Festive Season Will Be Decisive For Auto Sector, Says Pawan Goenka
Mahindra & Mahindra Ltd. Managing Director Pawan Goenka said on Tuesday that there was a sign of revival in the automobile sector, and the coming festive season will be "decisive".
"The automobile sector was sluggish since last 12 months. But with the Centre's slew of measures to give a fillip to economy since July 6, we are seeing the sluggishness giving way to positivity," Goenka told reporters.
There was a hope for revival of 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 of reduction in Goods and Services Tax, 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 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.