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Cheaper loans in rural areas to lift sales: Hero
Mint Mumbai
|January 24, 2024
Hero MotoCorp to introduce three new e-scooters in 2024-25
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Hero MotoCorp Ltd, India's largest maker of entry-level motorcycles, expects a "dramatic" drop in interest rates on two-wheeler loans offered by non-banking financial companies (NBFCs) in rural regions-typically marred by defaults-to boost demand for two-wheelers in three-four years, its chief executive Niranjan Gupta said on Tuesday.
Gupta said the company is considering adding connected features, which it offers in motorcycles in its premium portfolio, to its entry-level motorcycles, which can make repossessions and traceability easier for financiers.
This in turn could lead to lower interest rates and mitigate the impact of the double whammy of high inflation and high-interest rates, which has crimped sales in the rural India. Hero MotoCorp also sees green shoots of revival in rural demand.
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