NEW DELHI: As per industry players, RBI's decision on rate cut is minute to for a major development on demand for automobiles, nevertheless, it is definitely a move towards the right direction.
Maruti Suzuki India (MSI), country's leading car maker company called the action a move in the right direction.
Mayank Pareek, chief operating officer in marketing and sales, MSI expressed, ''but it is too less for now. This step alone may not bring in any big impact, at least in the automobile market.''
RBI's move is widely regarded to lead to moderation in home, auto, corporate loans and revive investments.
Pawan Goenka, president of automotive and farm equipment sectors, Mahindra & Mahindra stated, ''today's combo of a repo as well as CRR cut is a welcome announcement and hopefully, will help revive investments in the core sectors, which the economy needs. Coupled with the recent policy announcement by the government, I see this as a good beginning.''
He further expressed that the economic growth has conspicuously declined and the slowdown in manufacturing over the past few months has been a matter of concern.
P Balendran, vice president, General Motors India maintained that the auto industry had been anticipating a repo rate cut of at least 50 basis points to moderate the borrowing cost.
Balendran expressed, "I don't think a reduction of 25 basis points will immediately support the revival of demand. Since the overall economy continues to remain under pressure, the small cut is not likely to make any difference as far as demand scenario is concerned.''
The automobile players are not anticipating the sector to turn around before the Budget and he highlighted, "I hope more rate cuts will happen progressively in the coming months.''