The Automobile sector has started to show the effects of the increased interest rates. The RBI on May 3 announced a steep 50 basis points hike in key short-term rates. For the Automobile sector, the rising interest rates mean direct impact on their sales as loans for purchasing vehicles turn dearer.
It was anticipated that the auto companies would have a tough time navigating the coming months and quarters given that the high interest rate scenario, is here to stay for a while.
Automobile sales in India grew at a record 27% in the financial year ended March 31 to 15.51 million units but the industry expects the pace this year to be around 12%-15% due to the higher sales base.
It was anticipated that the auto companies would have a tough time navigating the coming months and quarters given that the high interest rate scenario, is here to stay for a while.
Automobile sales in India grew at a record 27% in the financial year ended March 31 to 15.51 million units but the industry expects the pace this year to be around 12%-15% due to the higher sales base.
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