The type of gathering showcases the willingness among the
individuals to work under these adverse conditions. We appreciate the
contribution made by the retail automobile industry during covid conditions.
They have been making a remarkable contribution to the growth of the state and
we would like to support the community in the best possible way. I would like
to assure the association that the issues put across to us will be addressed on
priority and all possible efforts will be made to revive & sustain the auto
retail industry for future” Additionally, he urged the association &
dealer community to do more to generate road safety awareness, as the industry
is the last link before an individual drives their vehicle on a road.
Expressing
his gratitude to the Rajasthan chief minister, Mr Vinkesh Gulati, President
of FADA, said, “Rajasthan, the state has been an important market for the automotive
industry. As an important member of the Indian automobile industry, we are committed
to offering the best services to our customer base in the region. The resilient
dealer community has outgrown the covid adversity in past and now with the
commitment we have received from our state government leadership has further
energise the community to give its best making a stronger contribution to the
state’s economy. FADA as an association stand committed to its members to offers
them the best support to keep the business thriving and efficient.”
The conclave comprised
five acquaintance sessions, each graced by prominent speakers who discussed various
aspects of the Auto Retail Industry such as Future of Auto Retail,
Preparedness for GST Audit, gearing up for Financial Prudence, Insurance and
Scrappage Policy.
Session 1: Future of Auto Retail
The first panel discussion focused on
the Future of Auto Retail, wherein the panellists talked about
the changing scenario of the Indian Automobile Industry due to the pandemic and
changing consumer buying behaviour. The industry witnessed the emergence of virtual
showrooms and the rise of digitisation. The discussion noted the increased digitisation
which can keep the dealership business thriving and keep the workforce
efficient.
The
panel comprised industry stalwarts such
as Shri Sanjeev Kumar, Head Trucks & Buses, Ashok Leyland; Shri
Shashank Srivastava, ED, MSIL; Shri Vinkesh Gulati President FADA, and Shri Kanwaljeet
Nagpal, Regional Director, FADA Rajasthan.
Session
2: Auto Retail & GST
The
second panel focused on the changing regime in the Auto Retail and Goods
& Service Tax (GST) for the Industry. The session was attended by Mr
Satish Upadhya, Special Commissioner, GST. The discussions revolved
around the preparedness of the sector for GST audit, Efficient use of GST in
day-to-day business. In addition, key do’s
and don’ts for GST and concerns of automobile dealers were discussed. The
sector analyst acknowledged, majority of the dealers have got the hang of the
new tax system, but some are still coping with the change. The constant rolling
out of new updates by the government adds to the complexity but will be
affective in long term The industry experts elaborated on the benefits of
timely filing of GST returns, uploading accurate data, maintaining proper
documentation and so on.
The
panellists were Dr. Ravi Kumar Surpur, Commissioner - Commercial Tax,
Rajasthan; Shri Jatin Harjai, Leader- JHA Legal; Mr. Arvind Mishra, XXXXXX, and Shri Sai Giridhar,
Treasurer, FADA.
Session
3: Financial Prudence
The
third session was on Financial Prudence,
which has been one of the key concerns of the dealer community for
a long. Shri Rajan Pental, Senior Group President & Global Head, Yes
Bank made the key address, for the session. The slowdown in auto sales and
the impact of Covid are major challenges. The auto dealership is a unique
business where the margin is less and a larger portion of the earning is invested
in operational costs. Inventory
build-up, Infrastructure maintenance cost, operational cost etc went through a
much-needed cost correction. The pandemic has taught us to make some tough
decisions under adverse conditions to keep ourselves efficient and financially
prudent. The panellists discussed better
planning and investing to yield the highest returns possible and minimize the
loss percentage. Pave the way to a bright and safe future for the dealers.
They
included Shri Vivek Tripathi, Head of Commercial Banking, AU Small
Finance Bank; Shri Lavesh K. Sardana, Country Head-Retail Assets & Debt
Management, Yes Bank; Shri Bhaskar Karkera, Executive Vice President, AU Small
Finance Bank; Shri Ravi Modani, Founder & CEO, 121 Finance; and Shri
Subhash Chandra Gehlot, Regional Director FADA Rajasthan; Moderated by Shri
Sheshank Kaul, Director, Restructuring and Turnaround, EY
Session
4: Insurance
The
past two were years a roller-coaster ride for the global community. Though the insurance
sector has shown resilience, there is a need for a comprehensive dealer policy
to cover both foreseen and unforeseen risks. The panel discussed at lengths about
the need for insurance to face the risks and be prepared well in advance if any
such situation arises. The absence of insurance can prove to be a very major
mistake ending up leaving a deeper impact on the company’s financial existence.
Thus, there is a pressing need of insurance for proper coverage and financial
support against all risks that may or may not occur.
The panel included Shri Subhashish
Majumdaar, Business Head-Motor, BAGIC; Shri Suraj Parihar, Chief Regional Manager,
The Oriental Insurance Company Ltd; and Shri Jayesh Dhoot, Regional Director,
FADA Rajasthan.
Final Session:
Scrappage Policy
Clean
and Green India and Green mobility are some key projects of the Indian
government and the newly introduced scrappage policy is a historic milestone. The
elite panellist had senior executives from government bodies, research
organisations and the regional director of FADA. The panel focused on the
Scrappage Policy its efficiency, practicality and convenience. he The growing business
opportunity for in establishment of RVSF & ATS. MoRTH released the
long-awaited scrappage policy talking about the voluntary scrapping policy. The
scrappage scheme will be used as a compulsory fitness test that all the
concerned vehicles will have to undergo at an automated fitness centre. While
new vehicles will be the least polluting, older vehicles that produce
significant pollution and have low safety requirements will be eligible for
scrapping, making roads safer and the air cleaner, besides adding new business
opportunity for the community.
The members of the Final Panel Included Smt. Shruti Arora,
Director, PWC; Shri RC Yadav, Additional Commissioner, Transport, Rajasthan; and
Shri Sourabh Agarwal, Regional Director, FADA Rajasthan.
The conclave was organised following all government-regulations
& covid precautions. The conclave witnessed participation of over 350
delegates representatives from different parts of the city & town of
Rajasthan.
