India | UK | US

Rising interest rates to hit car sales: Hyundai

Bangalore, April 3  Rising interest rates on personal, retail and car loans would affect the uptake of passenger cars during the fiscal 2007-08, a top Hyundai official said here Tuesday.
Posted : Tue, 03 Apr 2007 14:45:00 GMT
By : Indo Asian News Service
Category : India (Business)
News Alerts by Email ( click here )
India Business News | Home
Bangalore, April 3 Rising interest rates on personal, retail and car loans would affect the uptake of passenger cars during the fiscal 2007-08, a top Hyundai official said here Tuesday.

'Interest rates on car loans have gone up by 350 basis points during the last three months. Though the passenger car market will continue to grow in double digits, higher interest rates will slow down sales in short and medium term,' Hyundai Motor India Ltd (HMIL) vice-president (marketing) Arvind Saxena told reporters at the launch of Getz Prime.

As one of the key drivers in boosting passenger car sales, personal and car loans with lower interest rates had helped automobile firms such as Hyundai, Maruti and Tata Motors register impressive growth rates over the last couple of years.

Various fiscal and monetary measures, initiated by the government and the Reserve Bank of India (RBI) to curb inflation rate, has led to a sharp increase in interest rates.

'Though it is too early to quantify the impact, higher interest rates will make it difficult to discerning buyers from going for a car loan in the prevailing scenario. It will be a setback to the Indian automobile industry, as buyers would rather wait for the interest rates to the previous lower levels,' Saxena said.


(c) Indo-Asian News Service

Share/Save/Bookmark

Article : Rising interest rates to hit car sales: Hyundai
Print this article
Email this article

Stay Updated
News gadget on your Google homepage
Subscribe to a news feed in Google Reader


Related News

Indian premier pushes for faster economic reforms
New Delhi - India had weathered the global economic crisis better than most countries and would push financial sector and other reforms to regain a 9 per cent rate of growth, Prime Minister Manmohan Singh said Sunday. Delivering the opening address a...

Two killed, scores injured in labour clashes in Bangladesh - Summary
Dhaka - At least two people were killed and scores others injured in fierce clashes between police and garment workers near the Bangladeshi capital Dhaka on Saturday, police and witnesses said. Police confirmed deaths almost 12 hours after the local ...

Scores injured in clashes over factory lay-offs in Bangladesh
Dhaka - Fierce clashes between police and clothes workers left scores of people injured near the Bangladeshi capital Dhaka on Saturday, police and witnesses said. Unconfirmed reports suggested that at least two workers were killed during the five-hou...

New Nepal-India trade treaty comes into effect
Kathmandu - A new Nepal-India trade treaty came into effect Wednesday aimed at curbing unauthorised trade between the two countries. The treaty was signed by Nepal's Commerce Minister Rajendra Mahato and his Indian counterpart Anand Sharma in the Nep...

India central bank holds interest rates, warns of inflation - Summary
New Delhi - India's central bank announced Tuesday that it would keep key short-term interest rates at their current record lows to support the economic recovery process while trying to ensure price stability. The Reserve Bank of India also retained ...

India's central bank holds interest rates, warns of inflation
New Delhi - India's central bank announced Tuesday that it would keep key short-term interest rates at their current record lows to support the economic recovery process while trying to ensure price stability. The Reserve Bank of India also retained ...

Tata Motors acquires control of Spanish bus maker
New Delhi - India's Tata Motors Ltd Tuesday announced that it had acquired the remaining 79 per cent stake in Spanish bus maker Hispano Carrocera S.A. Tata Motors, which is India's largest automobile company by sales, said it bought the additional st...

Have your Say
Name
Email
Subject
Your Comment

Enter Verification code
 
  

 

 

More India (Business) News click here
Follow The Earth Times
Subscribe to RSS Follow Earth Times on TwitterNews by email
Share/Save/Bookmark

 
 



 
Subscribe to free Earthtimes
News Alerts by Email Click here
For RSS Feeds Click here
or Create your own RSS

Add to Google Toolbar
Breaking News
Press Releases

 


The Earth Times
News Category

© 2009 www.earthtimes.org, The Earth Times, All Rights Reserved | Privacy Policy
Earth Times accept no responsibility or liability either directly or indirectly for views or opinions expressed in articles or comments.