Finance Minister Nirmala Sitharaman on Saturday said Indian consumers are sharp and they withdrew from buying BSIV vehicles in advance to make their purchase lasts longer in the wake of new BSVI norms that affected the automobile sector.
Delivering the G Ramachandran memorial lecture here, an event organised by the Southern India Chamber of Commerce and Industry, the minister said Indian investors are much more sharp.
“Vehicles have a span of 15 years and to ensure that their purchase lasts longer, the consumers withdrew from investing in BSIV vehicles and probably are waiting for the BSVI vehicles. I don’t know what is the fact but due to this, the automobile industry ended up having a huge inventory of BSIV vehicles.
“We are aware of the problems the auto industry is facing. The government is receptive and measures are being taken to deal with the challenges that the industry is facing,” she said. She stressed banks need to strengthen their mechanisms for assessing the quality of assets.
The minister said that during the period 2007 to 2013, the non- performing assets did multiply and become a burden on the books of banks. Many banks have recovered out of it. But they have to work on to assess their risk and how best they can rate a property or asset quality so that their functioning is smooth.