‘Govt should create environment for independent workshops’
The government of India must create an environment that will facilitate independent workshops to operate under set standards without creating safety and environmental issues, said Shekar Vishwanathan, Vice Chairman, & whole time director at Toyot...
“The government will have to create an environment to allow independent workshops. but at the same time they should meet with standard and quality adopted an authorised dealers,” he said.
He was responding to a query raised on the recent Competition Commission of India (CCI)’s move to penalise carmaker for not allowing sells spare parts in the open market, saying it wanted to make the components market more broad based, user friendly and less expensive for consumers.
Pointing that this might impact the automobile dealers’ business in an existing set up Shekar said “I believe many of the current authorise dealer will become part of the independent workshops”
He further argues that once these independent workshops maintain the safety, quality and environmental issues their low cost advantage will not sustain and finally the authorised dealers will have a level playing field. “Most of these unorganised workshops use child labour and don’t adhere to the quality standard which gives them cost advantage,” Shekar explained.
Currently only 25% workshops in India are organised while 75% of them are unorganised. It is however slated to improve to 50:50, in the next few years.
“This will happen when the unorganised players start adopting the standard norms and migrate into the organised sector,” said Rakesh Batra, National leader, automotive practices at Ernst and Young.