Auto market to face lower demand due to Rate hike
The auto world is about to face the second tough condition after the hike in input cost. The auto loan rates will be hiked up in the Indian auto market by various financing companies. The condition is arrived due to the fresh rates determined by the Reserve Bank of India. The car manufacturers are concerned over this continuous hike in the rates of loans.
Addressing the issue, Mr Arvind Saxena, sales and marketing director at Hyundai India commented that the continuous hike in the rates of interest is going to affect the overall demand in Indian auto market. He said that the hike has reached a level of concern and should be looked after immediately.
He also stated that the interest rates have reached at alarming level after a continuous hike since past 5 years. Ajay Seth, CFO of Maruti Suzuki also expressed his concern over this increasing interest rate. He pointed out that the rising interest rates are becoming a topic of concern when the liquidity was not. He also said that this increase is sure to affect the market overall conditions. On the issue, Shashank Srivastav who is the Maruti's chief GM (sales marketing) has commented that the company is facing stress at the retail end due to this increasing rate of interest.
He also said that in order to avail the past market situations, the company might have to opt for discounts and offers which will attract the customers more. On the issue, Sumit Bali of Kotak Mahindra Bank has commented that interest rates have hiked up as per the decision of RBI but it will be active till the month of March as it is a big month. He also said that corrective measures will b taken on this front in the month of April 2011.
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