New industrial policy: Don’t segregate sales from service stations, say auto retailers in Industrial Area

Seven out of 22 automobile dealers in the Industrial Area currently operate from industrial plots. They include Charisma Automobiles, Ultimate Autos, Prestige Honda, Tata Berkleys and PMG Autos.

[related-post]

According to Varinder Singh Saluja, president of the Automobile Association of Industrial Area, there are a few more dealers whose status of converted plot is not clear due to litigation and it is a big cause of worry for the entire industry.

He said that while bringing the service stations within the purview of industry was a good initiative in the administration’s new policy but it was not enough. Worldwide, the concept of sales, service and spare parts is an integral part of the automobile industry. Therefore, segregating sales from the service stations is not good for local automobile industry that pays more than Rs 300 crore of annual tax to the administration.

“Our request is that our industry, which gives employment to thousands of people, should not be troubled with new policy changes, and our demand is that our entire operation from sales to service station should be allowed as one industry rather than segregating it into different parts,” he said.

While the new policy’s intention is to promote clean industry, the administration must take a balanced view on those running their retailing out of industrial plots, he said.

“Where should we take our retail outlet if not at present location?” asked one dealer, who operates from an industrial plot. He did not wish to be identified.

He said that retail outlet of automobile industry is internationally guided in terms of infrastructure. Therefore, to find a place of such magnitude is not possible anywhere outside the Industrial Area. Further, it is also not economically viable to take space on rent for retailing and run service station from a different place.

“If the administration troubles us in future, we will be forced to leave the place. Ultimately, that will only affect local administration’s revenue,” he said.

Another dealer said that the new policy should strive for growth and should not be aimed at dismantling businesses that are already existing.

“There are two plots already allotted specifically for automobile purpose. If this can be done, why our industrial plots should not be allowed for retailing purpose?” he asked.

When contacted, Secretaries (Industry) Anurag Agarwal said that the policy was clear about the fact that commercial activities are not allowed on industrial plots. “Estate department is competent to take action in case of misuse of the property,” he said.