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      Automobiles to Become Expensive Again

      Payal Pathak

      Payal Pathak

      Indian car market is booming but so are the prices. This year automakers have increased prices at least 4-5 times owing to increase in RBI rates, implementation of new norms or citing rise in input costs as a reason. Once again RBI is planning to hike short term key rates which is likely to affect the auto industry. If there is a hike in policy rates in November, it will have a significant impact on the industry," said Society of Indian Automobile Manufacturers (SIAM) President and Mahindra & Mahindra President--Automotive and Farm Equipment, Pawan Goenka.

      Auto industry has been continuously reporting steady increase in sales and profit margins since past few continuous months. On September sales, the performance had again grown versus August with a total sale of 13,29,086-units as against 12,63,293-units in August. "The performance was better than what we targeted in August," Goenka said.

      The price hike in lending rates is not reflected very clearly yet so far but this is likely to occur next month. Automakers as well as banks are waiting for clear indications from the RBI as of now.