The new emission norms were implemented in India in April, 2010. Car prices were expected to go high owing to these norms and that actually triggered sales. Now again, RBI is expected to bring a change in the car loan rates. Post RBI’s mid-quarter policy review, there may be a rate hike of 25 basis points. So, in case you are planning to buy a new car, better hurry! bmw mk
But, will the new car loan rates affect sales in India? New car prices in the country have been increased multiple times this year, but sales seem to be following the upward trend. This time, the rate hike has not been confirmed. Moreover, car makers feel a minor increase in auto loan rates is in no way going to have an impact on automobile sales in India.
India’s largest commercial vehicle manufacturer, Tata Motors feels that a trivial increase in loan rates may be absorbed by buyers. Other automobile manufacturers share the same thought. Auto experts feel there are many other factors that can catalyze the sales figures in India. India has received adequate rains this year and this can push sales in rural India. Monsoons in the country prevail for over four months. However, data reveals that India has received 99 per cent rainfall of the long-term average already, within the first three months of India’s monsoon season.
To make this year’s Indian car sales figures look even greater than what they actually are, are last year’s sad figures. Last year, sales were really low because of the financial downturn, and so, the growth this year looks great. India has witnessed hearty economic growth this fiscal with July data displaying sales of 1.24 million vehicles. That translates into 32 per cent higher sales than July 2009.
Surprisingly, India’s largest car seller, Maruti Suzuki, which offers great car discounts every year during the festival season isn’t doing so this year. Maruti says that the demand is so high that it is getting difficult to meet it. Maruti does not have enough capacity to bear the unbelievable demand for its cars.