Last month, India’s automotive sector contracted by 19 per cent, the biggest fall since April 2001. Passenger vehicle sales have been dipping for some time, an indication of tepid overall consumer demand, but now commercial vehicles have also begun to suffer, indicating that economic activity is slowing. Passenger vehicle sales went down 31 per cent year-on-year in June; it was 26 per cent for commercial vehicles. Two- and three-wheelers also suffered, though less than four-wheelers. Naturally, company finances have also taken a hit, with profits falling 28 per cent in the June quarter for auto manufacturers and 21 per cent