The mess refuses to die out for the Indian automobile industry that has been adversely affected by sharp slowdown and escalating interest rates, along with regular revisions of fuel prices from a long time. In view of the “skewed policies of the government” that have increased the ownership cost of petrol-driven vehicles, has eventually forced the buyers to shift to diesel-engined cars lately.
During an event, ‘Manufacturing today and tomorrow’, organised by the Confederation of Indian Industry (CII), officials and representatives of various car companies operating in India, echoed on the trends persisting in the market. They said that the unfavourable strategies implemented by the government are taking a toll on the position of majority of car makers as buyers' sentiments have weakened over time.
At the conference, which was a part of the event, General Manager, Production, Maruti Suzuki, D. S. Sarma conceded that the entire economy has been bearing the brunt of stagnating trends. He also added that the present time proves to be a stringent test for the whole auto industry. “There is a 20 per cent fall in demand this year as compared to last due to high interest rates and rising fuel price. Growth rate is definitely down and is visible across the country, especially in petrol-driven vehicles. The growth is likely to be stagnant for some time,” he said.
Thus, car makers are turning every stone to get the momentum back on track and regain grounds that they lost while battling menaces.
