Maruti Shuts Down Petrol Car Production For 3 Days

Maruti Suzuki has shut down the petrol car production for 3 days.
The company is under stress due to rising inventory levels of Petrol cars.
With the widening gap in the petrol and diesel prices, more and more customers are shifting their preference towards diesel vehicle.
Currently Maruti procure diesel engines from Fiat and it is asking Fiat to supply more engines than contracted by Maruti.
Maruti should be looking to enhance the export of the petrol cars to ensure that the investment done at the petrol engine plant is not lost.

There is pressure across the automobile manufacturers due to rising fuel price and also high level of interest rates.
With a slowdown in the economy it is expected that RBI may decrease the interest rates, which may be breather for auto firms.

Firms like mahindra which have high proportion of diesel vehicles have done well and are expected to do well as compared to firms like Maruti.

Team Money Plant
Disclosure: Some of our clients may have position in Maruti Stocks

State Bank of India - Tata Motors Low Margin Car Loan Scheme

SBI has come up with car loan offer for Tata Motors cars. The cars covered under this scheme are Tata Nano, Tata Indica, Tata Indica Vista, Tata Indigo, Tata Indigo Manza, Tata Sumo Gold, Tata Sump Grande,  Tata Aria,  Tata Safari and Tata Venture cars.

Salient features of this scheme are

• No Advance EMI.
• Longest  repayment tenure (7 years).
• Lowest interest rates ( there are further concessions for Corporate Salary  Package accounts).
• Lowest EMI.
• Loan amount: 90% of 'On Road Price' of car (includes registration, insurance and cost of   accessories worth Rs 25000).
• Interest Calculated on Daily Reducing  Balance.
• Flexibility of payment of EMI anytime during the month.
• No pre-payment penalty.
• Free Accident insurance. Optional SBI Life cover.
• Overdraft facility available
• Processing fee of  0.51% of loan amount
• Interest rate of 11.25% pa

This offer is lucrative and beats any car loan scheme. 

Source: https://www.sbi.co.in

Disclosure: Money Plant and its clients own stocks of SBI and Tata Motors