Tata to Offer More Discounts (Folo) Big Three Japan Automakers Increase Production BUSINESS ASIA By Bloomberg

Tata Motors, the biggest maker of commercial vehicles in India, said it will offer more discounts to counter a sales slump caused by five-year-high interest rates in the country.

“We would like to see sales improve, but that would depend a lot on external factors,” the company’s managing director, Ravi Kant, said. “We are looking at providing more incentives to get customers.” He did not give more details.

Higher auto loan rates have tamed demand for cars, trucks and buses this year in the fourth-largest economy in Asia. Automakers like Tata Motors have cut production and others have delayed opening factories because demand has slowed.

“Higher interest rates have come at a time when companies have planned large capital expenditures,” said Kant, whose company plans to set up three factories in the next 18 months. “It’s a major challenge and a burden on the industry. We are taking every step possible to stay above water.”

Originally published by Bloomberg News.

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