The gloom surrounding the auto sector is unlikely to lift before a new government is installed at the centre in May this year, according to Pravin Shah, Chief Executive – Automotive Division, Mahindra & Mahindra.
Shah was asked if he sees any improvement in the current economic environment. “In the absence of any government actions or change in the overall sentiment, I do not see the quarter to be different than what we have seen in 2013,” he said. “I personally feel the challenges will continue for the industry and the economy as a whole.”
Also read: Here's how Dec fared for Maruti, Hyundai, M&M, Ford & GM
Auto sales have languished in 2013 in the wake of a slowing economy and high interest rates. M&M released its December sales numbers recently: the company sold 39,611 vehicles in the month compared to 45,297 in the same month last year.
On changes that could give a boost to the auto sector, Shah said sentiment could turn positive only after action by both the central bank and the government. “Once inflation comes under control, and we have a new government that formulates stable policies can we see some sort of revival in the industry.”
“If somebody asks me to put the timeframe [for revival in sentiment] maybe 5-6 months post,” he said.
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