Passenger car sales, which have been sliding since last summer, fell another 6% last month while those for two-wheelers—the larger and more profitable market—collapsed 15%. That's partly why India is largely a two-wheeler market, with annual sales of more than 20 million units compared with about 4 million for passenger vehicles. While India’s auto sector has outperformed the benchmark stock index for the past decade, it has under-performed by more than 25% since July, Bernstein analysts note. But that’s already a well-trodden path: such loans already back around 70% of passenger car buyers and 50% of the two-wheeler market, according to the Bernstein analysts. ALSO READ | Car sales in 2018-19 sputter in signs of worry for the Indian economyMeanwhile, other outlays continue to pile up.

Source: Mint April 09, 2019 15:55 UTC