With the annual monetary budget plan just around the corner, the expectations and issues of the car industry have as soon as again risen to a brand-new height. Its a no surprise that the growth in the car sector has actually not been up to the mark, regardless of numerous attempts by both manufacturers and government.
In current times, the general growth of India has actually become contingent on the automobile sector by a significant quantity, offered the fact that our country is on its method of becoming a major hub for exports of vehicles to different nations throughout the worldaround the world. Numerous makers such as General Motors, Renault-Nissan, Hyundai, Bajaj and Honda have currently reinforced their base in exports and have high hopes from the current governments lsquo; Make in India campaign.
But to keep the momentum in a stability with the domestic market, similar sort of strong measures needhave to be taken in order to push the sales in all type of sections – be it vehicles, two-wheelers or industrial vehicles. While the decrease in excise responsibility and measures for promoting the hybrid and electrical vehicles are the crucial expectations for the time being, the most important measure which requireshas to be the talk of the hour is a substantial decrease in interest rates for automobile loans.
Factor? Almost 8 out of 10 vehicles in India are offered on the basis of finance from banks and numerous finance organizations. Keeping this fact in mind, there is a needa have to revise the interest rates for automobile loans, as it will indirectly lower the total expense of loans too. This move will certainly motivate those people to cement their choice, who are shying off purchasing their dream set of wheels due to the disparity in economy.
And theres more to the story – not just a reduce in interest rates of automobile loans will rekindle the much-needed stimulate in vehicle market, but likewise will certainly bring a significant boom in the nations overall GDP too. According to some forecasts, the auto industry has the possible to contribute majorly in the total growth of Indias GDP approximately 3.6 trillion USD by FY 2016-17.
Indeed, the reforms to be brought away in this direction are not cakewalks. Thinking about the pluses and minuses of every element relevant to the matter, a great deal of homework and thought processes have to be accomplished on the table. The phase is setting up slowly, lets await the final uplift of curtains!