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‘Cars No More An Aspiration As They Once Were’: Asia’s Richest Banker Uday Kotak Asks Auto Industry To Boost Exports
The assembly line of the Honda Amaze car at Tapukara in Alwar, India (Virendra Singh Gosain/Hindustan Times via Getty Images)
Asia’s richest banker Uday Kotak has a warning for the Indian auto industry. The chairman of Kotak bank said today (5 September) that Indian auto industry should get ready for structural changes as cars are no more an aspiration as they once were, reports Economic Times.
Speaking at the Society of Indian Automobile Manufacturers (SIAM) annual convention, Kotak said that consumer preferences were changing pretty rapidly and car manufacturers should be prepared for surge on shared mobility. Giving a personal example, he said that his son uses cab aggregators like Ola and Uber instead of thinking of buying a car.
Kotak emphasised that a lot of internal changes were required in the industry to meet cyclical as well as structural challenges.
"We need to be confident and not arrogant about the current state in the auto sector," he said.
The banker said that the demand can be given a boost through price rationalisation by the industry as well as government spending. He urged the manufacturers to eye global market for exports.
Last month, Bajaj Auto's managing director Rajiv Bajaj had also suggested the industry to look for opportunities beyond India. "Industry needs to ask itself if it has done enough to become globally competitive," he said.
“Lot of companies are not able to export because frankly, by world-class standards, their products are mediocre,” he added.
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