PICS: Auto sector drives past bad phase, hopes for better

RBI DECISION HURTS: Although the festival season did bring some cheer in terms of sale and September, recorded the highest level during the fiscal, RBI's decision to hike short term lending rate impacted interest rates on car and automobile loans thus adversely affecting the sales further. With slowing sales, manufacturers were left with no option but to curtail their production capacities and undertake unplanned temporary plant closures.