Indian auto market yet to come out of slowdown: Maruti Suzuki CEO

Indian auto market yet to come out of slowdown: Maruti Suzuki CEO

Agency News

Ahmedabad, Jul 27 : Managing Director and CEO of Maruti Suzuki, Kenichi Ayukawa said on Saturday that nobody knows how much time the sluggish Indian automobile market would take to come out of the ongoing slowdown.

Mr Ayukawa, who was here to participate in the second Automotive Components Manufacturers Association of India (AMCA) Value Chain Summit, termed the current situation a difficult one and expressed hope that it would be overcome.He, however, said that his company and other auto sector players were trying their best.

''Nobody really knows. We are trying and doing our best,'' he said, when asked how long will the Indian automobile market take to come out of the current slowdown. To another query about the expansion plans of the company's plant in Gujarat in these challenging times, Mr Ayukawa said the third unit of the plant was under construction, which would finish by 2020 and was expected to take the total production capacity in the plant from the current five lakh units to 7.5 lakh units.

He emphasised on the need to localise the auto component supply segment and put these units closer to the main vehicle plants, to bring the cost down and fight the demand downturn. Mr Ayukawa also praised the Gujarat government for its good policies.

Agreeing that the electric vehicles were a challenge for the current auto industry, he however, said that it would take quite some time for such vehicles to compete strongly with the current ones.

''Even though the government has issued guidelines, it would take at least 5-10 years for the electric vehicles, to see large-scale production,'' he added.(UNI)