Tuesday, August 02, 2011
By Pranjal Gera
RBI rates hike spooks markets
Auto and Banking are expectedly among the hardest hit by the RBI's decision on hiking interest rates Sanjeev Zarbade, Vice President of Kotak Securities said that the hiking of interest rate has given a negative surprise to the sensitive sectors like banks, autos and real estate.
Senior Vice-President (Sales and Marketing) Jnaneswar Sen feels that auto loans within the coming time are going to accelerate which is going to impact them for sure. According to him the growth has already dropped down. Eventhough he says the growth is not going to be the problem as the growth will always increase but the growth rate will be slow.
General Motors India Vice- President P Balendran believes that the RBI has other priorities. This hike is going to strike the market and definitely make an impact. According to him he didn't expect the rates to be changed at this moment.
Reports say that the growth has been the slowest in a long time almost 27 months to be definite recorded this June. The growth was only 1.62 percent. The reasons obviously being the hike and also the 13 day strike that took place at the Maruti Suzuki production plant at Manesar.
This June's car sales have been 1, 43,370 units compared to the sale of 1,41,086 units which was recorded last year in the same month.
Supposedly this is the slowest growth since the march of 2009 where the growth was 1.16 percent.
Some of the popular hatchback models in the Indian auto market are Chevrolet Beat Diesel, Toyota Etios Liva, Ford Figo, Maruti Swift, Hyundai i10, Chevrolet Beat and Volkswagen Polo. Apart from these popular models, cars going to hit the Indian roads this year are Force One, Maruti Cervo and Honda Brio.