Anand Mahindra. (Photo: AP/PTI)
Anand Mahindra, chairman Mahindra Group, expects a revival in demand for passenger vehicles and tractors in next fiscal on the back of good rainfall and record reservoir levels.
The auto sector has been witnessing a slowdown over last few months forcing manufacturers to cut production and offer steep discounts, however, Mahindra, whose firm leads the tractor market, is optimistic of a turnaround. "Ironically two areas where people think there is gloom, our people are beginning to smile again," Mahindra said at a panel discussion in Mumbai today.
"Some of the most optimistic people in our group today are our automotive people. They are seeing a good close out this calendar year and they are hopeful of the next year particularly after April when new emission norms come into place. We pass that hump and there will be revival in demand," Mahindra said.
Passenger vehicles (PV) sales in India have declined in 11 out of 12 months as a slowing economy prompted buyers to defer purchase. India's economy grew 4.5 per cent in September, the slowest in 6 years. PV sales in the domestic market declined in November after a blip in the preceding month. They fell 0.84 per cent year-on-year (YoY) to 264,000 units in November, according to data released by Society of Indian Automobile Manufacturers.
Mahindra feels tractor sales too, will see a pick up from next March. " We expect revival next year post March because overall rains have been strong, reservoir levels in India are record high and so we think for rabi crop it bodes well," he said