#EXCLUSIVE - Gadkari to meet auto sector captains on 3 Aug for THESE issues; watch out for Bajaj Auto, Maruti, Ashok Leyland, expert says
Two important issues that are likely to be discussed is CAFÉ-2 and BS-VI Phase-2, Bhutani said. CAFE 2 or Corporate Average Fuel Economy norms which are defined by the Government so that the industry gives best products to the customers
Minister for Road Transport and Highways (MoRTH) Nitin Gadkari is likely to meet with the captains of the auto industry on 3 August (Tuesday) as the government turns its focus on this sector. In the meeting 2-3 important issues are likely to be taken up and this meeting is being seen as very important. Zee Business’ Chetan Bhutani has this exclusive report.
Bhutani said that the performance of this sector amid the ongoing Coronovirus Pandemic will likely be reviewed and discussed during the meeting. The discussion will be around the performance of specific segments including the passenger vehicles (PVs), Commercial Vehicles (CVs) and three-wheelers.
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Two important issues that are likely to be discussed is CAFÉ-2 and BS-VI Phase-2, Bhutani said. CAFE 2 or Corporate Average Fuel Economy norms which are defined by the Government so that the industry gives best products to the customers.
The government is also working on bringing the Phase-2 of BS-VI norms. Citing his sources, Bhutani said that the government is planning to implement these norms by 2022 and 2023 respectively.
The auto industry is of the view that the implementation of these norms are proving to be difficult amid the ongoing Coronavirus Pandemic. The industry would like it to get differed till 2024.
The Minister will listen to all the issues that will be raised during the meeting and also put his points across, Bhutani said.
Union Minister Gadkari could also emphasise on the use of flex fuel with a view on ethanol blending, he further said citing his top sources.
Stocks of top auto companies including Bajaj Auto and Hero Motocorp were up 1.8 per cent and 0.6 per cent respectively at the time this news broke out. They were trading at Rs 3829.60 and Rs 2763.30 on Friday on the NSE around this time.
Tata Motors and Ashok Leyland shares were also trading in the green around this time.
Meanwhile, Maruti Suzuki shares were down 0.2 per cent at Rs 6977.70.
Market Expert Sandeep Jain called it a big news and said all top companies including Ashok Leyland are likely to be benefitted.
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He said that auto ancillary companies are also seeing good action. It has been an underperformer.
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