By T. Murrali
The Tamil Nadu government has expressed strong support for creating a dedicated auto dealership cluster or “Auto Row” on the outskirts of Chennai, aimed at reducing high retail real-estate costs within the city. The idea is to bring dealerships together in a shared ecosystem where resources, workshops, and even knowledge can be shared, improving efficiency without increasing competition. “I would urge FADA (The Federation of Automobile Dealers Associations) to go ahead and get a small voting of sorts done and probably get some inputs from all the clients. SIPCOT or SIDCO could pick up space for you (FADA), aligning with the state’s plan to develop special auto parks,” said, Dr. T. R. B. Rajaa, Minister for Industries, Government of Tamil Nadu.
Inaugurating the 19th edition of FADA Vyapar and the 2nd edition of Vyapar Tamil Nadu, centred around the theme: From India’s Detroit to Its Digital Destiny, Dr. Rajaa said, clustering is not just a real-estate move—it accelerates learning, collaboration and operational efficiency. With shared service centres and collective infrastructure, dealerships benefit from lower costs and faster customer turnaround.
He also highlighted the government’s strong focus on skilled talent development. Through the Tamil Nadu Skill Development Corporation, the State already partners with global OEMs like Nissan Japan, training students in EV technologies and even Japanese language skills. The government is open to designing tailor-made skilling programmes for dealerships and OEMs, customising curriculum and adding language skills as required. Over ₹2,500 crore has been invested to modernise ITIs with EV labs, smart manufacturing tools and IoT-enabled equipment, creating a pipeline of high-skill, job-ready young talent. The Minister made it clear that Tamil Nadu is moving from blue-collar to high-end technical labour, supported by some of India’s best engineering and technical institutions.
He encouraged dealerships to remain within the MSME classification, as incentives and financial benefits are more attractive in that category. If needed, the government is open to exploring policy interventions through the State Planning Commission, and is willing to form a working group with industry representatives.
On the broader industry front, he said, the government acknowledged the need for a more practical and balanced approach to the vehicle scrappage policy, recognising that while it is essential for industry growth, it must not disproportionately burden consumers.
The event also witnessed the presence of senior FADA leaders, including Mr. C. S. Vigneshwar, President, FADA, Mr. Sai Giridhar, Vice President, FADA, and Mr. Rajavel S., Chairperson, FADA Tamil Nadu, along with prominent leaders from the automotive ecosystem such as Mr. Anurag Ranjan Chowdhury, President – Business, Rosmerta Technologies Ltd. The conclave served as a platform for key stakeholders to deliberate on Tamil Nadu’s robust automobile industry and its rapid transition towards a technology-led, innovation-driven, and digitally empowered future.
Mr. Vigneshwar, said, Tamil Nadu has always been the pride of India’s auto retail, where “enterprise meets ethics and innovation meets industry.” Vyapar Tamil Nadu celebrates this journey from being the nation’s manufacturing powerhouse to a digitally empowered mobility hub leading in EV production, AI-driven services, and sustainability. Since 1964, FADA has served as the bridge between the Government, OEMs, and dealers championing data transparency, model dealer agreements, skill development, and inclusivity through initiatives like FADA Academy, WIF, and GenX. “We are also pursuing key reforms such as the implementation of the CMVR and seeking justice on the Compensation Cess issue to safeguard dealer interests,” he added.
The conclave featured six insightful knowledge sessions led by prominent speakers, covering key aspects shaping the Auto Retail industry. The sessions highlighted topics such as Central and State Government employment schemes, implementation of the amended CMV Rules 1989, insurance claims and policy matters, consumer commission interpretations of automobile cases, the growing importance of cybersecurity in a digital era, the role of AI in transforming auto retail, and the need for enhanced road safety and skill development.
New Employment Schemes
Mr. K. Pandiarajan, Chairperson & Executive Director, CIEL HR Group, spoke about new employment schemes introduced by the Central and State Governments. He shared key initiatives aimed at boosting job creation and skill development, noting that India’s Auto Retail sector already empowers over five million people across dealerships and service centres. He highlighted incentive-led programmes that support talent development and retention, and how dealerships can leverage these schemes to strengthen their workforce while optimising hiring costs.
Implementation of New CMV Rules 1989
The session provided insights into the recent amendments and implementation of the Central Motor Vehicles Rules (CMVR) 1989, outlining key regulatory updates impacting vehicle compliance, documentation, and dealership operations. The panel was moderated under the leadership of Mr. Sai Giridhar, Vice President, FADA & Director Saisha Motors Pvt ltd. along with Mr. Rahul M Shankhar, FADA legal Counsel & Managing Partner, Chamber28
Insurance Claim & Policy matters
Mr. B.R. Muralidhar, CEO & Principal Officer, Sriyah Insurance Brokers Pvt. Ltd, spoke about the key aspects of insurance claims, policy-related matters and best practices to streamline claims, enhance customer transparency, and reduce disconnect at dealership level.
How Consumer Commissions Interpret Automobile Cases
The session provided key insights into how Consumer Commissions interpret automobile-related cases, emphasising legal expectations, documentation accuracy, and fair resolution practices for dealerships and customers. The panel included Mr. Sanjay Pinto, Advocate – Madras High Court, and moderated by Mr. Dinesh Agarwal, Regional Director, FADA Tamil Nadu & Partner, R K Motors.
Road Safety
The session emphasized the growing importance of road safety, focusing on key initiatives, evolving regulatory measures, and the pivotal role of dealerships in fostering safer driving practices and enhancing consumer awareness. The discussion also explored collaborative efforts between government bodies, industry stakeholders, and dealer networks to create a culture of safety on Indian roads.
The session featured participation from industry experts, who shared valuable insights and recommendations to strengthen road safety initiatives across the automotive ecosystem.
Skill Development
The session underscored the importance of skill development in the automotive sector, with a strong focus on training initiatives, talent upskilling, and industry–academia collaboration to build a future-ready workforce. Moderated by Mr. Kasiviswanathan Panchatsharam, Managing Director, TN Apex Skill Development Centre for Automobile, the discussion brought together several industry leaders who shared valuable insights on bridging the skills gap and aligning workforce capabilities with evolving industry needs.
The Vyapar Tamil Nadu Conclave witnessed the participation of over 300 delegates representing various regions across Tamil Nadu, reflecting the state’s growing commitment to fostering employment and skill advancement in the automotive ecosystem.
