EDITORIAL Reach Out
A
uto industry had been bracing up for a relatively slower growth in the passenger cars sales last month but the slowdown in the two wheeler sales is proving to be a major disappointment. The second quarter of this ďŹ scal witnessed four percent decline in the two wheeler sales, according to SIAM. The month of September saw a 13 percent decline. SIAM President has pointed out that slowdown in growth is visible across multiple vehicle categories and that the Government needs to take note of it and provide conducive environment and policy measures to address the difďŹ cult situation. The key issue with two wheeler segment appears to be high base rate coupled with visibly lower consumption in the rural areas that is beginning to accentuate itself over the past few months. It may be a suitable time for the two wheeler manufacturers to enhance and upgrade their distribution network in addition to identifying newer market segments. This is especially true for new products as manufacturers cannot count on festive season rush to sustain sales even in the medium term. If a leading bike maker is to be believed ďŹ nancing is also
assuming a more prominent role in the two wheeler sales in the rural and semi urban areas compared to a few years back. But it’s NBFC and not banks that may be key to wider reach as the issue that is required to be addressed is to acquire wider and deeper penetration and this has been achieved by some of the prominent NBFCs like Mahindra Finance, Cholamandalam, Sriram in the process of pursuing their core business of tractor or CV ďŹ nancing. These will be players to watch out for in the coming months. Comments can be sent to am.editorial@network18publishing.com
QUOTES Sergio Marchionne, Fiat-Chrysler CEO on the production overcapacity in Europe in Reuters
I am concerned that if we don’t find a collective will to resolve this at a European level, this is going to become a permanent crisis
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Going by the assumptions, as per the current growth, we would have fallen short by 20-25 percent than what was projected in the Auto Mission Plan
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