Debt-Fueled Drive: Resilience And Risks In India’s Automobile Sector (2023-2025)

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Introduction

In the bustling lanes of India’s economy, the automobile sector has emerged as a vivid emblem of post-pandemic resurgence, yet one increasingly tethered to the precarious threads of debt. From 2023 to 2025, this vital industry—encompassing passenger vehicles (four-wheelers like cars and SUVs) and two-wheelers (motorcycles and scooters)—has demonstrated remarkable resilience, posting cumulative sales growth of 10.6% for passenger vehicles (from 3.89 million to 4.30 million units) and a robust 23.6% for two-wheelers (from 15.86 million to 19.61 million units), as per data from the Society of Indian Automobile Manufacturers (SIAM).

This ascent, fueled by rural recovery, festive demand surges, and policy tailwinds such as vehicle scrappage norms and ethanol blending initiatives, masks underlying vulnerabilities: moderating growth in 2025 amid economic headwinds, market saturation, and a heavy reliance on credit-financed purchases that now account for 75-80% of four-wheeler sales and 50-60% of two-wheelers.

This article delves into the dual narrative of triumph and caution. Drawing on annual and monthly wholesale data (approximating financial years to calendar years, with partial 2025 figures up to August), it dissects year-over-year trends, attributing growth drivers like the 15/10-year vehicle life policy (contributing 5-15% to sales upticks through replacements) and minimal impacts from ethanol fuel concerns (0-5%).

Beyond the numbers, it explores the sector’s entanglement with broader debt dynamics—where household leverage has climbed to 42% of GDP, underpinning 55% of domestic consumption—and external pressures, including RBI restrictions on credit card usage, dwindling U.S. remittances due to visa hikes, and near-zero net FDI inflows.

As India navigates this high-octane yet debt-laden journey, the analysis uncovers risks of defaults, enforcement mechanisms under laws like SARFAESI, and pathways toward sustainable mobility, urging a shift from credit dependency to balanced, inclusive growth. Whether you’re an investor, policymaker, or enthusiast, this exploration reveals how the wheels of progress turn on borrowed momentum, with implications for the nation’s economic roadmap ahead.

Note: Data is based on financial years (FY) as reported by the Society of Indian Automobile Manufacturers (SIAM), where FY 2022-23 approximates calendar 2023, FY 2023-24 approximates 2024, and FY 2024-25 approximates 2025. Calendar year (CY) data for 2025 is partial (up to August 2025, as of September 24, 2025), so full-year projections are not available. Four-wheelers refer to passenger vehicles (cars, utility vehicles, vans); two-wheelers include motorcycles and scooters. Sales figures are domestic wholesales (dispatches to dealers) in units.

Year (FY Approximation)Passenger Vehicles (Four-Wheelers)Two-Wheelers
2023 (FY 2022-23)3,890,11415,862,771
2024 (FY 2023-24)4,218,75017,974,365
2025 (FY 2024-25)4,301,84819,607,332

Percentage Change In Annual Sales (Year-Over-Year)

(a) Passenger Vehicles:

(i) 2024 vs. 2023: +8.45% ((4,218,750 – 3,890,114) / 3,890,114 × 100)

(ii) 2025 vs. 2024: +1.97% ((4,301,848 – 4,218,750) / 4,218,750 × 100)

(b) Two-Wheelers:

(i) 2024 vs. 2023: +13.31% ((17,974,365 – 15,862,771) / 15,862,771 × 100)

(ii) 2025 vs. 2024: +9.08% ((19,607,332 – 17,974,365) / 17,974,365 × 100)

Sales grew steadily, with two-wheelers showing stronger growth driven by rural recovery and affordable models. Passenger vehicles saw moderating growth in 2025 due to market saturation and economic headwinds. For CY 2023 approximation: ~4.12 million PV, ~17.06 million 2W. CY 2024: 4.3 million PV, 19.54 million 2W.

Monthly Comparison Of Automobile Sales (January-August, 2023-2025)

Data is from SIAM monthly reports (domestic wholesales in units). 2025 data is available up to August.

Month/YearPassenger Vehicles (2023)Two-Wheelers (2023)Passenger Vehicles (2024)Two-Wheelers (2024)Passenger Vehicles (2025)Two-Wheelers (2025)
January298,0931,184,379394,5711,482,987399,3861,526,218
February268,1191,172,305370,7861,439,523377,6891,384,605
March292,0301,589,976368,0901,450,882381,3581,450,000
April261,6981,226,041335,6291,751,393348,8471,459,000
May300,2031,469,205347,4921,988,732344,6561,655,927
June266,0271,314,441340,7841,861,867312,8491,555,073
July305,5011,410,101353,0461,441,694345,0001,567,267
August359,2281,529,875352,9211,711,662321,8401,833,921

Percentage Change In Monthly Sales (2024 vs. 2023)

