It’s really depressing to know that a leading car manufacturer is now forced to borrow funds from public.
This initiative is taken by Tata Motors to fulfill its ongoing requirements including the funding of Jaguar and Land Rover deal. Today, we actually realize how hard the impact of recession is on the Indian car market. Till date, we heard about General Motors and Ford pleading for survival. But, today, the situation has become so worst that a car manufacturer like Tata is bound to take fund from public and raise capital. The drip in car sales in November also reflects the current crisis in the car industry.
It’s the first time since 1995 that Tata is borrowing from the public of up to Rs 2,700 to raise capital. But, even then the company offers benefits to the public by offering an 11% annual interest for a period of up to three years, 10% interest for one year on a minimum public deposit of Rs 20,000 and 10.5% for two years.
So, at one hand where Tata will raise its fund, on the other hand public will enjoy the high interest rates on the amount they deposit with the company.
That’s really depressing to know. There are many other car manufacturers like General Motors and Ford who have also claimed a bankruptcy. I am just wondering where will the cars industry head with such a steep fall.
Today only I read somewhere that the car industry is crying for help from the government. Has the car market gone so down that the industry is not able to even standstill?
Are the Tata's on a low?. The Recession, The delay in Nano Launch and now it is the Mumbai terror strike on Taj.. Hope all will be well in the near future!!