The slowdown in demand is a fact, but the consensus that banks are not extending enough credit to help us navigate through the current slowdown is misplaced. This is a false narrative as Economics 101 suggests a bi-directional causality between economic growth and credit off-take.
He also said that while the industry needs support for both wholesale and retail financing and the rate cuts necessary for revival have been put in place, he asked the lenders to be more supportive to the suppliers and dealers.
Yokohama-based Nissan said profit for the fiscal year through March 2020 will drop to 170 billion yen ($1.5 billion), as restructuring and product development expenses combined with currency-related losses and rising material costs slam earnings.
European Union nations agreed in 2014 that carmakers should limit CO2 emissions to 95 grammes per kilometre across their entire model range within seven years. The figure for 2015 stood at some 130 grammes per kilometre on average.
With India emerging as one of the world’s largest auto markets — with annual sales of 19.8 million vehicles in FY15 — the auto industry is set to become the engine of the government’s ‘Make in India’ initiative, according to an EY report.