Price cut on two-wheelers: Dealers seek compensation

By Our Special Correspondent

CHENNAI, MARCH 17. Following the budget-induced reduction in prices, automobile dealers have demanded two-wheeler makers to make good their loss suffered primarily on account of ``forced inventory pile-up'' at higher prices prior to the budget announcements.

An estimate by the Federation of Automobile Dealers Associations and Motor Vehicles and Allied Industries Association put the loss to the intermediaries at Rs.50-75 crores across the country.

Mr. Ajit Kumar Chordia, Managing Director of Khivraj Motors, who is also the head of the Motor Vehicles and Allied Industries Association, is convinced that if the manufacturers do not respond to their SoS, many a dealer - who is already seeing a tremendous pressure on his margin - may just disappear from the scene.

Mr. Kailash Gupta, President of the Federation of Automobile Dealers Associations, has expressed optimism that the two-wheeler makers will see merit in this demand and help in mitigating the hardships of dealers.

The tax on service stations has only compounded the dealers' plight. Mr. Gupta and Mr. Chordia fear that the service tax will encourage the roadside unauthorised repair shops where quality will be at a great discount

Awards presented

By Our Staff Reporter

CHENNAI, MARCH 17. Hailing the contribution of entrepreneurs in the automobile industry, Mr. A. P. Gandhi, President, Hyundai Motor India, said if Chennai had achieved the distinction as ``the Detroit of Asia'', the credit should go to pioneers in the industry.

Underscoring the need for customer satisfaction, he said the contribution of the automobile dealer community in the development of the industry could not be ignored.

On the occasion, the association honoured four leaders of the automobile industry, one posthumously, with the `Auto Ratna' award. The recipients of the award were Mr. T. S. Santhanam, Vice-Chairman, TV Sundaram Iyengar and Sons (received by his son Mr. Ram Santhanam), Mr. A. Krishnamoorthy, Vice-Chairman, Amalgamations Group, Mr. V. T. Velu, Chairman, VST Motors, and late L. L. Narayanan, former Chairman of the Rane Group (his son Mr. L. Ganesh, Vice-Chairman of the Rane Group received the award).

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Section  : Business
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