Interest rates deflate bikes on expressway
KOLKATA: Tightening of the monetary policy over the past several months has taken a toll on passenger vehicle and two-wheeler sales growth. Potential buyers appear to be holding back purchase decisions amid concerns over inflation coupled with the steep rise in interest rates. While the two-wheeler segment has witnessed a 6% slide in sales in April 2007 compared to the previous corresponding period, the passenger vehicle segment reported lower-than-expected growth. Automobile makers now expect the lacklustre spell to continue for several months.
KOLKATA: Tightening of the monetary policy over the past several months has taken a toll on passenger vehicle and two-wheeler sales growth. Potential buyers appear to be holding back purchase decisions amid concerns over inflation coupled with the steep rise in interest rates. While the two-wheeler segment has witnessed a 6% slide in sales in April 2007 compared to the previous corresponding period, the passenger vehicle segment reported lower-than-expected growth. Automobile makers now expect the lacklustre spell to continue for several months.
Under normal circumstances, nearly 85% of new cars are bought using financing options. Following the rise in interest rates, this ratio has fallen to 70-75%. In case of two-wheelers, the ratio now stands at 50% compared to 60% prior to January 2007. Auto loans are now available at around 13.5% while banks charge 21-23% for two-wheeler loans. Pre-January 2007, both auto and two-wheeler loans were available at an average 300 basis points below current levels.
Not surprisingly, the Society of Indian Automobile Manufacturers (SIAM) fears if the tight monetary policy continues for a longer span, the passenger vehicle space could see only 12-15% growth in 2007-08 against 21% scaled in 2006-07. But for the two-wheeler segment, SIAM has also projected an annual growth of 10-to-12%, which is nearly along the lines of the 11.4% levels scaled in the previous fiscal. Hero Honda Motors vice president (marketing & sales) Anil Dua told ET: “The two-wheeler segment has witnessed a slowdown over the past few months. The deceleration may have been due to the uncertainty prevailing on account of rising interest rates, and consequently customers postponing their purchases.”
It may be recalled that both the two-wheeler and passenger vehicle segments were buzzing with high sales volumes till the third quarter of 2006-07. The lacklustre mood held sway from January onwards, thanks to multiple rises in interest rates. Since then, the interest rate on auto-loans have risen by as much as three percentage points. Incidentally, during April 2007, two-wheeler sales shrunk by 6% to 5.70 lakh units compared to 6.06 lakh units in April 2006. While in the passenger vehicle segment, some 1.05 lakh units have been sold against 94,771 units in April 2006.
“There's a combination of factors impacting business. Rise in interest rate is just one of them. Consumers are also deferring purchase decisions as a few car makers have temporarily deferred the launch of new models to avoid the negative spell in sales,” HDFC Bank senior vice president for auto finance Rajan Pental said.
The passenger vehicle segment, which includes passenger cars, utility vehicles and multi-purpose vehicles, has witnessed a mere 11.8% growth in sales in April 2007 compared to the corresponding period in 2006. “Although the medium-term outlook for the industry is positive, the segment is expected to grow by just about 10% to 12% during this fiscal.
The industry expects to achieve sales of 1.5-1.6 million units in 2007-08,” said P Balendran, vice president, General Motors India. Auto dealers are also saddled with huge inventories at warehouses in the prevailing scenario. Stock correction is also a major reason for low-offtake at manufacturer level, SIAM pointed out. To buck the sluggish trend, a clutch of leading auto makers including Hyundai Motor India and General Motors have come up with special financing packages to lure customers. For instance, Hyundai Motor is offering a option of 8.99% interest rate for its Santro customers. GM has also tied up with a few banks to easing out the interest burden of its customers.
Read more news about (internet advertising India, internet advertising, advertising India, digital advertising India, media advertising India)
For more updates, be socially connected with us onInstagram, LinkedIn, Twitter, Facebook Youtube & Whatsapp
E4M Our strategy is to target younger audiences through Sports: Rajiv Dubey, Dabur
The Head of Media at Dabur India spoke exclusively to exchange4media on the World Cup, associating with Indian Idol, the company’s digital spending and much more
With quirky campaigns, memes and moment marketing, timed with the ongoing World Cup and particularly the India-Pakistan matches, Dabur India has got considerable consumer attention for its popular brands – Red Paste, Cool King Hair Oil, Chyawanprash, Dabur Vita and the recently launched Bae Fresh Gel toothpaste.
The 140-year-old company is going big on key sporting events, World Television Premiere (WTP) movies and reality shows. It is now gearing up to become the title sponsor of popular talent show ‘Indian Idol’ on Sony TV for the first time, shared Rajiv Dubey, who leads the media strategy at Dabur.
Read more news about (internet advertising India, internet advertising, advertising India, digital advertising India, media advertising India)
For more updates, be socially connected with us onInstagram, LinkedIn, Twitter, Facebook Youtube & Whatsapp
Swapan Seth's new book 'COOL' is out
The book is a reflection of the author's 'eclectic taste across categories'
Advertising professional and art collector Swapan Seth has announced the launch of his new book COOL. The book is described as "a ready reckoner to the hip and the happening, of the known and the very unknown."
The book is a reflection of the author's "eclectic taste across categories: from boltholes to exotic hideaways."
COOL has been published by Simon & Schuster India and is available on Amazon.
Seth is an ad veteran with a long and illustrious career in the industry. He became the youngest-ever Creative Director at Clarion at age 24. He was VP at 26 at Trikaya Grey. Two years later, he started his agency Equus.
He writes for publications such as The Economic Times, Hindustan Times and India Today. This is his second book and he has previously published THIS IS ALL I HAVE TO SAY.
