State Bank of India and other lenders will charge borrowers more for auto loans. GE Money, the consumer finance division of General Electric Co., stopped advancing new loans for purchasing motorcycles and scooters as it wants to concentrate resources on high growth and high profitability businesses in India. And the monsoon months (June to September) slow two-wheeler sales.
So:
1. Hero Honda Motors Ltd lowered output this month.
2. Bajaj Auto Ltd. will reduce production by as much as 10 percent to reduce stocks at dealerships
3. TVS, which makes about 55,000 motorcycles a month, has cut motorcycle production by as much 5,000 units a month.
So is it a sign of over investment that:
1. Hero Honda and its affiliates are spending 22 billion rupees to build two new factories, in addition to the existing two, near New Delhi?
2. Bajaj started a new factory in April in the northern state of Uttarakhand?
3. TVS opened a facility in the northern Himachal Pradesh state?
[Click here for full story at: BLOOMBERG.COM]
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