Automobile dealers are big contributors in nation building: Gadkari

Source: The Hitavada      Date: 07 Oct 2018 09:44:19


Business Bureau,

LOOKING at the fast pace of growth of automobile industry, the country is set to be the third largest automobile market in the world. The automobile dealers are contributing towards nation building in a big way as they are one of the highest tax collectors for the Government. They are also providing direct and indirect employment to more than 50 lakh people. As the automobile industry grows, there would be huge opportunities for setting up new dealerships and providing employment to more people,” said Nitin Gadkari, Union Minister for Road Transport and Highways, Shipping and Water Resources, River Development and Ganga Rejuvenation, while speaking at the FADA Auto
Retail Conclave 2018 here in the city on Saturday.

Gadkari said that automobile sector is very important as it has a market size of Rs 4.30 lakh crore. Government is planning to invest Rs 16 lakh crore in the Sagar Mala project by constructing road, rail network connectivity and modernisation of ports. It is also planning to build automobile hub at Kandla port which will give a boost to automobile sector.

In order to provide better services to vehicle owners, the Government is planning to reduce the role of Regional Transport Offices (RTOs) by introducing the Central Motor Vehicle Rule where the dealer will be vehicle registering authority. Also, it is planning to set up ‘Auto Zone’ on new highways which will include a number of amenities and food zone for the people. The Government has already linked 70 per cent of the RTOs on the VAHAN online portal and will be linking the remaining RTOs in a phased manner. “This will reduce corruption in the registration process,” Gadkari pointed out.

Gadkari emphasised that the automobile dealers should embrace new technology as the Government was encouraging alternative fuel technologies like bio-ethanol, bio-CNG, bio-diesel and electric vehicles to reduce the outflow of foreign exchange on import of crude oil and reduce the pollution levels. Government is manufacturing ethanol from rice and wheat straw. Giving an example, he said that there are 200 electric taxis running in Nagpur and planning to add another 1,000 vehicles by December. There are 20 electric charging stations in the city. Electric vehicles run on lithium batteries which are expensive, but with mass production, the prices could be reduced.

In order to give a major boost to economic development, his Ministry is planning to construct the Delhi-Mumbai Expressway and start work from December. The project will reduce the distance by 120 kilometres and save Rs 16,000 crore. The expressway will start by connecting Delhi-Gurugram-Jaipur-Sawai Madhopur (Rajasthan)-Ratlam (MP)-Vadodara-Mumbai thereby reducing land acquisition cost from Rs 7 crore per hectare to Rs 80 lakh per hectare. The project is scheduled to be completed in three years. The expressway will cut travel time by half for cars to 12 hours from 22 hours and trucks to 22 hours compared to 44 hours, he noted. He said that road-building activity will be increased to 40 kilometers per day from the current 28 kilometers per day by next year. Gadkari said that he would provide all support to FADA in resolving their issues.
Ashish Kale, the newly elected President of Federation of Automobile Dealers Association (FADA) of India said that automobile dealers play many roles as they operate as retailers, small scale industry, provide services, financial and insurance consultants as well as partnering the Government on implementation of rules and regulations.

“FADA is representing the aspirations of more than 15,000 dealers operating more than 25,000 dealerships and directly employing 25 lakh people. To support the vision of the Prime Minister, FADA has taken a pledge to generate one lakh jobs by January 2020,” he said.

“FADA has given a promise to support the efforts of the Transport Ministry by educating one crore customers and drivers in the next one year through all our dealerships by providing safety sessions and preparing videos and brochures in regional languages,” he added.
On the occasion, FADA mobile app was launched. Also, FADA digest was unveiled at the hands of Gadkari. The event was attended by a large number of members and speakers who came from all parts of the country.
There were technical sessions and panel discussions on automobile-related topics. The vote of thanks was proposed by Vinkesh Gulati.


Auto dealers are not just service providers: CM
Devendra Fadnavis, Chief Minister of Maharashtra through a video message at FADA Auto Retail Conclave 2018 said that auto dealers are are not just service providers to their customers, but also one of the largest employment generating communities and are always involved in the development of the area that they operate in by skilling their team members and uplifting them in life.
India is moving towards being one of the top 3 auto markets in the world and Maharashtra is leading the automobile growth in the country. “I would like to congratulate Ashish Kale, my fellow Nagpurian on taking up the presidentship of such a prestigious national organisation”, he added.