The over Rs 3 petrol price hike yesterday and the imminent interest rate hike in today’s RBI policy spells bad times for the auto industry. Pawan Goenka, President-Automotive Biz, Mahindra & Mahindra, says the moves would certainly have a negative impact on the auto industry.
Pawan Goenka, President of the Automotive & Farm Equipment sectors at Mahindra & Mahindra. Reuters
Any rate hike is not good for the industry, he said. It is detrimental, at least psychologically but sometimes it is unavoidable, he added. Talking about the two actions coming so close to one another, Goenka said it was a double whammy – price hike on one day and rate hike the next day. The auto industry is going through a downtrend, there is a degrowth in passenger vehicle segment and the rate hike will further slow it down, he said.
Goenka, however, was hopeful that the festive season would bring some relief to auto sales.
Hear him talk to Shereen Bhan of CNBC TV18
Watch video ….