‘Auto industry facing structural challenge’

New Delhi: Indian auto industry is facing a big structural issue with affordability becoming one of the most serious challenges due to several factors, including headwinds created by government policies, according to Toyota Kirloskar Motor Vice-Chairman Vikram Kirloskar.

With the transition from BS-IV emission norms to BS-VI due in April 2020, he said vehicle prices will go up further, thereby affecting affordability as percentage of EMIs of a consumer's salary will rise.

"It is a big structural issue that we will have to go through...Affordability is the real problem," Kirloskar said when asked how the recent steps taken by the government to boost auto industry has helped.

"When demand in auto sector (is low), people are not buying cars how much can the government do?"

Kirloskar said while the government has done a lot of things such as increasing and improving roads,"Some things they have done, which I believe have created headwinds for auto sector."

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