The automobile sector will be helped by the Reserve Bank of India on Friday after a big cut in the policy rate i.e. 0.50 percent. This is because the rate cut will make the auto loan or car loans cheap and the sales will get good support. According to PTI news, Shailesh Chandra, president of the Society of Indian Automobile Manufacturers (SIAM), said in a statement that such cuts in repo rates will have a positive impact on the auto sector. This will increase access to finance at low cost. There will be a positive spirit among consumers in the market.
Repo rate came to a four -year low
According to the news, the RBI on Friday cut the repo rate by 50 basis points (0.50%) to promote growth, which has come to a four -year low of 5.50 percent in FY 2025. The interest rate reduction has brought relief to home, auto and corporate lending borrowers. The Automotive Component Manufacturers Association of India (ACMA) said that the decision to reduce the repo rate by RBI and reduce cash reserved ratio (CRR) is a time and active step towards encouraging domestic demand and supporting industrial development.
Borrowing costs expected to be reduced
ACMA chairman Shraddha Suri Marwah said that the reduction in interest rates is expected to reduce the cost of borrowing for both consumers and businesses, which will give very important support to the automotive sector. This sector is going through a complex comprehensive economic environment. Mahindra Group CEO and MD Aneesh Shah said that this step reflects its active attitude to support RBI’s trust and frequent expansion in comprehensive economic basic things.
Finance in entry and mids segment will be easy
Shah said that this would reduce the cost of borrowing, improve liquidity and further strengthen India’s infrastructure and manufacturing speed. Renault India Country CEO and MD Venkataram Mamilapalle said that policy is expected to strengthen liquidity and reach low interest rates to consumers, which will increase demand in the economy.
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