Growth history of the Indian automotive industry about to collapse: Guenter Butschek, MD of Tata Motors
NEW DELHI: The growth history of the Indian automotive industry is about to collapse due to the continuous decline caused by a variety of factors, including low consumer sentiment and lack of liquidity availability, Tata Motors CEO and CEO Guenter Butschek He said Thursday.
However, speaking at the annual convention of the Society of Indian Automobile Manufacturers (SIAM), Butschek said he was cautiously optimistic about a recovery from the current situation thanks to the measures announced by the government.
Actually, let's take it in a very dramatic way and conclude, the history of Indian Automotive Growth is about to collapse, he said.
Later, 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 continuous statistics provided on wholesale in the month of July and August. I did not say it. It has collapsed, it is about to.
The low economic activity that led to a moderate demand, triggered by the liquidity crisis and the increase in axle load regulations for commercial vehicles and the uncertainty in the minds of consumers have seriously damaged the sector, he added.
In stating that automakers are taking steps to overcome the challenge by adjusting production to demand, Butschek said: The block's closure has become the word of the year.
Welcoming the recent steps taken by the government, Butschek hoped that things would change, although the road ahead remains a challenge.
I am cautiously optimistic that the worst is behind us, he said, however, he added that there were many uncertainties related to the transition of BS-VI emission standards and how it could affect the overall demand.
He said the recent series of measures announced by the finance minister Nirmala Sitharaman It will help the automotive industry.
However, he said, to get out of the current crisis and not miss the holiday season, we need clarity from the government, here and now, about the GST and scrapping policy.