Mr. Rajiv Bajaj has called Indian auto products mediocre while blaming the industry for most of the slowdown.
In a recent turn of events, Rajiv Bajaj, has called out the auto industry, blaming them for the slump. While most of the auto market players have sought government aid to support the sector, the Managing Director of Bajaj Auto has asked the industry to look at its own shortcomings before asking for stimulus from the government. He’s been quoted saying that the industry should be resilient enough to absorb such shocks.
Mr. Rajiv Bajaj has gone to the extent of calling auto products mediocre and has asked them to introspect and make globally competitive products. Though at the interview, he refrained from taking any names, he specified that a lot of companies are unable to export because, by world standards, their products are mediocre. He mentioned that if a company is making everything under the sun – scooters, bikes, cars, jeeps, SUVs, trucks and buses, they are obviously not going to be world-class at anything.
Speaking about the 2-wheeler segment, Mr. Rajiv Bajaj has stated that the 5-7% sales decline cannot be called a crisis. Around 3 lakh job losses have taken place due to the slowdown.
On Friday, Finance Minister Nirmala Sitharaman announced steps to boost the economy, which also included measures for the auto industry. She has permitted government departments to purchase new vehicles to replace old ones. All vehicles purchased till 31st March 2020, could avail of the benefit of additional depreciation of 15%, which will increase the higher depreciation on all vehicles to 30%. She added that BS4 vehicles purchased till 31st March 2020, would remain operational for the entire period of their registration.
Auto Industry Slump
– Rajiv Bajaj blames auto sector for slump, mediocre products
– Said 5-7% sales decline in the 2-wheeler segment cannot be called a crisis
– Government announced few steps to boost the economy, included measures for the auto industry
Source – EconomicTimes.com