Lower interest rates and a good monsoon augers well for the auto industry says Mahindra and Mahindra's (M&M) Pawan Goenka. Speaking to BloombergQuint Goenka says he is fairly confident that the double-digit growth in monthly car sales will continue.
The cheer doesn't spread across to the commercial vehicles space though which Goenka says is a matter of concern.
Fatter Discounts
Festive season discounts are only getting bigger and bigger, but M&M's not really worried about it. In fact Goenka says car makers factor in discounts when they decide on the price of a car.
Stuck In Low Gear
The rise in demand will not translate to an immediate spike the investment cycle though. 2-3 years of de-growth has taken a toll on the capacity utilization in the economy says Goenka.
If you have one more year of good demand growth, which signs are pointing at, you should see a start in the investment cycle next year.M&M's Executive Director Pawan Goenka
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