As India aims to position itself as the world's leading auto manufacturing hub, the ambition will require a collaborative effort, uniting the country's strengths with global brands, Nitin Gadkari, Union Minister – MoRTH, Government of India, has said.
Addressing the fifth FADA Auto Retail Conclave, he added that the automobile sector holds a pivotal role, contributing a substantial 40% to India's manufacturing GDP.
While urging the dealerships to look at setting up scrapping centres, fitness centres, and driving training centres, he said that initiatives in recycling materials such as aluminium, copper, steel, rubber, and plastic components are poised to reduce automobile component prices by a significant margin of 25-30%.
Manish Raj Singhania, President, FADA, said that the recent 59th Annual General Meeting allowed the association to evaluate its growth trajectory.
While urging the government to reduce the GST rate from 28% to 18% for entry-level two-wheelers in the 100-125 cc range, he added that the two-wheeler industry is an important part of the mobility ecosystem.
“As stewards of road safety, we've launched our 'Buckle Up Campaign' to remind our customers of the crucial importance of safety on the roads,” he added.
Auto retail encompasses more than the sale of vehicles; it encompasses road safety, employment, and sustainability, he said.
'The Indian Auto Retail isn't merely recovering. In the last fiscal year, we witnessed a resurgence, achieving a record-breaking 21% growth rate with 22.1 million vehicles leaving our showrooms. Two-wheelers surged by 19%, three-wheelers by a staggering 84%, passenger vehicles by 23%, and commercial vehicles by an incredible 33%. Despite this remarkable progress, the 2-wheeler segment remains 20% below pre-COVID levels. In the last five months, auto sales have grown by 7%,' Singhania expressed.
He continued that the time has arrived for all three bodies to adopt a more collaborative approach to innovate and accelerate toward a more resilient future.
Themed 'Collaborate-Innovate-Accelerate”, the conclave also saw an MoU signing between FADA and Lawyered, empowering customers with the necessary resources and knowledge to make well-informed decisions regarding challans and vehicle seizures.
FADA also signed a MoU with Onsurity, signifying a crucial step in their collaborative efforts to bring innovative solutions to the automotive sector and its stakeholders.