AutoPartsAsia | AUGUST 2017 | 7Kurian Abraham
Editor-in-ChiefR
eactions to the Indian Goods and Services Tax (GST) rolled out in July 2017
have been different from various segments. However, the automotive industry
seems to be gung-ho about it as many of the manufacturers have passed on the
benefit of lower taxes to the consumers. But the benefits will be much more from
undoing the bottlenecks in the logistics sector.
With GST, the movement of goods carriers on road will be faster. For instance, the
distance covered by a truck in 11 days can now be covered in less than seven days,
mainly owing to the elimination of check-post delays. The truck operator, on an average,
can make an additional trip every month with the same fuel. These changes will cut the
logistics cost up to three percent and the manufacturers can reconfigure their supply
chain. The hub-and-spokes model that has been talked about for many years, can
become a reality with less, but larger, warehouses. These changes will benefit all the
industrial segments.
The country, with over 7,500 km coastline, can make better use of coastal shipping for
goods transport. There is immense scope for development of coastal cities, ports, and
inter-modal transport connectivity which will benefit many sectors including automotive.
Creating requisite infrastructure will help the manufacturing industry become more
efficient and competitive in the international markets.
The Cover Story of this edition is on M G Automotive, one of the largest private bus and
coach building companies in India. We have featured the company in this issue in detail
giving you insights into how the company managed to become the preferred choice
of the Swedish giant Scania to build its buses. In addition, we have some interesting
interviews with MAN Trucks India and Lucas Indian Service, and a few features on leading
automotive suppliers.
Happy Reading.Reaping GST Benefits
August 2017 | Vol. 3 | Issue No. 3Editor-in-Chief: Kurian Abraham | President: Antony Powath | Editor: Murrali Thalor |
Associate Editor: KS Nayar Executive Editor: P Raghav Varma | Assistant Editors: Prof T N Kalamani, A Saj Mathews, P Venugopal
| Correspondent: Sharad P Matade | Contributor: ShamPrasad.
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