Auto sales are zooming. As a result, the top eight financiers disbursed loans worth a record Rs 3,400 crores in September, 25% more than the average disbursements during the previous four months.
A combination of low interest rates, easier availability of finance and a spate of new launches by car companies seems to have turned the tide after consumer sentiment was badly effected following the financial crisis in the US and the resultant slowdown in India's economy.
While these figures do suggest, along with other indicators, that the economy is poised to accelerate, perhaps one factor that has contributed to this unusual spurt in auto sales is the Pay Commission effect. How much of it is one time, thanks to hefty arrears, and recurring, due to the sharp rise in salaries, will be only known in the next few months.
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4 years ago
4 comments:
Partly due to rise in salaries- but partly seasonal- due to the festivals during this quarter.
Indeed.
Auto sales in India is always higher around Sep-Nov because of the festive season.
Always. But this time the difference is a huge 25%.
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