'Rbi Move not Enough to Rev Up Automobile Sector'

NEW DELHI: The surprise 25 basis point rate cut by RBI has failed to enthuse the automobile sector. The sector that has been witnessing a prolonged slump said the move is “too little, too late”. However, it hoped that rates would be softened in future. T Venkataraman, vice-president (Buses), Ashok Leyland, said: “Twenty-five basis points cut is way too less.” Echoing similar views, Society of Indian Automobile Manufacturers (SIAM) deputy director general Sugato Sen said t was not enough, although the move is a welcome one. “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 the lending rates,” said Sen, terming the cut as a “very good beginning”. P Balendran, vice-president, General Motors India, told ‘Express’ that the interest rate cut comes as a welcome surprise as we were expecting some action in this regard only during next month’s monetary policy. “However, the reduction seems to be too little, too late, as the industry had already been facing a long and protracted slowdown for the past two years. Moreover, we were expecting a reduction of at least 50 bps to ensure some uptick in consumer sentiment,” he said.

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