Auto firms seek after market service policy
State policy will give industry status and help generate funding options
By : DC Correspondent
Update: 2014-11-15 06:27 GMT
Chennai: Auto component makers in the state are mooting an after market service policy to boost their sagging fortunes. The industry is hoping to consolidate the sector, which is predominantly dominated by unorganised players, through a state policy that can give it an industry status and help generate funding options.“Technology upgradation of the after market trade suffers owing to the funding problem. With the Tamil Nadu government already taking a lead with an auto and auto ancillary policy, we are mooting an after sales and service industry to complete the spectrum,” said Mr R. Dinesh, chairman of Auto Serve 2014 and joint managing director, TVS and Sons Ltd.
Earmarking a separate city zones for service and spare parts sales, outlining industry status for easy bank loans and drawing up skill development initiatives along with ITIs to ensure adequate manpower supply, will be the key highlights of the proposal, he added.The after market trade is a wide spectrum, comprising vehicle dealers, parts distributors, service mechanics, transport operators and vehicle owners. Its market size is estimated to be around Rs47,000-Rs49,000 crore in India with service and spares accounting for Rs12,000 crore and Rs37,000 crore respectively.
Earlier, speaking at the inaugural session of the sixth edition of CII Autoserve 2014, industries minister P. Thangamani said, “The automobile sector in TN has not only been generating employment, but also spawning entrepreneurship. We encourage the vehicle manufacturers to purchase auto parts within the state.” After market support and quality of services will improve the efficiency of the vehicles and at the same time retain customers, he added.
Calling the after market service industry an unsung hero of the auto sector, Mr Sudhir Rao, CMD, Skoda Auto India Private Ltd, said, “Auto service is not perceived to be glamorous. Its working conditions are tough and it entails long hours. Let us think of ‘sales, service, marketing’ as the title for personnel in our companies and also for job rotation.”