Maruti Suzuki India Is In Talks With Banks To Nudge Them To Ease Their Strict Lending

Maruti Suzuki India is in talks with banks to nudge them to ease their strict lending norms and offer retail financing to dealers of the country’s largest carmaker, a senior company executive said.

The move by the Suzuki Motor Corp. unit underscores a squeeze on dealer cash flow with passenger vehicle sales staying muted for several months while banks have cut financing for dealers due to worries whether the loans would be repaid.

Bad loans have risen in the auto sector as weak retail sales have forced the closure of several dealerships. This has led major banks such as the State Bank of India, HDFC Bank and others to tighten credit norms for automobile dealers.

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