
RBI Cuts Interest Rate: How It Could Impact Luxury Car Demand in India
The Reserve Bank of India (RBI) has made a decisive move to bolster economic momentum. In its December 2025 policy review, the RBI trimmed the repo rate by 25 basis points (bps) to 5.25%. This follows a series of reductions throughout the year-totalling a 125 bps cut in 2025-aimed at supporting a “Goldilocks phase” of high growth and low inflation. While these macro trends impact the entire economy, the luxury automobile segment stands as one

