Automobile industry body Society of Indian Automobile Manufacturers (SIAM) on Wednesday said it expects passenger vehicle demand to pick up in the second quarter after a good monsoon and several incentives announced in the union budget.
In an interview to CNBC-TV18's Parikshit Luthra, Vishnu Mathur, director general, said, "This particular slowdown that we are seeing has been one of the longest slowdowns that we have faced in the last 15-20 years. This slowdown has impacted every segment of the industry. This has been going on for almost one year now."
Talking about the big push of electric vehicles, Mathur said, "That was certainly something that we had not expected. We had expected some kind of stimulus given to us. Even if temporarily, the GST rates could have been brought down to kick start the consumption pattern all over again."
Speaking about the auto slowdown, he said, “Most original equipment manufacturers (OEMs) have gone in for planned as well as unscheduled production cuts. That is a way of reducing their production and in a sense, people are asked to be at home for those periods of time. Initially, if this kind of a situation continues, we would at the first stage we could see stoppage in new hiring and if this continues for even longer period of time, then I think companies will have to take hard decisions about how to manage their costs."