Car Price Cut: In view of the slowdown in the auto sector, automobile companies may cut the prices of their vehicles in the coming days. Union Commerce Minister Piyush Goyal has advised these companies to reduce the prices of vehicles to deal with the decline and slowdown in car sales.
At the CNBC TV18 Global Leadership Summit, Piyush Goyal said, the auto industry is sitting on very high margins and to boost the growth of the domestic auto market, these companies should reduce the prices of their vehicles. Pointing to Hyundai Motor India, which was recently listed on the stock exchange, Piyush Goyal said, the auto company which was recently listed on the stock exchange had invested 200 million dollars 25 years ago and the company has made good returns on this investment. Made amazing returns during this period.
Piyush Goyal said that in the last 10 years the company has sent 12 to 13 billion dollars as dividend and royalty to the parent company. He said, his own holding in the market cap of the company is equal to 15 billion dollars. The Commerce Minister said, if auto companies become more competitive in their pricing, I am sure that they can get a bigger market for themselves and their profits will also increase. Piyush Goyal said that there is huge demand for cars in India. And by keeping the prices of cars reasonable, only these companies will benefit. Recently, Maruti Suzuki Chairman RC Bhargava had expressed concern over the decline in sales of cars priced below Rs 10 lakh and said that the market for cars in this segment is shrinking.
Piyush Goyal was referring to the IPO of Hyundai Motors which was recently listed on the stock exchange. The company has raised Rs 27870 crore from the market at the issue price of Rs 1965. This was the biggest IPO in the history of the Indian stock market.
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