Sundaram Clayton Ltd, the holding company of TVS Motor, has said it might report a flat growth during the current fiscal and the following year would be challenging.
Speaking at the annual general meeting on Thursday, SCL chairman and managing director Venu Srinivasan said last year was volatile due to the economic condition in the EU and the US. This impacted the growth and also the economy.
Growth in India threatens to be 5.2 per cent against the backdrop of a slowdown in savings rate, which is getting diverted to unproductive areas like gold, he said.
On the automobile industry, he said, this year car and two-wheeler industries would grow in single digit and commercial vehicles would see a negative growth.
On the company’s performance, he said new orders would result in around Rs 250 crore in revenues in five years and the next 18 months would be very volatile. The company had developed around 62 products last fiscal for customers like Daimler, Volvo, Hyundai and others.
At present, the new products contribute around 3.5 per cent and in the next two years it would grow significantly, according to him.