Auto Industry hails RBI rate cut, sees boost in affordability

The Automobile industry has supported the Reserve Bank of India's rate-cut decision, and they believe that this decision will add positive sentiment among consumers in the market.

- TBG NETWORK

On Friday, the RBI reduced the repo rate by 50 basis points to 5.5 per cent. The central bank also cut the Cash Reserve Ratio (CRR) by 100 basis points to 3 per cent. The CRR cut will be implemented starting September 6, in four tranches of 25 basis points each in four fortnights. The CRR cut alone will infuse a liquidity of Rs 2.5 lakh crore in the Indian banking system.

Shailesh Chandra, President, SIAM and Managing Director of Tata Passenger Vehicles Ltd & Tata Passenger Electric Mobility Ltd., welcomed the RBI's decision of a 50 bps repo rate cut.

He said, "Such a reduction in repo rates would have a positive impact on the Auto sector since it would lead to increased accessibility to finance at reduced costs, thereby creating a positive sentiment amongst the consumers in the market."