Tata Motors CFO says smooth road ahead for auto sector

Recently the President and Chief Financial Officer (CFO) of Tata Motors, Mr. C Ramakrishnan was awarded the CFO of the year award during the one of the prestigious awards ceremony. He also won the best performing CFO in the auto ancillary and auto space. When asked about where the auto sector is heading for now, Mr. Ramakrishnan commented that the cycle in the auto segment remains for around five to six years of duration. They are just standing at the beginning of one such cycle. He cheerfully added that the company hopes this cycle sustains for a longer time and stay in a much better and stronger way. The road, the infrastructure and many other sectors are going through a lot of activity. Also, the economy is performing well. That is why he hopes that everything goes in favour of the auto industry. This includes the demand of the customers and also the total volume.

Regarding any specific concerns for the industry this fiscal, Mr. Ramakrishnan said that there will always be concerns for the same. Though these concerns will not be too much in reference to the demand or the volume or for the market view but mainly the concerns will be much more from the material prices, tyres, steel and cost pressures. He further elaborated upon the reason for the success of Tata Motors’ DVR issue. This issue has been accepted in a good way in the market. Mr. Ramakrishnan said that the main reason for its success was the company’s policy for financial deleveraging of the balance sheet. He also added that the reaction shows the market confidence. The markets are impressed with the company’s turnaround. Jaguar-Land Rover has contributed a lot in this market confidence. Jaguar Land Rover has shown great turnaround and has registered certain very impressive outputs during the first quarter.

India’s largest car manufacturers, Tata Motors has launched many popular products till now. One such product is Tata Nano which is popularly called the People's Car. The other popular products of the company include Tata Indica, Tata safari, Tata Vista and the new crossover, Tata Aria.

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