MRF States That Current Year Is Disturbed For Automobile Industry
Published On 26-Jul-2019 00:07:45
One of the leading tyre manufacturers, MRF have stated that the automobile industry is disturbed for the current year. According to a prime official of the company, it is due to the shift from BS-IV to BS-VI fuel norms. In the company's annual report, managing director and MRF Ltd chairman, K M Mammen said: "The uncertainty is further compounded by lower consumer sentiments resulting in inventory build-up, and all original equipment manufacturers aligning production in line with demand." He further added that the next six months would witness a volatile auto sector on the statement of the transition to BS-VI emission norms and the tyre industry would have to adjust its production with this condition.
The nation remains to be one of the most preferred markets in the world in terms of growth and investment. Tyre manufacturers have to be factored in due to the short term break in the continuity caused in the automobile industry. In addition to that Mammen stated that the current union budget introduced by finance minister Nirmala Sitharaman was foretelling that the nation would be a $5 trillion economy by 2025 and there have been plentiful of allocations executed in infrastructure, which should support the road transport segment. "This should augur well for the tyre industry" he added.
K M Mammen said that the industry would face challenges in the near future due to the lack of credit funds, which have been partially addressed in the budget. Moreover, he welcomed the incentives granted for the segment of the electric vehicles, which is the sunrise industry and would have a long-term influence.