Wednesday, March 23, 2011

Double misery for car makers

Faced with surging raw actual costs, Indian car-makers now face three added austere challenges, including a curtailment of key components, which could appulse their achievement this year.

While they could canyon on the accountability of added ascribe costs to customers, a curtailment of components, circuitous by the March 11 tsunami and convulse in Japan and the Reserve Bank''s most recent amount backpack -- which could affect car costs -- accept fabricated them afraid over their affairs in the short-to-medium term.

"Yes, the industry is adverse problems, but we are demography it as a big challenge. We anticipate this is a casual appearance -- we see ablaze at the end of tunnel," General Motors India Vice-President P Balendran told PTI here.

A curtailment of analytical components, abounding of them sourced from Japan area abounding auto facilities, besides others, accept been damaged by the able convulse and tsunami, has fabricated the activity boxy for the industry, which is acceptable to acquisition it difficult to accommodated its sales targets, he said.

"Frankly, it is difficult to accommodated beforehand projected (sales) amount this time. A curtailment of components, including tyres, casting and steel, has fabricated things difficult," he said.

The backpack in key ante by the Reserve Bank, which is accepted to advance up absorption ante on auto loans, could avert abeyant buyers, Balendran said.

The General Motors controlling said, "It is difficult to adumbrate a timeline for the problems to be resolved." Home-grown auto above Mahindra & Mahindra is assured of the abiding abeyant of the industry, but feels the area is acceptable to be balked by the Japan crisis and RBI amount backpack in the short-term. .


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