Another hike of the petrol price is here which gets implemented from midnight today. The increase of Rs.3.14 has raised concerns for the auto manufacturers who wary of the auto sales figures to reduce in the next quarter.
Most of the auto manufacturers have quoted that its not a good news for the auto industry in any manner. Any hike in the petrol prices always affects the sales figures which have not been that promising in the past few months either. However its an inevitable change that will always come.
A double problem may arise with the interest rates hiked further by another 25 bps. Auto experts have expressed that it would be a bad news resulting in sales dropping. The industry as a whole has been on the slowdown for months now and this will bring more hiccups for the performance in the last quarter. With the festival season up ahead it is expected to by a damped one for the auto manufacturers in case the interest rates are hiked.
It is very much expected for a rise in the interest rates which would further be passed on to the customer which will certainly impact the sales in a negative manner. Many auto manufacturers were looking at the festive season to bring the momentum back in the sales figure.
Bell the Bull says: Rise in petrol prices and a hike in Interest Rates adding to the woes of the sales within the Auto industry