Car manufacturers are expecting a revision in cash reserve ratio that would again leap the interest on car loan offered by private banks and other financial institutions. The issue may get cleared after the Reserve Bank of India reviews its monetary policy at the end of this month.
With these expectations, car manufacturers are pushing car sales. At present, the car loan interest rate is 15% that gives a monthly installment of Rs 2,350 per lakh. If by this month end, the interest rate increases, then the loan interest will nearly touch 16% resulting in a monthly installment of nearly Rs 2,395 per lakh for the same tenure.
In order to cope up with the expected rise in interest rates, car manufacturers have put in their heads and hearts to wrap up the deal, remold marketing strategies, and compel waning customers.
They are offering attractive discounts and schemes but no freebies to lure customers. They are simply trying to strengthen their internal channels and extend sales with existing customers.
Labels: Car-Loans, Car-Manufacturers, Finance
