The reduction in key benchmark rates by the Reserve Bank of India (RBI) is expected to bring positive sentiment across the market and strengthen demand for price-sensitive motorcycles and entry-level automobile segments.
Industry players noted that tax cuts are coming in close proximity after income tax relief provided to individuals has a positive impact on the automotive sector.
The Monetary Policy Committee (MPC), led by RBI Governor Sanjay Malhotra, reduced its 25 basis points to 6.25% on Friday. This was the first cut since May 2020 and the first revision two and a half years later.
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“The current tax rate reductions are closely followed by the relaxation of income taxes for individuals within the budget, which means increasing accessibility by reducing funding costs, thereby increasing accessibility, thereby increasing accessibility And it certainly has a positive impact on the automotive sector, as it generates positive feelings. Markets, “Shailesh Chandra, president of the Indian Automobile Manufacturers Association (SIAM), said in a statement.
Expressing a similar opinion, CS Vigneshwar, president of the Federation of Automotive Dealers Associations (FADA), said: £Rs 1275 lakh, which will increase disposable income for consumers. ”
He added: “We expect strong demand for price-sensitive motorcycles and entry-level car segments as car loans are set to be more affordable.
“When combined, these measures will help reinvigorate lagging segments and catch up to the broader market. Fada praises RBI for promoting growth while continuing to “neutralize” inflation . India’s auto retail sector for the coming months. ”
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“We are pleased to announce that COO Tarun Garg, Full Time Director, Hyundai Motor India Ltd (HMIL), said: Future emotions. ”
It is also expected to further boost demand in rural markets.
“We believe that rural contributions will continue to improve with strong measures focused on increasing productivity, MSP support and promoting government support loans to farmers via Kishan credit cards.” Garg says.
He further said, “road infrastructure continues to grow steadily and is increasing demand in rural areas,” he said. High rate.”
In particular, over the past few years, rural areas are indeed the cornerstone of the HMIL strategy, saying, “Our country contributions have grown consistently, and at high potential locations from both sales and customers The Rural presence of the service is continuously strengthened.
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Date originally published: February 8, 20025, 09:11 AM IST
