A rate hike by the Reserve Bank of India (RBI) could hurt the auto industry by hitting sales, according to a top automobile industry official said.
"If there is a hike in policy rates in November, it will have a significant impact on the industry," Society of Indian Automobile Manufacturers (SIAM) President and Mahindra & Mahindra president--automotive and farm equipment, Pawan Goenka, told reporters in Mumbai today.
A few banks have already increased their interest rates on auto loans in addition to hiking their benchmark prime lending rates (BPLRs) and base rates.
Last month, the apex bank increased its short-term key rates--repo and reverse repo rates. He, however, said he did not expect the hikes to impact sales for October.
He said it may however, reflect on next month's sales data.
He added that the shift to BS III emission norms, from 1 October had been achieved smoothly.