Automobile Companies Term RBI’s Rate Cut As “Too little Too Late”

Automobile companies think that the decision of the Reserve Bank of India (RBI) to cut interest by 25 basis points is "too little, too late." "While this is definitely a welcome move, but it is too little too late. We were expecting a rate cut of 50 basis points," PTI quoted General Motors India Vice President P Balendran.

Similarly, Ashok Leyland Vice- President (Buses) T Venkataraman said, "25 basis points cut is way too less."

Society of Indian Automobile Manufacturers (SIAM) Deputy Director General Sugato Sen welcomed the move, but he also added that it was not enough. "The 25 basis points reduction is not going to have any impact on the EMIs. We expect the rates to further come down in the next few months and also the banks to reduce their lending rates," he said.

Rakesh Srivastava, senior vice president, sales and marketing, Hyundai Motor India Ltd said, "We look forward to further reduction and further initiatives on the ease of getting finance and low cost of financing. This will help the auto industry by bringing down the cost of ownership of vehicles and will act as catalyst to bring growth in the automobile sector."

He further added that the move would help the auto industry and the manufacturing sector in general, which is an integral part of the Narendra Modi government's Make in India campaign.