Maruti, Bajaj Auto exports hit as Sri Lanka, Nepal turn on credit squeeze

The duty structure changed from being based on the import price to being based on engine capacity

Maruti Suzuki, Renault, Nissan and Bajaj Auto are facing the effects of a credit squeeze by banks in the neighbouring markets of Sri Lanka and Nepal.

Sri Lanka has imposed restrictions on the extent of bank funding for automobile purchases to control forex outgo. Earlier, banks in the island could fund up to 70 per cent of the value of an automobile but that has been lowered to 25 per cent of the value of three-wheelers and 50 per cent for cars. Banks can fund up to 90 per cent of the value of commercial vehicles. Nepal has imposed identical