Mahindra blames scarcity of bank loans for dipping sales

Board Member Mahindra & Mahindra (M&M) Arun Nanda on friday blamed scarcity of bank loans for slow down in auto sales in country. According to him the effect of global downturn on auto sector would not be so large if bank loans for vehicles is available as before.

If bank financing was available, then the dip in sales would not have been so great. We would have seen a dip of 2-3 per cent in auto sales as against the 15-16 per cent now, he said at a KPMG seminar here. According to him the dependency of Indian auto sector on exports is just 20% compare to 50% in China and that's why Indian auto sector is more stable then China.