Car makers optimistic, expect revival | autos | Hindustan Times
Today in New Delhi, India
Nov 20, 2017-Monday
-°C
New Delhi
  • Humidity
    -
  • Wind
    -

Car makers optimistic, expect revival

Disappointing IIP data where the transport equipment and parts saw a fall of 6.1 per cent in October does not seem to disappoint the car manufacturers as they express confidence that the recent 4 per cent excise reduction on cars will spur a revival soon.

autos Updated: Dec 12, 2008 20:44 IST
HT Correspondent

Disappointing IIP data where the transport equipment and parts saw a fall of 6.1 per cent in October does not seem to disappoint the car manufacturers as they express confidence that the recent 4 per cent excise reduction on cars will spur a revival soon.

Maruti Suzuki chairman RC Bhargava told Hindustan Times that there have been downturns in the past and this particular decline "should not be too worrying and the excise cut is bound to have a positive impact on demand."

Maruti's optimism however, came with a note of caution as lack of retail finance continues to undermine demand.

Automobile sales have been on a decline in the month of October and November. In October, overall domestic automobile sales were down by 14.4 per cent, while car sales dropped by 6.6 per cent. Domestic sales dipped by another 18 per cent while car sales slid by 19.4 per cent in November.

High interest rates have been the major cause of worry for the industry and continues to remain so. However, with Reserve Bank of India lowering policy rates, the industry expects better times ahead.