WSN Service
NEW DELHI: Recession has hit India’s automobile industry, Hindustan Motors, manufacturers of Ambassador Model of cars, have cut car production by 40%. According 1 provisional results of the company’s working for the first six months of the current year, H.M. have suffered a loss of R.s 13.24 crore as compared to a loss of R.s 97 lakh during the corresponding period of last year. The government-owned Maruti Udyog Limited has accumulated an inventory of 800 Maruti vans. ~ There has also been a large scale rejection of Maruti cars meant for export owing to defective paint. Other Indian car makers, Premier Automobiles Limited, have unsuccessfully announced several incentives to raise the sales.
Other sectors of automobiles industry, too, have been crying wolf with finance becoming scarcer and costlier. How far the other sectors of India’s economy will be affected by the recession remains to be seen in the coming months, according to industry circles.
Article extracted from this publication >> December 6, 1991
