Car Price Cut: Given the slowdown in the auto sector, automobile companies may cut the prices of their vehicles in the coming days. Union Commerce Minister Piyush Goyal has advised these companies to do so to cope with the decline and slowdown in car sales.
Piyush Goyal said at the CNBC TV18 Global Leadership Summit that the auto industry has very high margins, and to promote the growth of the domestic auto market, these companies should reduce the prices of their vehicles. Piyush Goyal pointed to Hyundai Motor India, recently listed on the stock exchange. The auto company invested $200 million 25 years ago and has made amazing returns during this period.
Piyush Goyal said that in the last 10 years, the company has sent dividends and royalties of up to $12 to $13 billion to the parent company. He said his holding in the company’s market cap equals $15 billion. The Commerce Minister said if auto companies become more competitive in their pricing, they can get a bigger market for themselves, and their profits will also increase.
Piyush Goyal said that there is a tremendous demand for cars in India. And keeping the price of cars appropriate will only benefit these companies. Recently, Maruti Suzuki Chairman RC Bhargava expressed concern over the fall in sales of cars priced below Rs 10 lakh and said that the market for cars in this segment is shrinking.
Piyush Goyal referred to Hyundai Motors’ IPO, which was recently listed on the stock exchange. The company raised Rs 27870 crore from the market at an issue price of Rs 1965, making it the biggest IPO in the Indian stock market’s history.
