Auto sector expects RBI move to facilitate cheaper loans
Country's largest two-wheeler maker Hero Honda said the step taken by the central bank would help the economy grow.
By PTI |
NEW DELHI: The country's auto industry, which has been severely hit by sluggish market condition, today welcomed RBI's decision to cut rates, saying the measure will improve overall liquidity condition and benefit buyers, as interest rates on auto loans are likely to come down.
Country's largest two-wheeler maker Hero Honda said the step taken by the central bank would help the economy grow.
"This is a welcome move and it was long overdue. Our economy has been slowing down and this move will help in getting the momentum back," Hero Honda Senior Vice President (Sales and Marketing) Anil Dua told reporters.
This rate cut would eventually lead to cheaper and easier finance for auto industry, specifically benefiting the two- wheeler segment, he added.
Dua said the industry has been suffering due to high interest rates on auto loans and unavailability of finances.
However, Honda Siel Cars India Vice President (Marketing) Jnaneswar Sen was skeptical about the ground level benefits that the consumers would enjoy.
"RBI has cut rates several times in the past, but banks did not follow immediately. We will have to wait and watch for the real benefits to be seen," he added.
Carmaker General Motors India Vice President P Balendran said, "Ultimately interest rates will come down and finance will be eased out."
Country's largest two-wheeler maker Hero Honda said the step taken by the central bank would help the economy grow.
"This is a welcome move and it was long overdue. Our economy has been slowing down and this move will help in getting the momentum back," Hero Honda Senior Vice President (Sales and Marketing) Anil Dua told reporters.
This rate cut would eventually lead to cheaper and easier finance for auto industry, specifically benefiting the two- wheeler segment, he added.
Dua said the industry has been suffering due to high interest rates on auto loans and unavailability of finances.
However, Honda Siel Cars India Vice President (Marketing) Jnaneswar Sen was skeptical about the ground level benefits that the consumers would enjoy.
"RBI has cut rates several times in the past, but banks did not follow immediately. We will have to wait and watch for the real benefits to be seen," he added.
Carmaker General Motors India Vice President P Balendran said, "Ultimately interest rates will come down and finance will be eased out."
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