Mahindra and Mahindra (M&M) is one the few companies which has been exuding some optimism about the next year. The year has not been as expected for the auto industry as a whole, but president of automotive sector, Pawan Goenka said that the tractor industry has done very well.
According to him, the growth has been remarkable in the tractor segment and there is no sign of slowdown. "Tractor industry to see a 10-12% industry growth next year," he pointed out.
The company has not seen any slowdown in rural consumption, he further stated. Meanwhile, he also feels it would be difficult to pass on the commodity prices to customers. The company also expects to see some stress on operating margins. Here is the edited transcript of his interview to CNBC-TV18. Also watch the accompanying videos. Q: Are things slowing down or things pretty okay in the company?
A: In last three-four months, nothing much has happened which will indicate a slowdown. The year overall has not been well as expected for the auto industry, but it has been very well for the tractor industry. The growth in that business has been rather remarkable. There is no sign of slowdown on the tractor side. Q: There has been some fear off late that may be rural consumption demand is coming down. Are you picking up any early signs at M&M?
A: There is some concern about rural economy and consumption is slowing down, but we have not seen that. In fact both our business (auto and tractor) are doing quite well in the rural areas. The tractor growth has been about 20%. M&M is keeping pace with the industry growth. Right now, we don
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