High interest rates will impact auto sector: Maruti

High interest rates will impact auto sector: Maruti
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First Published: Mon, May 07 2007. 12 22 PM IST
Updated: Mon, May 07 2007. 12 22 PM IST
Reuters
New Delhi: Maruti Udyog Ltd will offer incentives to dealers and customers to counter the impact on demand of higher interest rates, Managing Director Jagdish Khattar said on 7 May.
Maruti, reported a 17% annual rise in sales in April, but several automobile firms, especially motorcycle manufacturers have reported a fall as interest rates on loans have risen.
“It has already started impacting the sector, but we have to take some counter measures and be be more aggressive in our sales pitch, reaching out to our target audience with a host of value add servives.
We will give more incentives to dealers and customers and ensure better after sales servide, things which any car buyer automatically seeks” Khattar told Reuters on the sidelines of a news conference.
Maruti, which has nearly about half of the passenger car market in India, last month reported a better-than-expected 24% rise in net profit for the March quarter.
Shares of the company, which is launching a new model were up 1.4% at Rs818 in a market that was up 0.6% on the early hours of trading in Mumbai on 7May.
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First Published: Mon, May 07 2007. 12 22 PM IST
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