Shadow bank crisis hits India’s auto sales 
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Year-on-year passenger vehicle sales in India fell by 17.5 percent in June – the eighth consecutive fall in monthly sales – driven by a liquidity squeeze in the country’s shadow banking sector
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New vehicle sales (excluding exports) 
June 2018
June 2019

225,732
DOWN 17.5%
Passenger vehicle sales 273,748


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Maruti Suzuki India Ltd.  114,861   135,662  DOWN 15.3%

Tata 49,073  56,773  DOWN 13.6%

Hyundai Motor India  42,007  45,314  DOWN 7.3%

Mahindra & Mahindra  33,689  35,262  DOWN 4.5%

Toyota 10,603   13,088    DOWN 19.0%

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Shadow banks: $65.4 million default by Infrastructure Leasing & Finance Services in 2018 led to shadow banking sector hiking borrowing costs on retail auto sector
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State Bank of India: SBI halts lending to car dealers unless they provide security of 25% and 50% of loan amounts. SBI has also cut credit period for dealers from 90 days to 60 days
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Sources: Reuters, MarkLines, Society of Indian Automobile Manufacturers © GRAPHIC NEWS