Auto companies tighten to overcome car market slowdown

The automobile industry, which has been reeling under the biggest recession of the last two decades, is now looking forward to the festive season. Special efforts are being made by automobile car companies and car loan financial institutions to fight the recession. SBI, the bank that disbursed the highest number of car loans in this regard, announced on Tuesday that it would not charge any processing fees on car loans during the festive season. Also, the bank has also announced a car loan at an annual rate of 8.70 per cent. 

On the other hand, Maruti Suzuki, which has a market share of around 50 per cent in the Indian car market, has launched a new after-sales service scheme to increase the sales of diesel cars. Under this, new customers of diesel cars of Desire, S-Cross, Swift, Grand Vitara models will be given a warranty of five years or one lakh km. Maruti Suzuki is also going to launch its much awaited MPV XL-6 this month.

Recently Hyundai launched its Grand i10 Neos, Maruti launched its XL6 and BMW its 3 Series. This time, on the question of festive season expectation, SS Kim, MD and CEO of Hyundai Motor India, says that if the government cuts the rate of GST, then surely the market downturn can be overcome this year. He said that this festive season is very important not only for Hyundai but also for other car companies. 

There is a need for concerted efforts in the current situation. At the same time, Kim also instructed the Indian government that there may be a second preference for the government here, but in other countries, automobile is given great importance because it is very important for employment and general economy.

SBI has said that the new rate of car loan will be 8.70 percent. This loan will be with the guarantee that the loan rate will not be increased further. Also, customers who apply for online loans from the bank will be given an additional 25 basis points in the interest rate, ie 0.25 percent discount. The salaried class will be able to get a loan of 90 percent of the on road price of the car. 

The bank has also implemented a scheme for giving personal loans up to Rs 20 lakh at 10.75 per cent interest. For home loan customers, the bank has also announced a reduction of 0.15 percent in the interest rate from September 1. The bank has reduced home loan rate by 0.35 per cent since April 2019. At present, State Bank is providing home loans at an interest rate linked to repo rate at 8.05% per annum.