New Delhi: Auto makers welcomed Reserve Bank of India’s move to cut key policy rate by 25 basis points but said it would translate into actual gains for vehicle buyers only when banks pass on the benefits.
Maruti Suzuki India Executive Director (Marketing & Sales) R S Kalsi, said, “We are waiting and watching if the banks pass on the benefits of the rate cut to consumers. Earlier also when the RBI cut rates they didn’t pass it on.” He further said: “Now that there’s a total of 50 bps cut, they’ll be under pressure to pass it on. We hope they do, as it would boost demand in auto sector.”
Bajaj Auto President (Business Development & Assurance) S Ravikumar said: “In all the rate cuts, banks can’t keep swallowing benefits and keep cushioning their profits. They have to pass it on to consumers.” Ravikumar said: “It will help boost overall sentiments of the economy, which is very important for the auto sector, although the direct benefit of the cut will only be incremental on EMIs.”
