A policy is needed for the organised development of the after-market for auto components and automobile servicing industry, according to R Dinesh, Joint Managing Director, TV Sundram Iyengar & Sons.

Unorganised sector

Every job in the automobile sector generates four jobs in the aftermarket, for service of vehicles. Industry estimates peg the size of the after-market at about ₹47,000 crore, with the spare parts business accounting for about ₹38,000 crore and services ₹12,000 crore, he added. But the segment is dominated by the unorganised sector and is plagued by funding and skill deficiency.

Giving it industry status and working with the Government for skill development and ensuring adequate funding will help develop this sector.

Yet to be recognised

Here, Tamil Nadu could consider including an aftermarket policy as part of its long term vision document 2023.

Addressing the guests at the inauguration function of the Auto Serve 2014, Dinesh, Chairman of the event that was organised by the Confederation of Indian Industry, said that the CII welcomes the proposed Motor Vehicles Act. But, he pointed out, there should be increased dialogue between the Government and the industry on this issue. Sumit Sawhney, Country CEO and Managing Director, Renault Operations – India, said that automobile manufacturers and after-market players need to work together to ensure skill development, quality and safety. With increased electronics and computerisation of vehicles skill development has to match the evolving technology.

Diesel deregulation, proposed Goods and Services Tax and holding excise duty for now are all positive measures, he added. Sudhir Rao, Chairman and Managing Director, Skoda Auto India, pointed out that automobile service as a segment is yet to be recognised.

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