Times sure are changing in the Indian automotive industry. First there were a slew of new car launches which put cars back in minds of consumers, and then came the low interest rates on car loans. Recently State Bank of India (SBI) slashed interest rates to a mere 8 percent. At the same time other banks continue to peddle car loans at around 10.5 percent to 12 percent.
As soon as SBI announced the rates, other banks too felt the heat. Since nobody wants to be left behind in the race for a good business, more banks are planning to bring down interest rates on their own. This means that the Indian car industry will be back in good business after the slowdown.
Indian car manufacturers have been whining about high interest rates on car loans for the last couple of years. They were particularly affected during the economic slowdown, when interest rates continued to remain high and cars sales remained low. Car buyers in India preferred to stay away from the showroom for most part of 2008 and early 2009. Moreover the deficit in Tata Nano bookings was also attributed to this factor.
But come July, things seem to be changing for the better. There is new enthusiasm in the car industry. Car loans are falling and car sales are expected to go up. Probably some of them would include Honda Motors owing to Jazz, Maruti Suzuki, Hyundai and General Motors.
It is well known that at least 75 percent of the car buyers in India depend on car financing. If interest rates on car loans are going to be low, the consumer base will certainly increase and thereby deliver good benefits to car companies and the banks alike.
This is fact that most of person depand on the auto loan. So we should try to get the used auto. Through which we can save our money.
With less interest to pay, people will ceratinly opt in investing on a new car. Lots of new car like Honda Jazz, Grande Punto, Jaguar and the Land Rover have been launched recently.The car market is really dong ood business as we have more people buying cars with the falling interest rates.