Auto Sector Overwhelmed With Rate, Cost Woes, Says Tata Motors
Mumbai: Tata Motors has stated that it is really a challenging situation for the Indian automobile business as it is overwhelmed with soaring interest rates and consistently high input cost, with a rising rupee value adding to the woes.
Ravi Kanth, Tata Motors MD, said, “Higher interest rates are affecting the consumption. Strengthening of the rupee is affecting the exports. We cannot withdraw our capital expenditure because they are committed. The industry is affected because of the huge input costs in the last few years.”
Despite these drawbacks, increase in metal costs has had a devastating effect on the segment.
Mr. Nath said, “The industry can tackle these problems internally by launching new products and marketing aggressively.”
Tata Motors, which is also bidding for Land Rover and Jaguar, is confident about the UK automobile market.
Ratan Tata, Tata Sons Chairman said that the potentiality of auto brands in UK is high.
Kamal Nath said, “Coming out with the Rs one lakh car is both a social and business responsibility. The Rs 1 lakh small car would bring down the carbon dioxide emission.”.
Kanth also said that the launch of the car cannot be delayed or stopped up because of lack of infrastructure.
“Infrastructure woes are being taken care of by the government. Both infrastructure development and launch of the small car have to be done simultaneously,” he said.