It is reported that the sale of small cars has declined by 25% and that of luxury cars has declined by an astonishing 50%.
As people in India mostly buy cars on loan, and the sudden crash in stock market has narrowed down the possibility of getting car loans as banks have become more stringent. The interest rates have also gone up by 6% from 11% to 17%.
It is also reported that the decline in small car sales has declined due to rise in petrol prices. Besides this, the ongoing liquidity crisis and existing high interest rates dampened the demand and kept a lot of customers away from the market.
Source: Infibeam.com News
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