mobile
Auto Components
 
CII Media Releases
 
Automotive sector creates jobs and encourages entrepreneurship - Mr P Thangamani
Nov 14, 2014

The automobile sector in Tamil Nadu has not only been generating employment but also spawning entrepreneurship, observed Mr P. Thangamani, Hon’ble Minister for Industries, Government of Tamil Nadu. “The state has been a favoured investment destination for manufacturing, more particularly, in the automotive sector. We encourage the vehicle manufacturers to purchase auto parts within the state,” he said, delivering the inaugural address, at the 6th Edition of Autoserve 2014 conference on ‘Reinventing aftermarket services through innovation’, organized by the Confederation of Indian Industry (CII).

“The Vision 2023 document of Tamil Nadu aims at making Chennai the global leader in automotive sector.   Today, Chennai has become the home of 7 auto majors with an installed capacity to produce  13 lakhs 80 thousand cars and about 3 lakhs 61 thousand commercial vehicles, said Mr Thangamani”.

The Minister said that the Autoserve 2014 event was very important towards strengthening the automotive aftermarket segment, especially with the entry of new vehicles with latest technologies.    Aftermarket support and quality of services will improve the efficiency of the vehicles and at the same time retain customers, said Mr Thangamani.

The special address by Mr C. V. Sankar, IAS, Principal Secretary to Government, Industries Department, Government of Tamil Nadu, underlined the scope for the aftermarket sector, given its enormous size.  “In the interest of consumer safety and service quality, the intermediation in the sector should be consolidated,” he said. On the menace of spurious parts worrying the automotive sector, Mr Sankar said that, in today’s context of higher use of electronics in the vehicles, standards cannot be compromised, and there has to be right emphasis on innovation to improve profitability.

Earlier, delivering the opening remarks, Mr R. Dinesh, Chairman, Auto Serve 2014 & Joint Managing Director, T V Sundram Iyengar & Sons Ltd, said that the automotive sector is of utmost importance, as the largest employer of semi-skilled labour in the country, with nearly 20-25 lakh people being employed in Tamil Nadu. “The thriving of vehicle manufacturers depends on the aftermarket sector’s health. The aftermarket trade is a wide spectrum, comprising vehicle dealers, parts distributors, service mechanics, transport operators, and even the vehicle owners,” he observed.

Emphasising that the sector merits the support of governments, both at the centre and the state level, Mr Dinesh drew attention to the funding crunch, because aftermarket is not seen as attractive by banks. “Technology upgradation of the aftermarket trade suffers owing to the funding problem.   It is necessary, therefore, the thrust should also be given in the aftermarket sector, in view of its job creation potential,” he suggested.

The focus of the conference, explained Mr Dinesh, is on stimulating the growth in aftermarket. “This will enable the sharing of best practices, the evolution of global models, and the creation of better value for constituents, because it is imperative to innovate to grow and be cost-effective,” he said.

The address by Mr Navas Meeran, Chairman – CII Southern Region & Managing Director, Eastern Condiments Pvt Ltd, spoke of the relevance of conference theme, with India being the 3rd largest auto manufacturer in the world. Sharing his perspective as an automotive consumer, he narrated the successful example from Kerala, where an automotive manufacturer has worked with an ITI to develop the curriculum for service training. Mr Meeran also spoke of the plan of CII to join hands with the Make in India initiative by starting facilitation centres in every state on a PPP mode, to enable investments.

The special address by Mr Sumit Sawhney, Country CEO and Managing Director, Renault Operations –India, drew attention to the fact that every job in the auto companies creates 4-5 jobs in the ancillary industries. “Aftermarket is a profit-generator and a job creator. Therefore, working along with the Government, the automotive industry should build the skills required,” he urged.

Speaking on customer service, Mr Sudhir Rao, Chairman & Managing Director, Skoda Auto India Pvt Ltd, called for a greater attention to aftermarket, the unsung hero of the industry. “Automotive 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 rotate jobs. Let us get the quality guy meet the customer,” he recommended.

Autoserve 2014 witnessed the participation of over 80 exhibitors showcasing a wide range of products and services in the aftermarket segment. A Product Launch Zone has been created for  Exhibitors to launch their new products during the exhibition. The exhibition also saw live technology demos on vehicle testing, service and repairs by participating companies.  The 3-day exhibition will conclude on Sunday.

14 November, 2014

Chennai.

Email to a friend   Print
Download CII App:
App Store Google Play