Mobility paves Samsung’s silver path
The Korean giant’s early bet on mobile phones helped it hit the $10-bn mark in India, but in its 25th year it ...
Guenter Butschek (file photo) - Bijoy Ghosh
Indian automobile industry growth story is about to collapse due to ongoing slump triggered by a variety of factors, including low consumer sentiment and non-availability of liquidity, Tata Motors CEO and Managing Director Guenter Butschek said on Thursday.
Speaking at the annual convention of Society of Indian automobile Manufacturers (SIAM), Butschek, however, said he was cautiously optimistic about a recovery from the current situation on the back of measures announced by the government.
“Let’s actually take it in a very dramatic way and let’s conclude, the Indian Automotive Growth story is about to collapse,” he said. Later on clarifying his statement on the sidelines, he said, “I have seen the statistics published by the entire automotive industry in the first quarter, then the continuing statistics provided on wholesale in the month of July, August. I didn’t say it has collapsed, it’s about to”.
Read also: Higher payload norms, demand slump push CVs into slow lane
Low economic activity leading to subdued demand, triggered by the liquidity crisis and the increase of the axle load regulations for commercial vehicles and uncertainty in the minds of consumers have severely hurt the sector, he added. Stating that automobile manufacturers are taking steps to overcome the challenge by adjusting production to demand, Butschek said, “Block closure has become the word of the year“.
Welcoming the recent steps taken by the government, Butschek hoped for things to turn around, although the road ahead is still challenging. “I am cautiously optimistic that the worst is behind us,” he said, however, added that there were lot of uncertainties related to BS-VI emission norms transition and how it could impact overall demand.
He said the recent slew of measures announced by Finance Minister Nirmala Sitharaman will help the auto industry. Yet, he said, “in order to get out of the current crisis and not miss the festive season, we require clarity from the government, here and now, on GST and scrappage policy”.
The Korean giant’s early bet on mobile phones helped it hit the $10-bn mark in India, but in its 25th year it ...
Antrix should adopt a different tactic than merely fighting over jurisdiction: Experts
Invest in relationships, enterprise, behaviour, effort and learning
From different types of osmoses to new membranes, researchers have come up with ways of drawing water
Only half the Sensex stocks have bettered the index’s return in the last 10,000-point journey
High valuation and stiff competition from larger players are a dampener
Investors with a short-term perspective can buy The New India Assurance Company (NIACL) stock at current ...
₹1490 • HDFC Bank S1S2R1R2COMMENT 1475146015051520 Fresh short positions are recommended with a stiff ...
What makes the new crop of young Indian cricketers such game-changing winners? Over and above their talent, ...
Regina King’s film ‘One Night in Miami’ turns the spotlight on four young men’s often conflicting ideas of ...
Each new year millions of people around the world resolve to change their lives for the better. These ...
In these isolated times when people yearn for a slice of the familiar, amateur and professional chefs are ...
Digital is becoming dominant media, but are companies and their ad agencies transforming fast enough to make a ...
Slow Network, promoted by journalist-lyricist Neelesh Misra, pushes rural products and experiences
How marketers can use the traditional exchange of festive wishes meaningfully
For Fortune, a brand celebrating its 20th anniversary, it was a rude shock to become the butt of social media ...
Three years after its inception, compliance with GST procedures remains a headache for exporters, job workers ...
Corporate social responsibility (CSR) initiatives of companies are altering the prospects for wooden toys of ...
Aequs Aerospace to create space for large-scale manufacture of toys at Koppal
And it has every reason to smile. Covid-19 has triggered a consumer shift towards branded products as ...
Please Email the Editor