Auto Serve 2008 is a big draw

Chennai’s role and importance as an automotive hub was in focus once again last fortnight. Auto Serve 2008, the third edition of the Chennai exhibition on automotive care, maintenance, service, parts and garage equipments held from November 7-9, proved to be a major draw. The Confederation of Indian Industry-organised event saw over 75 companies showcase their latest products, solutions and technologies to more than 2,000 business and trade visitors.

Bosch was among the prominent exhibitors and displayed a wide range of products including the KTS 180 ECU diagnostics solution, BSB 01 wheel balancer, H-S/EFEP 161 multi-function tester, tyre changers and battery testers. The company also introduced a user-friendly, hi-tech, multi-function compact tester, which facilitates speedy and accurate testing of auto electrical products. Other leading companies were Pricol Ltd, TVS Tyres, Manatec Electronics, TVS Motor, Samsons Rubber Industries, Mann and Hummel Filter, and Gates Unitta India among others.

Among the issues discussed at the event, one that found consensus among most participants was that of the huge shortage of skilled manpower in both the organised and unorganised sectors of the automotive service industry. A CII-KPMG report released at the trade fair estimates that the industry requires manpower of about 500,000 over the next decade. To meet this requirement, the industry needs to collaborate with technical training institutes to ensure a steady supply of trained employees. At the same time, players need to improve their employee retention levels through focused recruitment and better career planning and management.

Skilled manpower key to future growth

Delivering the keynote address, Venu Srinivasan, vice-president, CII, and CMD of TVS Motor Co, urged industry to facilitate skills training to workforce both in the organised and unorganised sectors in view of technology upgradation by vehicle manufacturers. “As our consumer base is growing exponentially, there is a need for quality aftermarket service. Manufacturers need to look at the automotive aftermarket business as a revenue earner and provide consumers better quality services and thereby establish their brand,” he said.

He added: “There is a vast and growing market for the automotive sector in India which would employ more than 13 million people. Company managements should impart training on modern equipment to absorb skilled manpower.”

Srinivasan remarked that the current economic slowdown would result in project delays. He also revealed that TVS plans to roll out four new models – two motorcycles and two scooters – this fiscal.
But all is not lost, he said, lauding the fact that most of the big names in the international auto world are already here in India. “Investment in the automotive industry in India is booming, be it the Daimler-Hero plant in Chennai, Renault-Nissan plant in Chennai, Nissan and Ashok Leyland CV venture, the new Ashok Leyland plant in Uttarakhand, Tata Nano plant in Gujarat and the new Volkswagen, Fiat and GM plants in Pune. Toyota has also just announced its small car plant with an investment of almost $700 million in Bangalore and the Honda small car plant will come up anytime soon. So, therefore, there will not be anybody in the world in the top seven who will not be in India.”

Srinivasan was optimistic that the auto industry in India will bounce back. “It’s likely we will go through a couple of years of difficult times but in the long term the industry will lead growth in India. Today, we have almost 400 Tier I components companies, 20,000 Tier II companies and a few hundred thousand companies in Tier III.”

Government role

M F Farooqui, IAS, Principal Secretary - Industries Department, Government of Tamil Nadu, after releasing the KPMG study ‘Skill Gap Analysis - Employment Generation in Automotive Aftermarket’, said that the State government would play a more aggressive role in skill set availability. He further urged the industry to come forward to set up training institutes to provide skills training to the youth for various trades in the automotive sector. Farooqui stated that the Indian automobile industry is poised to grow by $ 145 billion and would generate employment to 25 million people and double its GDP share from five percent to 10 percent by 2016. Tamil Nadu produced around 30 percent of the automotive components in India and hence there is great potential to create more jobs in this sector, he added.

Delivering the theme address, R Dinesh, Chairman, Auto Serve 2008, said business in India is poised for immense growth given the burgeoning customer demand for modern technology in servicing, repair and maintenance. The entry of branded service networks by both vehicle manufacturers and other players would also enhance the growth of the automotive aftermarket business, he added.

Mukund Raghavan, vice-president (marketing), Brakes India, said, “The aftermarket service segment shows huge potential for sustaining profits despite the slowdown in global automobile sector.” Striking the same note was R Mananathan, managing director, Manatec Electronics: “The aftermarket service segment has not been prone to recession and India should invest in getting more trained skill force to handle sophisticated spare parts.”

Amol Gokhale, head of business development at ATS Elgi, said: “The slowdown in growth has pressurised manufacturers but we don’t see this as a long term trend. The biggest challenge we face is technology upgradation and we hope the government will help overcome the barrier of global divide and encourage more trade of the latest equipments.”

V M Hombali, special director, customer care, Ashok Leyland, said: “Customers today prefer genuine parts and demand for branded parts has increased significantly. Innovation and value-added services in the aftermarket service sector will be key to growth.”

K Ravi, regional director, India and SAARC (Automotive Aftermarket) Bosch Ltd, said: “At Bosch, we do not compromise on quality, innovation and customer orientation and we make sure that our products match with OE standards, thereby ensuring safety of the vehicle.” He felt that the government should have a stringent policy in place to tackle the growing menace of spurious spare parts in the country. “We need stringent laws to fight fake and counterfeit products,” he concluded.