Anuj Kathuria, COO of Ashok Leyland, in an interview with CNBC-TV18, said that the automobile sector will recover from the slowdown and will be back on track latest by September.
“It’s nothing new for the industry and every time that we had a downcycle, the industry emerged out as a winner. Therefore, I am positive that we will come out of this downcycle as well," Kathuria said.
He believes that there is nervousness which is driving down demand among buyers of commercial vehicles, mainly due to volatile fuel prices, falling freight rates and uncertainty in policies.
“2013-14 was a big downcycle that we saw and after that, for the last 4 years we have been seeing growth,” he said.
On inventory level front, Kathuria said, “Our dealer pipeline would be less than a month and we need to keep around 3-4 weeks of inventories.”