Repo rate hike unlikely to curb festive auto sales, but affordability support may cost ₹1,000 crore

The automotive industry expects festive season sales momentum to remain intact despite the recent repo rate increase by the Reserve Bank of India. However, extending financing support to shield buyers from higher EMIs could cost the sector around ₹1,000 crore.

While individual EMI increases may appear modest for personal buyers, the cumulative impact becomes substantial when financing assistance is scaled across millions of vehicles sold during the peak festive period. Balancing growth targets with affordability protection remains a key challenge for the industry.