Auto industry set to see 'unprecedented' volatility: Seshayee

The automobile sector is likely to witness unprecedented volatility but there is an opportunity for it n ever risk, according to Mr R. Seshasayee, Executive Vice-Chairman of Ashok Leyland.

“I am representing an industry which is notorious for market volatility. We expected there could be a slowdown in this quarter (in January-March). When that did not happen, we started to worry. This is pretty much hardwired in managing the market volatility,” he said at a conference on “Thriving in an Imbalanced World” organised by CII here. Talking about the risks ahead, he said, “...there has been market risks in the last 200 years. I think we can manage the 200-year volatility (in the global market). But I think, what we are going to witness in the next few years, is a sort of volatility which we have not witnessed in the past”.

Mr Seshasayee underlined that the changes in global market conditions are going to be large.

Our Bureau reports: A conducive environment with transparent and credible regulatory mechanism is required to attract private sector investment. This could reduce the pressure on public sector funding, said the Union Shipping Minister, Mr G.K. Vasan.

The increased level of private sector participation in financing of infrastructure has also generated optimism that public funding need not necessarily be the exclusive route for infrastructure investment, he said in his address.

The Government's strategy is to increase investment in infrastructure through a combination of public investment and public-private partnership. During the 12th Plan, infrastructure investment is expected to go up to Rs 50 lakh crore. “We aim to attract a contribution of 50 per cent from private sector investments,” Mr Vasan said.

During this year, tax-free bonds of Rs 60,000 crore were announced for financing infrastructure projects. The Finance Minister has extended the availability of tax-free bonds of Rs 5,000 crore for the ports sectors for one more year, he said.

“I am sure if the private sector participants come forward to investment in infrastructure, with the right mix of courage and caution, we would be able to sail through the turbulent waters and achieve high growth,” he said.