Next 2-3 qtrs to be challenging for auto sector: Hero Honda
Pawan Munjal of Hero Honda expects the environment for the automobile sector to be challenging for the next two to three quarters, as banks are still unwilling to lend given that risk aversion continues to be high. “Broadly, things are getting tougher and that takes its toll on the auto sector,” Munjal said.
Rural demand, however, according to him, continues to be robust as market penetration is quite low at below 10%. “The rural market is huge and untapped and Hero Honda will focus on this market.” He added that the Government expenditure on rural market would aid growth.
Commenting on competition, Munjal said that competition has always been there. “We will be coming out with new launches to grow our market share,” he said.
Commenting on Tata Nano launch, he said, “Nano has definitely put India on the international technology map. There might be a slight shift from two-wheelers to Nano, but it will have no major impact on the four-wheeler market.” Cost of ownership, according to Munjal, may deter two-wheeler owners from opting for Nano.