RBI rate cut will have positive impact on auto sector: SIAM

The Society of Indian Automobile Manufacturers (SIAM) has welcomed the Reserve Bank of India's (RBI) decision to reduce interest rates, predicting a positive impact on the auto sector. The rate cut, which includes a 25 basis point reduction in the repo rate, is expected to lower borrowing costs and boost consumer sentiment. SIAM President Mr. Shailesh Chandra, the President of Tata Passenger Electric Vehicles, stated that the move will enhance vehicle accessibility by reducing financing costs. The rate reduction is seen as a timely measure amid easing inflationary pressures, which have been a concern in the auto sector since 2022. The industry anticipates this move will stimulate demand and support the sector's recovery.