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Davos 2020: Expect auto sales to revive during festive season of 2020: Eicher Motors
January 23, 2020

Davos 2020: Expect auto sales to revive during festive season of 2020: Eicher Motors

Eicher Motors Limited, manufacturer of Royal Enfield brand of motorcycles and heavy commercial vehicles, on Thursday said it expects auto sales to revive during the festive season of 2020,

Speaking to CNBC-TV18 at the World Economic Forum in Davos 2020, Siddhartha Lal, managing director, said, "It has become a climate conference. There are so many takeaways in terms of sustainability angle and in terms of what organizations need to be over the next 5-20 years, but even what they need to be today. It is also about how do we bring strong sustainability into our supply chain, into every aspect of business that we do. It is not just about making greener vehicles, but it is about the rest of it as well."

Talking on electrical vehicles, he said, "There is a lot of work going on in the electric space. However, that is still to come as the economics do not work and there are no subsidies. I am not asking for anything, but it is just that it is going to take time, the cost-benefit ratios do not exist right now. So, a lot of investment is going into the engineering part."

Speaking about the pricing for BS-VI products, Lal said, "So, if you are building something brand new, it is going to be more expensive. If you are just tinkering around and are able to meet BS-VI, then it is a bit less. But anywhere between 8 percent and 12 percent is what we are seeing across the board in most cases and might be slightly less for some, but you could take an average of nearly 10 percent and I am talking about both two-wheelers and trucks."