InvestorQ : What auto companies should do to boost their sales?
Dia Deshpande made post

What auto companies should do to boost their sales?

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Ria Jain answered.
3 months ago

This year most of the automobile companies have witnessed major hit in their sales because of lockdown due to the coronavirus pandemic. Now as soon as the economy opens up, the car manufacturers would want to increase demand for their products. However, due to less liquidity in the market, they will have to find ways that could boost sales and make it easier for the customers to buy these products. Recently, it has been in the news that Maruti Suzuki is going to tie up with HDFC and ICICI banks to extend easy credit facilities to the customers by way of introducing new car loan schemes. Therefore, car manufacturing companies should try to reduce the EMI burden on the borrowers initially, and here are the few things that lenders could attempt:

Balloon repayment: One will have to pay a portion of the principal amount at the end of the tenure. This will reduce the burden to pay lesser principal, therefore the burden on EMIs shall be reduced.

Set-up Loan: Car manufacturing companies can opt for a repayment schedule where the monthly repayment of loan increases by a certain percentage every year. This will reduce the burden in the first few years.

Teaser Loan: Under this type of loan, the lender offers a lower rate initially and then a higher rate later. However, we are yet to accept these finance options within the country.

Hybrid scheme: There can also be a mix of two or more of these schemes to provide multiple benefits to the borrowers.

Lenders will have to come up with ways to ease the burden on the consumers to boost sales during the present times.

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KirtankRathod answered.
3 months ago

Ask to open the company but with the less amount of labour, clerk so there will be proper management of the health of labour and employees