After the announcement from India’s central bank (Reserve Bank of India) – the 25 bps repo rate cut to 6% potentially leading to lower EMIs on loans; Renault India CEO and MD has expressed a positive sentiment among car buyers in India. Read the full statement below:
Mr. Venkatram Mamillapalle, Country CEO & MD, Renault India,
“The RBI’s second consecutive rate cut, reducing the repo rate by 25 bps to 6%, reflects easing inflation and a positive monetary shift. We hope financial institutions will pass on these benefits to borrowers more effectively. This move could significantly impact the automobile sector, especially if lending rates soften further. Lower EMIs can influence buying decisions, particularly in entry-level and mid-size segments. Combined with the Finance Minister’s zero tax announcement up to ₹12 lakh, the current policy landscape could enhance consumer affordability and stimulate demand across urban and rural markets.
We also expect increased traction in the commercial vehicle space. Fleet operators could benefit from lower financing rates, encouraging fleet expansion and investment. Much like housing, where improving affordability is drawing back first-time buyers, we anticipate a similar revival in sentiment among first-time car buyers as the economic environment improves and consumer confidence strengthens,”
said Mr. Venkatram Mamillapalle, Country CEO & MD, Renault India.
