Four reasons why this auto slowdown is different and the road ahead

The recent NBFC crisis had a twin effect on demand. It curtailed financing to new vehicles, and NBFC were financing customers who were not preferred for financing by banks

The Indian automobile industry has failed to shake off the slowdown that has been plaguing it for months now. Auto sales across all segments continued the downtrend in June as manufacturers cut production to keep inventory in check amid weak retail sales and subdued consumer sentiment.

During the month, domestic sales across passenger vehicles (PVs), commercial vehicles (CVs) as well as two- and three-wheelers fell 12 per cent year-on-year, industry body Society of Indian Automobile Manufacturer (Siam) said. The combined sales of all automobiles fell to 1.9 million units in June against 2. 2 million units a year ago.

So,