The Reserve Bank of India (RBI) is considering to have another rate hike, and it may hurt the auto industry by hitting the sales, a top automobile industry official said.
“If there is a hike in policy rates in November, it will have a significant impact on the industry,” Society of Indian Automobile Manufacturers (SIAM) President and Mahindra & Mahindra President, Automotive and Farm Equipment, Pawan Goenka, said.
A few banks have already increased their interest rates on auto loans from hiking their benchmark prime lending rates (BPLRs) and base rates. Last month, RBI had increased its short-term key rates. Goenka, however, did not expect the hikes to impact October sales. But it may reflect on next month’s sales data, he said.
On September sales, he said that the performance was better than targeted with a total sale of 13,29,086-units as against 12,63,293-units in August.
“The performance was better than what we targeted in August,” he said. “So I expect a moderate growth in Q3. However, I was proved wrong in Q2 and I don’t mind being wrong again,” he said.