Cars sales to see a further dip?
With the increase in the interest rate, the automotive industry isn’t happy as this rise in interest will mean a further reduction in buying cars. Recently, the Indian car market has seen a downhill in sales, and the annual growth has been reduced to single digits from a whooping 32 percent a couple of years ago.
The Society of Indian Automotive Manufacturers released a statement on this hike. The statement reads, ‘This increase in the repo rate is likely to impact the interest rates of car and automobile loans further. Evident from the continuous decline of sales in the last several months, the auto industry has already been reeling under a high interest regime. The industry had been hoping for a recovery through the ensuing festive season, anticipating an improvement in markets. But this move comes as a surprise dampener to all these expectations. The repo rate will also downgrade the sentiments of consumers struggling under the burden of high Equated Monthly Installments.’
It further continues as, ‘SIAM felt that the ideal move by the RBI would have been to initiate measures that would enthuse the market participants, boost investor sentiment and bring confidence back in the economy.’ So, possibly the rise in the interest rates could hamper the growth.
Being born and brought up in a family that has been a part of the Automotive industry for over seven decades, Rachit has cars in his blood. Four wheelers are his childhood love, and he has grown up playing with bolts and spanners. To add more value to this passion, he studied automobile engineering and even karted at National level competitions.
Soon after that, he got into motoring journalism- where began the process of testing and evaluating cars. He has driven a wide range of cars beginning from Tata Nano to the Aston Martins, most of the cars that are currently sold in the Indian car market. Apart from this, he has also done many long road trips, and shall continue to do so. Rachit was one of the first journalists to take a Nano across the Golden Quadrilateral.
