Falling fuel, interest cost should help revive demand: Hero

The RBI's move to cut interest rates is a big sentiment booster, said Sunil Munjal, Joint Managing Director, Hero Motocorp.

In an interview to CNBC-TV18, Munjal said the RBI could cut interest rates in a phased manner but at quick interval so as to boost sentiment of industry, consumer, as well as investors looking to put money in projects.

He said the recovery in the industry has been slow and somewhat patchy, and not all segments are doing well. There were expectations that demand would pick up by December, but now it appears that a recovery could be another 6 months away.

He said the reversal of excise duty cut has hurt demand to some extent, but falling petro prices and a likely reduction in interest rates should help revive demand.