Live
- Construction of over 1,000 bridges underway in Assam: CM Sarma
- Telangana IAS Officers wives association meets president Droupadi Murmu
- Nara Devaansh Sets World Record with Checkmate Marathon
- India set to become developed nation by 2047: Haryana CM
- Allu Arjun’s house attacked by protesters demanding compensation for the stampede victim
- Several Gulf countries impose visa ban on Pakistanis over their involvement in crime, fraud and begging
- Public outrage in Jharkhand's Giridih over murder, police station gheraoed
- Santosh Trophy: Meghalaya edge Goa 1-0 to secure QF berth
- Army's swift action prevented Kolkata fire from spreading: Defence Ministry
- State Police tried to murder Ravi- Union minister
Rate cut, festive season to better vehicle demand: SIAM
Auto industry body SIAM on Friday welcomed the RBI's lending rate cut and said the availability of cheaper finance along with the onset of festive season will help generate better demand for vehicles
New Delhi: Auto industry body SIAM on Friday welcomed the RBI's lending rate cut and said the availability of cheaper finance along with the onset of festive season will help generate better demand for vehicles.
The remarks came as the central bank slashed its benchmark lending rate by 0.25 percentage points to 5.15 per cent. "The reduction of repo rate by 25 basis points is a welcome move indeed by RBI.
We hope that the banks would fully pass on the repo rate cut benefit to consumers in the form of lower lending rates," Society of Indian Automobile Manufacturers (SIAM) President Rajan Wadhera said in a statement.
The onset of festive season along with availability of cheaper finance should induce higher demand for vehicles, he added. The automotive sector has been going through a prolonged slowdown with sales plummeting to all-time low in almost two decades in August.
The slashing of repo rate will push consumption during the ongoing festive season. This will help reduce borrowing costs for home and auto loans, which are now directly linked to this benchmark.
This is the fifth straight cut in rates by the Reserve Bank in as many policy reviews in 2019 and takes the total quantum of reductions to 1.35 per cent.