Read more news about (internet advertising India, internet advertising, advertising India, digital advertising India, media advertising India)
For more updates, be socially connected with us onInstagram, LinkedIn, Twitter, Facebook Youtube & Whatsapp
Disney Star signs 9 sponsors for Asia Cup PAK
Charged by Thums Up, Nerolac Paint+, Amazon Pay, Jindal Panther, My11Circle, MRF, Samsung Galaxy Z Flip5, Wild Stone and Thums Up come on board
e4m Staff Disney Star has signed nine broadcast and digital streaming sponsors for the upcoming Asia Cup.
Charged by Thums Up, Nerolac Paint+, Amazon Pay, Jindal Panther, My11Circle, MRF, Samsung Galaxy Z Flip5, Wild Stone and Thums Up have come on board for the upcoming tournament.
As reported earlier by exchange4media, Disney Star has sought Rs 26 crore for the co-presenting sponsorship on TV and Rs 30 crore for Disney+ Hotstar.
According to industry sources, the associate sponsorship on Star Sports has been priced at Rs 19.66 crore, whereas for the ‘powered by’ sponsorship on Disney+ Hotstar, the broadcaster is seeking Rs 18 crore.
As per the information available with exchange4media, Disney+ Hotstar has three sponsorship tiers-- co-presenting (Rs 30 crore), powered by (Rs 18 crore) and associate sponsorship (Rs 12 crore). The broadcaster is offering an estimated reach of 120-140 million for co-presenting sponsors, 90-100 million for powered by and 60-70 million for associate sponsorship.
A spot buy for 10 seconds has been priced at Rs 25 lakh for the India vs Pakistan matches, while for the non-India matches, the ad rate for 10 second is Rs 2.3 lakh. The India matches plus the final for ODIs has been priced at Rs 17 lakh per 10 seconds.
Asia Cup is scheduled to be held from 30 August, 2023, to September 17, 2023.
Read more news about (internet advertising India, internet advertising, advertising India, digital advertising India, media advertising India)
For more updates, be socially connected with us onInstagram, LinkedIn, Twitter, Facebook Youtube & Whatsapp
Sorted 360 wins creative & social media mandate of Reliance Mall
The agency will manage offline and online campaigns for Reliance Mall
Sorted 360, an integrated creative and social media agency, has won the mandate to providing brand solutions for Reliance Malls across India.
“Sorted 360 is set to enhance Reliance Malls' market presence with their unparalleled creative prowess and strategic thinking,” read a press release.
“Sorted 360's commitment to pushing the boundaries of creative communication aligns perfectly with Reliance Malls' ethos. With a pan-India presence spanning across 19 cities and growing, Reliance Malls has consistently captivated customers by offering an array of Reliance brands and third-party fashion & lifestyle brands. The mall has established an unparalleled connection with its patrons through superior quality, a remarkable value proposition, and an unmatched shopping experience,” it read further.
"We are thrilled to welcome Sorted 360 as our trusted partner in advancing our brand presence across the nation," said the Head of Marketing at Relaice Malls. "Their proven expertise in retail, shopping center management, and innovative creative strategies make them the perfect fit for our vision."
"Partnering with Reliance Malls is a testament to our commitment to shaping extraordinary brand experiences," remarked Prerana Anatharam, Co-founder of Sorted 360. "We are excited to leverage our strategic and creative acumen to further elevate Reliance Malls as the epitome of convenience, choice, and excellence."
Read more news about (internet advertising India, internet advertising, advertising India, digital advertising India, media advertising India)
For more updates, be socially connected with us onInstagram, LinkedIn, Twitter, Facebook Youtube & Whatsapp
test
test
test
Read more news about (internet advertising India, internet advertising, advertising India, digital advertising India, media advertising India)
For more updates, be socially connected with us onInstagram, LinkedIn, Twitter, Facebook Youtube & Whatsapp
test
test
test
Read more news about (internet advertising India, internet advertising, advertising India, digital advertising India, media advertising India)
For more updates, be socially connected with us onInstagram, LinkedIn, Twitter, Facebook Youtube & Whatsapp
KlugKlug onboards Hemang Mehta as Country Manager for Indias
Mehta was most recently Head of Agency Relationships at Network 18 Media & Investments
KlugKlug has appointed Hemang Mehta as its Country Manager for India.
Mehta will play a pivotal role in driving KlugKlug's growth and expansion within the Indian market and be responsible for Sales & GTM Strategy
Prior to that, he has also represented organisations like Exponential (now VDX.tv), India Today Digital and Rediff.com. His expertise spans various domains including digital media sales, mobile marketing, media planning, and buying, social media marketing, and more.
Hemang Mehta expressed his enthusiasm about joining KlugKlug, saying, "I am thrilled to be a part of KlugKlug, a forward-thinking platform that is reshaping the influencer marketing landscape. As much as I look forward to collaborating with the exuberant team at KlugKlug, I am super excited to interact with the brands to deliver powerful data-backed Influencer solutions that will guarantee business outcomes."
Commenting on the appointment, Kalyan Kumar, Co-Founder and CEO of KlugKlug, stated, "We are excited to welcome Hemang Mehta to our team as the Country Manager for India. His extensive experience in digital media sales and marketing will be instrumental in driving our efforts to provide influencer marketing solutions to our clients. We believe Hemang's leadership will be key in scaling our operations and expanding our reach within the Indian market."
Read more news about (internet advertising India, internet advertising, advertising India, digital advertising India, media advertising India)
For more updates, be socially connected with us onInstagram, LinkedIn, Twitter, Facebook Youtube & Whatsapp








Share