Disappointed with the RBI decision of not reducing policy rates, carmakers and real estate players today said the sectors, which are already reeling under a slump, will continue to suffer due to the high interest rate regime.
"It (rates remaining unchanged) is a disappointment for the auto industry. For the car industry, it is very important that the interest rates come down as 70 per cent of sales are financed," Maruti Suzuki India Managing Executive Officer (Sales and Marketing) Mayank Pareek said.
The sluggish demand will continue as sentiments are still low, he added.
Expressing similar views, Hyundai Motor India Ltd Director (Marketing and Sales) Arvind Saxena said: "With the GDP growth rate coming down, industry was expecting RBI to ease interest rates, in that sense it is disappointing."
The passenger car industry is under a lot of pressure on account of high fuel costs, and had the RBI taken some measures
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