Rate hike to hit auto industry
The Reserve Bank of India's rate hike will have sent shivers down the spine of the auto industry. The beleaguered sector has consistently received bad news the past 18 months, and rates going up is expected to be a downer as many prospective buyers will put off their purchase now. Since auto loans will inevitably become more expensive for auto companies, the flip side also holds, and that is the demand for their products hitting a speed breaker.
