ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon Print

India's shadow bank woes rattle broader economy

Auto industry skids as cash-strapped lenders pull back from car financing

New-auto sales in India fell 17% for the April-June quarter. Industry officials say the decline stems in large part from nonbank lenders' struggles.  (Photo by Takaki Kashiwabara) 

MUMBAI -- The credit crunch in India's shadow banking sector, or nonbank lenders, has begun to squeeze the economy, with a crucial auto sector shedding jobs as reduced consumer access to loans dents sales.

After a strong first half of 2018, new-auto sales in India began declining on the year in November and tumbled 17% for the April-June quarter. Sales of passenger vehicles sank 31% in July, marking the ninth straight month of declines, according to the Society of Indian Automobile Manufacturers.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century.

Celebrate our next chapter
Free access for everyone - Sep. 30

Find out more