Mumbai: Even as auto sales in India are recovering month on month since January, helped by softer interest rates, excise duty cut and improving consumer sentiments, interest rates will firm up in the forthcoming months, said a senior HDFC Bank Ltd official on the sidelines of Federation of Automobiles Dealer Association’s meet in New Delhi.
“With the liquidity drying up, one can expect interest rates to go up across all the vehicle categories, Ashok Khanna, executuive vice-president and business head for auto loans at HDFC Bank told Mint. Without quantifying the increase, Khanna said one can expect the spike by December. In India, at least 90% of the trucks and buses and at least 70% of the new cars are bought on credit. HDFC is the largest financer for car loans in the country.