India car market reels from financial and regulatory triple threat

Tighter loans, higher insurance and tougher emission standards drive sales slump

20190726N Tata Motors

Workers assemble a Tigor model at a Tata Motors plant in Sanand, India. © Reuters

AKIRA HAYAKAWA, Nikkei staff writer

MUMBAI -- A credit crunch, pricier insurance and tougher environmental regulations have caused India's demand for automobiles to shrink for eight consecutive months through June, a slump not seen in six years.

New auto sales decreased 16% in June compared with a year earlier, data from the Society of Indian Automobile Manufacturers shows. The monthly setbacks have idled factories and shuttered dealerships.

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