Rajan Wadhera: '60% fall in CV segment is a reflection of the economy.'

The president of SIAM, who is also President, Automotive Sector, Mahindra & Mahindra, on inventory levels correcting, growth outlook and BS VI.

By Sumantra B Barooah calendar 05 Sep 2019 Views icon20134 Views Share - Share to Facebook Share to Twitter Share to LinkedIn Share to Whatsapp
Rajan Wadhera: '60% fall in CV segment is a reflection of the economy.'

The president of SIAM, who is also President, Automotive Sector, Mahindra & Mahindra, on inventory levels correcting, growth outlook and BS VI.

How much of a role is inventory correction playing in the industry slowdown, at this stage?
The economic performance measure is coming from the commercial vehicle sales, which is 60 percent down wholesale, and the retails are also substantially lower. That should tell you that it is not an inventory correction that is happening. In some segments, I agree that it must be inventory correction but very largely in the commercial vehicle segment, which is a mirror of the economy, and the economy is slowing down and since the automotive sector is also slowing down it is a genuine loss of sales.

According to you, the rest of the year seems difficult. How difficult could it be for the industry and within it for Mahindra & Mahindra?
Speaking for the entire industry, it will obviously be very difficult because when you are 30 percent down, profitability is a consequence of the volumes.

Has the current conditions affected BS IV to BS VI transition plans?
We cannot go on with the BS IV inventory and it is too early to transit to BS VI as the fuel is not available everywhere today. So this requires very fine balancing and that is exactly what we are grappling with.

Also read: Nitin Gadkari assures India Auto Inc of a helping hand to tide over troubled times

RELATED ARTICLES
‘Investments are coming through and the roadmap for the next five years is almost frozen’: Biju Balendran

auther Autocar Pro News Desk calendar23 Jun 2024

Biju Balendran, Managing Director of MG Motor India, spoke with Autocar Professional about MG India’s new innings under ...

‘Western India offers a complete portfolio of automotive manufacturing:’ Vinnie Mehta

auther Autocar Pro News Desk calendar23 Jun 2024

The Western region continues to play a crucial role in the automotive component sector’s growth and offers manufacturing...

‘Most of the new EV brands have come to us to sell themselves’ says Bajaj Auto's Rakesh Sharma

auther Autocar Pro News Desk calendar23 Jun 2024

Rakesh Sharma, Executive Director, Bajaj Auto, talks to Autocar Professional on his company’s focus areas for the future...