Rate cut, extra liquidity alone can’t drive auto loans. Car buyers must walk into the showrooms
Getty Images
A passenger in Delhi waits at a bus stop adorned with a bank advertisement offering loans.
Synopsis
Auto-loan offtake is on a bumpy ride. The recent repo rate cut, the Budget announcement on bank recapitalisation, and credit guarantee for NBFCs’ pooled assets should help. But first, the overall sentiment for consumption must improve.
"Have you ever heard the sound of disappointment?... Here comes that sinking feeling" When Annie Lennox and David A Stewart of Eurythmics fame belted out another blockbuster in 1985, Maruti 800 was two years into business and the Indian auto industry had just started its roller-coaster ride to become one of the largest automobile markets in the world. But the narrative has changed in the last 34 years. With cars not moving out of the showrooms,
Refer & Earn
Get Unlimited Access to The Economic Times
