Companies are already concerned about the “negatives” that are building up at a time when vehicle prices have gone up due to higher input costs, hitting affordability and sentiments. Maruti and Hyundai both spoke of decline in footfalls. And with the central bank
RBI expected to tighten key interest rates further in its monetary policy review on Tuesday, the industry remains nervous.
“Higher prices of fuel and rising interest rates are already creating a pressure in the market. Footfalls in showrooms have come under pressure,” Maruti’s managing executive officer (sales and marketing) Mayank Pareek said. Hyundai’s marketing and sales director Arvind Saxena said the bearish trend was likely to continue. “The rising interest rates have led to reduced enquires and the conversion rate too has slowed down,” Saxena said.