  • January:
  • PV: +32.4% ((394,571 – 298,093) / 298,093 × 100)
  • 2W: +25.2% ((1,482,987 – 1,184,379) / 1,184,379 × 100)
  • February:
  • PV: +38.3% ((370,786 – 268,119) / 268,119 × 100)
  • 2W: +22.8% ((1,439,523 – 1,172,305) / 1,172,305 × 100)
  • March:
  • PV: +26.0% ((368,090 – 292,030) / 292,030 × 100)
  • 2W: -8.8% ((1,450,882 – 1,589,976) / 1,589,976 × 100)
  • April:
  • PV: +28.2% ((335,629 – 261,698) / 261,698 × 100)
  • 2W: +42.9% ((1,751,393 – 1,226,041) / 1,226,041 × 100)
  • May:
  • PV: +15.7% ((347,492 – 300,203) / 300,203 × 100)
  • 2W: +35.3% ((1,988,732 – 1,469,205) / 1,469,205 × 100)
  • June:
  • PV: +28.1% ((340,784 – 266,027) / 266,027 × 100)
  • 2W: +41.6% ((1,861,867 – 1,314,441) / 1,314,441 × 100)
  • July:
  • PV: +15.6% ((353,046 – 305,501) / 305,501 × 100)
  • 2W: +2.2% ((1,441,694 – 1,410,101) / 1,410,101 × 100)
  • August:
  • PV: -1.7% ((352,921 – 359,228) / 359,228 × 100)
  • 2W: +11.9% ((1,711,662 – 1,529,875) / 1,529,875 × 100)

Percentage Change In Monthly Sales (2025 vs. 2024)

  • January:
  • PV: +1.2% ((399,386 – 394,571) / 394,571 × 100)
  • 2W: +2.9% ((1,526,218 – 1,482,987) / 1,482,987 × 100)
  • February:
  • PV: +1.9% ((377,689 – 370,786) / 370,786 × 100)
  • 2W: -3.8% ((1,384,605 – 1,439,523) / 1,439,523 × 100)
  • March:
  • PV: +3.6% ((381,358 – 368,090) / 368,090 × 100)
  • 2W: -0.1% ((1,450,000 – 1,450,882) / 1,450,882 × 100)
  • April:
  • PV: +3.9% ((348,847 – 335,629) / 335,629 × 100)
  • 2W: -16.7% ((1,459,000 – 1,751,393) / 1,751,393 × 100)
  • May:
  • PV: -0.8% ((344,656 – 347,492) / 347,492 × 100)
  • 2W: -16.7% ((1,655,927 – 1,988,732) / 1,988,732 × 100)
  • June:
  • PV: -8.2% ((312,849 – 340,784) / 340,784 × 100)
  • 2W: -16.4% ((1,555,073 – 1,861,867) / 1,861,867 × 100)
  • July:
  • PV: -2.3% ((345,000 – 353,046) / 353,046 × 100)
  • 2W: +8.7% ((1,567,267 – 1,441,694) / 1,441,694 × 100)
  • August:
  • PV: -8.8% ((321,840 – 352,921) / 352,921 × 100)
  • 2W: +7.1% ((1,833,921 – 1,711,662) / 1,711,662 × 100)

The monthly trends show fluctuating growth, with 2025 exhibiting slowdowns in several months due to economic pressures, though two-wheelers rebounded in the latter months.

Monthly Comparison Of Automobile Sales (September-December, 2023-2025)

Data is from SIAM monthly reports (domestic wholesales in units). 2025 data is unavailable beyond August, as sales figures are typically released the following month.

Month/YearPassenger Vehicles (2023)Two-Wheelers (2023)Passenger Vehicles (2024)Two-Wheelers (2024)Passenger Vehicles (2025)Two-Wheelers (2025)
September361,7171,899,574356,7522,025,993N/AN/A
October389,7141,895,799393,2382,164,276N/AN/A
November334,1301,623,399349,9731,037,531N/AN/A
December286,3901,211,966314,9341,672,783N/AN/A

Percentage Change in Monthly Sales (2024 vs. 2023)

  • September:
  • PV: -1.37% ((356,752 – 361,717) / 361,717 × 100)
  • 2W: +6.65% ((2,025,993 – 1,899,574) / 1,899,574 × 100)
  • October:
  • PV: +0.91% ((393,238 – 389,714) / 389,714 × 100)
  • 2W: +14.18% ((2,164,276 – 1,895,799) / 1,895,799 × 100)
  • November:
  • PV: +4.73% ((349,973 – 334,130) / 334,130 × 100)
  • 2W: -36.09% ((1,037,531 – 1,623,399) / 1,623,399 × 100) (Note: Sharp drop likely due to festive sales shifting to October 2024)
  • December:
  • PV: +9.95% ((314,934 – 286,390) / 286,390 × 100)
  • 2W: +38.05% ((1,672,783 – 1,211,966) / 1,211,966 × 100)

No 2025 monthly data for September-December is available yet. August 2025 showed PV at 321,840 (-8.8% YoY from August 2024) and 2W at 1,833,921 (+7.1% YoY), indicating a potential slowdown.

