Vehicle makers rev up financing in risky turn

Vehicle makers are stepping up lending to consumers to boost flagging demand for motorbikes, cars and trucks, but the rush to offer funding poses risks for firms in an environment of rising interest rates.

“Offering finance to the ‘right’ type of customer can be difficult even in markets where credit histories are well established, and is likely to be a bigger problem in India,” said Ian Fletcher, an analyst at research firm Global Insight. “If Indian automakers can make it work it will certainly be a good move and could even prove to be profitable. Read more
Courtesy: www.indiacar.net

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