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Festive Season to be Decisive for the Indian Automobile Sector: Pawan Goenka

Image for Representation (Reuters)

Image for Representation (Reuters)

Mahindra and Mahindra MD Pawan Goenka hopes that the upcoming six weeks of the festive season can revive the automobile sector from its current sluggish sales trap.

Mahindra and Mahindra (M&M) Managing Director Pawan Goenka said on September 23 that there was a sign of revival in the automobile sector, and the coming festive season will be "decisive". "The automobile sector was sluggish for the last 12 months. But with the Centre's slew of measures to give a flip to the economy since July 6, we are seeing the sluggishness giving way to positivity," Goenka told reporters here. There was hope for the revival of the automobile market with the onset of Navratra (Durga Puja) following good rainfall in large parts of the country and improvement in banks' finances, he said.

"The six-week festive season starting with Navratra is going to be decisive. If the sale remains encouraging, the automobile sector will gather pace," Goenka said. Asked about the automobile industry's demand for reduction in Goods and Services Tax (GST), Goenka said, "It was easy for us to make such a demand, but for the government to keep its financial position steady, it has to strike a balance. "The government has brought down the corporate tax in a short duration, bringing delight to industry, which no one expected," he added.

"People's desire to buy new cars has not dampened. But I am a bit concerned over the heavy vehicle truck segment, which has been hit hard. This segment relies on the transportation sector which would gain pace when the economy flourishes," he added. M&M has started exporting electric two-wheelers to Europe from its plant in Madhya Pradesh's Pithampur Industrial Area near Indore, he said.