Bumper on the Road or an Unsurmountable Wall?

previous arrow
next arrow
Slider

Summarizing the country’s autocrisis, a SIAM Report said, “The automakers are in a situation where their cost is more than revenue and in short term, de-growth may intensify further.” The loss of 3.50 lakh jobs in the industry and the sharp fall in the sales of passenger cars in July 2019 by almost 35% YoY, speaks volumes about the dire state that the sector is in.

A lot of factors are responsible for this including low demand due to lack of credit, introduction of BS-VI norms, reduction in rental costs of vehicles, overproduction of inventory by the automakers, being some prominent causes among others.

“They (Automakers) roll the dice sans any logic,” said Rajiv Bajaj in an interview. “The result is a matter of luck-by-chance. We don’t waste time or money on forecasts. We simply expand capacity once we’re close to full.”

Government initiatives have proven to help historically, and a similar intervention is expected of the current administration as well in the form of a GST rate cut and other measures to spur demand.

It remains to be seen if such a cut will materialize and if the auto sector will be able to shed their weights and emerge leaner from the crisis.

Share on linkedin
LinkedIn
Share on whatsapp
WhatsApp
Share on twitter
Twitter
Share on facebook
Facebook
Share on email
Email
March 3, 2021
Monthly Snapshot – February 2021
Click here to download the report The Indian markets cheered the first paperless budget presented by the Finance Minister....
February 11, 2021
ADVANCED ENZYMES TECHNOLOGIES LIMITED
Click here to download the report First Indian Enzyme Company Advanced Enzymes Technologies Ltd (“the Company” or “AETL”) pioneered...
February 11, 2021
S CHAND & COMPANY LIMITED
Click here to download the report A Pioneer of Education Content Provider S Chand & Co. (“the Company” or...
February 10, 2021
INFO EDGE (INDIA) LIMITED
Click here to download the report India’s Profitable Pure Play Online Company Info Edge (India) Limited (“the Company” or...
February 4, 2021
Facebook: Is it Connecting or Disconnecting people?
On Facebook Day we present to you the Potential Legal and Reputational Risk. Do you think it outweighs benefits...
February 3, 2021
TATA COMMUNICATIONS
Click here to download the report Midcap Company in the Telecom Service Sector TATA Communications (“the Company” or “TATACOMM”),...
February 3, 2021
TATA MOTORS
Click here to download the report The Leading Automobile Manufacturer Tata Motors Limited (“TML” or “the Company”), part of...
January 30, 2021
Monthly Snapshot – January 2021
Click here to download the report Global markets saw massive profit booking and India was no exception especially with...
January 20, 2021
CENTURY PLYBOARDS INDIA LIMITED
Click here to download the report A Pioneer in the Wood Industry Started in 1986, Century Plyboards (India) Limited...
January 20, 2021
REDINGTON (INDIA) LIMITED
Click here to download the report REDI for the Revolution Redington (India) Limited (“Redington” or “the Company”) is a...