Auto sector slowdown due to loan related issues, BS-VI transition: Tata Motors

Auto sector slowdown due to loan related issues, BS-VI transition: Tata motors

The automobile industry will gather pace by July-August this year , Tata motors which is one of the top official motors they said that they attributing the current temporary slowdown to issues like consumers facing problems in securing vehicle loan and the companies shifting to BS-VI emission norms as mandated by the government.

They hope the sale of passenger vehicles will record pace by July-August before the festival season, Tata Motors president Mayank Pareek, told reporters after launching the company's new car Altroz in Madhya Pradesh. Also he hoped that the vehicle market would grow due t the continuous expansion of infrastructure in the country and the increasing population of young professionals.

Pareek said that about 74% of customers in the country buy cars by taking loans from bank.But for the last 12 to 18 months, customer in the country are facing difficulties in getting vehicle loans from banks.

Also he said that due to the development of standard change from BS-IV  to BS-VI, there has been a slight slowdown in the entire motor vehicle industry as all the vehicle manufacturers are currently finishing their old stocks of BS-IV class vehicle. Pareek said they have exhausted stock of B- class vehicle in our factories in the first nine months ( April -December ) of the ongoing financial year.

The company hopes that by February 1, the stock of vehicle in this category will be reduced to less than 500 units with Tata dealers. As per the order of SC to reduce the environmental pollution, BS-VI emission standards are going to be implemented from April 1 and new vehicle will be sold in the country. with this registration of BS-IV category will be stopped.