Inflation Assignment

The automobile industry in India saw strong growth of 15-18% over the last five years but growth has recently dipped to single digits due to high inflation above 12%. Inflation has negatively impacted both demand and costs for the industry. To combat inflation, the government and industry have implemented several policies. The central bank raised interest rates to control inflation, which increased auto loan rates and reduced demand. The industry responded by offering lower loan rates through their financial institutions and increasing cash discounts. The government also banned exports of commodities like steel to reduce prices. The automobile industry introduced more fuel-efficient alternative fuel vehicles, expanded into smaller and more affordable car segments, improved engine technologies, deferred expansion plans, increased exports, and raised