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"The 25 basis points cut is nothing, we need at least 100 basis points reduction," Society of Indian Automobile Manufacturers Deputy Director General Sugato Sen told PTI in New Delhi.
Although the RBI's move to slash the short-term lending rate or repo rate twice by 0.25 percentage points each in two months is a positive step, but it is unlikely to revive the sales immediately, he added.
"It is a too slow a pace. . . We are reaching a desperate step, we need policy support," Sen said.
Even as RBI on Tuesday cut the repo rate to spur growth and revive investment, it sounded a note of caution on further easing of rates on account of high food inflation and current account deficit.
As per SIAM data, the total sales of vehicles across categories registered a decline of 5.45 per cent at 14,51,278 units in February 2013 as against 15,34,910 units in the same month of 2012.
Reacting to RBI's rate cut proposal, General Motors India Vice President P Balendran said: "This is a marginal decline.
“We were expecting at least 50
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