NITI Aayog vice-chairman Rajiv Kumar has raised a big question that auto companies are making profits, yet their sales are falling. Why is this happening? Auto companies have to think this only.
He said that there could be many reasons for the decline in auto sales. The answer will have to be given to auto companies that while profits are increasing, why are sales decreasing.
On a question from India Today and Aaj Tak news director Rahul Kanwal, Rajiv Kumar said, "Any industry that is so old and has been profitable for so many years, should be able to take measures to stop the decline in sales. '
Maruti chairman responded
Rajiv Kumar asked that when companies are making profits, should they not increase the price by reducing the price? Rajiv Kumar's claim that Maruti chairman R.C. Bhargava said strongly that most of the car companies are at a loss. He said, 'GM, Ford is closing the business. Most foreign companies are at a loss. Tata is in loss, Mahindra is in profit due to SUV. Maruti is profitable because it is very conservative, we give salary less to the top management, do not waste money. There is a lot of reserve.
On this, Rajiv Kumar again said, 'Component export is getting very good. Companies are doing well in exporting cars.
In response to this, Bhargava said that we are exporting 120,000 cars in a year, we are exporting to Japan. But this year we decided to give European standard car in India at no extra cost. The car companies will also have to pay attention to the expenditure that has increased to comply with the standards.
Significantly, the condition of car companies in the country has been bad for the last about a year. Continuation of decline in sales of cars and other vehicles has been going on for 10 consecutive months. Even in August, there has been a steep decline of 29 percent in car sales. Sales of cars of the country's largest car company Maruti Suzuki have fallen by 36 percent.