Backed by low interest rates, the auto sector posted a positive performance in the first 10 months of the current fiscal year with the jeep segment achieving highest sales growth of 193 per cent.
Sales of tractors were up 62pc followed by 57.5pc increase in light commercial vehicles (LCVs), cars 48.5pc, two and three-wheelers 34pc, trucks 7.7pc and buses by 5.6pc in 10MFY21.
Low interest rates emerged as one of the main reasons in propelling the auto sector sales — especially cars, LCVs and pickups — and thereby taking up the share of auto financing to 40-60 per cent of total car sales depending on the assemblers. Rising car prices did not cause any serious hit to the buying sentiments of consumers who were more interested in getting the vehicles delivered. Instead, late deliveries of vehicles and looming high premiums on spot sales at the showrooms emerged as pressing concerns among buyers.
Meanwhile, assemblers have not come out with any price relief for the consumers in the last 10 months despite rupee recovery against the dollar from August 2020 till to date.