Zerodha CEO Nithin Kamath offered his two cents on Monday on Mercedes-Benz India’s sales and marketing head saying Rs 50,000 SIP per month by potential customers is hitting the luxury car market in the country.┬а
“While the luxury car industry is growing at one of its fastest paces post-pandemic, actual sales are a far cry from potential and wealth that India carries,” Santosh Iyer told the Times of India in an interview.
Kamath said on Twitter that a savings mindset will come in handy at a time when rising interest rates threaten to obliterate economies whose debt-to-GDP ratio is very high.
Kamath tweeted, “A saving mindset is what will help us in times like now when countries that have borrowed heavily are getting screwed? In a world of rising interest rates, this will probably get much worse before it gets better for them.”
Iyer, who will be taking charge as MD & CEO of Mercedes’ India operations from January, told the newspaper that unlike the West, India has a strong savings mindset owing to weaker social security measures and Indians end up savings for themselves and their kids.
“While there are 15,000 people inquiring about luxury cars every month, the actual order size is about 1500 units. So, there are still 13,500 customers who desire to own a Mercedes-Benz, but postpone their purchase thinking that its fine, maybe, I should continue (with) my SIP or maybe the next dip (in markets) is there,” he said.
A systematic investment plan (SIP) helps people who want to enter stock markets in a stress-free manner where they invest specific amount every month to compound their wealth over the long term.
тАЬThis is unlike the West, where you save for yourself to the maximum extent. The Rs 50,000 that a potential customer invests into a SIP, if diverted towards the luxury car market will see business explode,тАЭ Iyer said.
Kamath further said in his tweet that “debt-fuelled explosive growth” will be a bane for customers and businesses in the long run.
“Isn’t slow & steady growth much better (like compounding in investing) than debt-fuelled explosive growth where people borrow to buy depreciating assets? Neither good for customers nor for businesses in the long run. Btw, I hope this is a misquote & is not what it reads,” he added.┬а
ALSO READ: Zerodha warns users of dangerous scams involving bank accounts; check tips to stay safe
