Tata Motors’ Indian operations were heavily impacted in 2012-13 by the slowdown in the domestic auto sector, high interest rates and stagnation of industrial growth in sectors such as mining and infrastructure, according to Cyrus Mistry, Chairman, Tata Motors.
In his maiden address to company shareholders at Tata Motors’ 68 annual meeting, Mr. Mistry said, “the road ahead for Tata Motors continues to be challenging but full of opportunities.”
“In India, there was intensive engagement between the government and industry in the last few months, and there are efforts to fast-track long-gestation, large investment infrastructure projects and to attract foreign investment across sectors.”
He pointed out that this resulted in measures to improve the economic climate. Government schemes like the Jawaharlal Nehru National Urban Renewal Mission (JNNURM), under which the government would procure 10,000 buses, would help.
With regard to the Indian automobile sector, Tata Motors was eager to engage with the government “in a constructive dialogue for an overall transportation strategy which would incentivise and stimulate use of more fuel efficient engines, hybrids and other technologies which will positively impact environment and economy.”
Responding to shareholder queries regarding halving of dividend to Rs.2 for 2012-13, he said, “in fact, the first quarter of the current fiscal was also very challenging. The standalone performance was lower during FY13 and we had to dip into shareholders’ fund to give a dividend.”