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Auto Mobile - February 25, 2024

Slowdown in car industry ends in dealership closures

Slowdown in car industry ends in dealership closures 1

New Delhi: The slowdown inside the car industry and the liquidity crunch within the marketplace are affecting the provider network. According to the statistics from the Federation of Automobile Dealers Associations (FADA), the apex body of vehicle dealers, the entire dealership closures within the closing 18 months is an impressive 271 with 245 passenger vehicle dealership shutdowns. In Mumbai, 34 have closed, followed via New Delhi (27), Pune (24), and Chennai (15).

 dealership closures
While Nissan registered the most supplier shutdowns, which total at forty-four, followed through Hyundai at 39, Renault at 21, and Mahindra & Mahindra and Tata Motors at 20 each. As consistent with the dealers and financiers, several things are liable for this: banks taking a careful approach on working capital loans, tight liquidity, channeling finances into real estate through a few sellers, and the slowdown in automobile sales in keeping with a ToI file. A Nissan spokesperson refuted the FADA records in an emailed statement, “We have had 25 dealership closures.” Renault stated, “On the 21 dealerships final, the same is not authentic as we’ve ensured that in case of unavoidable closures, such centers are both taken over or new facility created within the identical market to make certain business continuity.” However, Maruti and Hyundai denied commenting.

Tata Motors VP (sales advertising and customer support, passenger vehicle commercial enterprise unit) Sibendra Barman stated, “During these 18 months, we’ve got severed our relationship with 21 dealer principals. However, at some point of the identical length, we’ve brought extra than fifty-four supplier principals who have supplied us with over 80 dealerships.” “In the past 18 months, we’ve got had five supplier closures throughout all of the five states of southern India put together, and this is not anything unusual,” stated Mahindra and Mahindra leader of sales and advertising and marketing (automobile division) Veejay Ram Nakra.

New Delhi: The Centre is considering an Rs seventy-four,000-crore bailout plan for the state-owned telecom businesses BSNL and MTNL. Its strategy includes presenting a good-looking go-out package deal to heaps of employees, along with a further five in keeping with cent reimbursement (exgratia) to make the voluntary retirement scheme (VRS) attractive at the same time as an offering for 4G spectrum and capital expenditure. It may be cited that BSNL is the largest loss-making public sector unit (estimated Rs thirteen 804 crores in the financial year 2019) inside you. S. At the same time, MTNL changed into 0.33 with a loss of Rs three,398 crores. Only debt-weighted down Air India has a higher loss than MTNL. According to a TOI report, if this bundle goes via, the two telecom PSUs will overtake Air India as the most significant drain at the national exchequer.

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