On Monday, Zerodha CEO Nithin Kamath offered his two cents on Monday on Mercedes-Benz India's sales and marketing head, stating that Rs 50,000 SIP per month is hitting the luxury car market in the country.
While the luxury car industry is growing at one of its fastest rates after the flu, actual sales are a far cry from the potential and wealth India carries, Santosh Iyer told the Times of India in an interview.
Kamath said on Twitter that a savings mindset will be handy in a time when rising interest rates threaten to obliterate economies whose debt-to- GDP ratio is very high.
Kamath said that a saving mindset is what will help us in times like now when countries that have borrowed heavily are getting screwed? This will probably get worse before it gets better for them in a world of rising interest rates. Iyer, who will be taking over as MD CEO of Mercedes' India operations from January, told the newspaper that India has a strong savings mindset owing to the weaker social security measures and Indians end up saving for themselves and their kids.
There are 15,000 people who are inquiring about luxury cars every month, but the actual order size is about 1500 units. There are still 13,500 customers who wish to own a Mercedes-Benz, but postpone their purchase thinking that it is fine, maybe I should continue with my SIP or maybe the next dip in markets is there, he said.
A systematic investment plan is designed to help people with a stress free approach to entering the stock market, where they invest a specific amount every month to compound their wealth over the long term.
This is different from the West, where you save for yourself to the maximum extent. If a potential customer invests 50,000 into a SIP, the business will explode, Iyer said.
Kamath said in the tweet that debt-fuelled explosive growth will be a bad for customers and businesses in the long run.
Why does it seem that compounding in investing is better than debt-fuelled explosive growth where people borrow to buy depreciating assets? In the long run, it's not good for customers or businesses. He added that this is not what it reads and that he hopes it is a misquote.
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