The current year is expected to be a tumultuous one for the Auto sector on account ofvarious regulatory changes especially the transition from BS IV to BS VI. The uncertaintyis further compounded by lower consumer sentiments resulting in inventory build-up andall OE manufacturers are aligning production in line with demand.
While India continues to be one of the preferred economies in the world in terms ofinvestment and growth these short term hiccups would have to be factored in by automobilecompanies and tyre manufacturers.
The country witnessed a smooth election and a new stable Government at the Centre. Anew Finance Budget has been presented with a vision to becoming a $5 trillion economy by2025. There have been substantial allocations made especially in Infrastructure whichshould help the Road Transport Industry. This should augur well for the Tyre Industry.
The consumer price inflation was within the target limits set by the Monetary PolicyCommittee of RBI and the Budget also focussed on the Ease of Doing Business Incentivesfor Start-ups and Housing for all.
MRF welcomes the incentives offered for the Electric Vehicles segment which is thesunrise industry but would have a long term impact.
The Indian Automotive Industry is expected to emerge as the world's third largestPassenger Vehicle segment by 2021 propelled by the economic growth that India haswitnessed and the accompanying increased consumption and urbanisation in the country.
In the immediate future the Industry faces challenges due to the paucity of creditfunds which have partly been addressed in the Budget with the expected infusion of Rs.70000 crore into the Public Sector Banks.
The next six months would see a volatile Auto sector on account of the shift to BS VIemission norms. The Tyre Industry would have to align its production in line with thisrequirement.
MRF registered a total income of Rs.16254 Crores for the year ended 31stMarch 2019. This year marks the 32nd year that your company is the marketleader in India and among the top 20 global tyre manufacturers. Our relentless focus onquality is the reason why we are India's most preferred brand and surging ahead.
Your company continues to win new accolades. This year we won the J.D. Power AsiaPacific Customer Satisfaction Award in two categories in the passenger category and morenotably in the farm segment where we have been awarded the first place in the inauguralJ.D. Power 2018 India Tractor Tyre Satisfaction Index.
Leadership comes along with great responsibilities and we are constantly striving toimprove our capabilities across the board. Work is on at full swing at our tenth plant atDahej Gujarat.
MRF's customer centric approach focus on quality ability to work seamlessly with ahost of partners and trade channels combined with a high degree of Innovation is what willpropel the company further and ensure its dominant position in the market.
Chairman & Managing Director