India gloomier than China; Tata Motors will be reborn: Slym

Written By Unknown on Kamis, 04 April 2013 | 08.11

"The current economic environment in India is as bad if not worse than it was in 2008. The additional import duties will stress sales of JLR in India which is more worrying than China," says Tata Motors MD Karl Slym.

Speaking exclusively to CNBC-TV18, the veteran auto-industry executive says it is difficult to forecast the impact of new Chinese emission norms on JLR and estimates the emission norms to slowdown to cause hiccup in sales.

"The commercial-vehicle business will take at least 12 months to see a turnaround and steps have been taken to reduce inventory. I expect a mixed year ahead for Tata Motors and the company will be reborn," he says.

Slym says that the inability to launch a brand new product in 2 years was a serious shortcoming and hopes to launch Tata Motors' first new product in 12 months. "We are not looking at a bond issue yet and are adequately funded for now. There are plans to ramp up manufacturing and operations in India."

The company hopes to manufacture everything locally and will be sold under the JLR brand across India.

Sales of medium and heavy commercial vehicle will continue to be stagnant if  the government does not resolve the hurdles in the infrastructure sector, Slym says. On the government's plans to clear new a 4-wheeler category of the quadricycle, he adds,"I do not support the quadricycle in its current avatar. Indian quadricycles must have India-specific norms, not those of Europe."


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