Factors Responsible For Increase Or Decrease In Sales (2023-2025)

(a) Increases (2023-2024 Growth): Strong economic recovery post-pandemic, rising middle-class incomes, youth population demand, infrastructure investments, rural market revival, festive seasons, and EV adoption (e.g., two-wheelers led with 14.5% growth in CY 2024). Government policies like reduced GST on EVs and better financing options boosted affordability.

(b) Decreases/Slowdowns (2024-2025 Moderation): High base effect from prior years, weak urban demand, rising interest rates, inventory buildup, rural slump due to uneven monsoons, and economic uncertainties (e.g., PV growth slowed to 1.97% in FY 2025). Partial 2025 data shows declines in early months, linked to inflation and global slowdowns.

(c) Attribution of Sales Increases to Specific Regulatory and Fuel-Related Factors: In the context of India’s automobile sector from 2023 to 2025, where two-wheeler sales increased by approximately 23.6% cumulatively (from 15.86 million to 19.61 million units) and four-wheeler (passenger vehicle) sales rose by about 10.6% (from 3.89 million to 4.30 million units), attributing specific percentages of this growth to factors like the 15/10-year vehicle life norm (encompassing scrappage policies and regional bans) and ethanol-blended fuel damage is difficult. Precise breakdowns are challenging due to the multifaceted nature of sales drivers, including economic recovery, rural demand, EV incentives, and festive seasons. Data from sources like the Society of Indian Automobile Manufacturers (SIAM), ICRA, and S&P Global Mobility indicate these factors play contributory roles, but quantitative attributions are often prospective or indirect, with limited empirical evidence for the exact period.

(i) Attribution to the 15/10-Year Vehicle Life Norm (Scrappage Policy and Bans): India’s Vehicle Scrappage Policy (launched in 2021 and updated in 2024) mandates fitness tests for private vehicles over 15 years (petrol) and 10 years (diesel/commercial), with incentives like 25% tax rebates on new purchases for scrapped vehicles. This voluntary framework aims to phase out polluting end-of-life vehicles (ELVs), potentially driving replacement demand. Additionally, stricter regional bans—such as Delhi-NCR’s 2025 prohibition on fueling overage vehicles (effective July 2025, stemming from National Green Tribunal and Supreme Court orders)—have enforced de-registration and impoundment, forcing owners to replace vehicles in polluted zones. Industry projections suggest the policy could contribute 10-18% to annual new vehicle sales increases, primarily through forced or incentivized replacements. For instance, analysts from SNS Insider estimate a 10-12% annual boost to the automotive market due to scrappage, while IMPRI Impact and Policy Research Institute cites up to 18% potential rise in vehicle sales directly from the policy, driven by incentives and emission norms. ICRA projects an additional 570,000 vehicles crossing the 15-year threshold in FY2025-26, implying a replacement wave that could account for 5-10% of passenger vehicle growth in the short term. However, implementation has been slow, with only about 350,500 vehicles scrapped nationwide from August 2022 to July 2025 (per S&P Global Mobility), representing less than 3% of the estimated 12 million eligible ELVs. This equates to roughly 100,000-150,000 annual replacements over the period, potentially contributing to 2-5% of the overall sales increase (e.g., adding 100,000-200,000 units to passenger vehicle growth of ~411,000 units cumulatively). For two-wheelers, the impact is even lower, as the policy focuses more on four-wheelers and commercial vehicles. The Delhi-NCR ban, affecting over 900,000 de-registered vehicles from 2018-2023 and spurring a 25% rise in second-hand car queries in 2025 (per Economic Times), likely boosted new sales regionally by 5-10% in affected segments like urban passenger vehicles, but national data shows moderation in 2025 growth (e.g., 1.97% YoY for passenger vehicles), suggesting the ban offset some slowdowns rather than driving the bulk of increases. Overall, 5-15% of the 2023-2025 sales growth (higher for four-wheelers at ~10-15%, lower for two-wheelers at ~5%) is attributable to this norm, based on replacement projections. This is conservative, as actual scrapping lags targets (e.g., government aims for 500,000 annually by 2026), and much growth stems from other factors like post-pandemic recovery.

(ii) Attribution to Damage from Ethanol-Blended Fuel: India accelerated ethanol blending in petrol from E10 (10% ethanol) to E20 (20%) by April 2025, ahead of the 2030 target, to reduce oil imports and emissions. While this supports sustainability, concerns about “adulterated” fuel (high ethanol content) causing engine damage—such as corrosion in fuel lines, intake valves, and tanks; reduced mileage; rough idling; and clogged filters—have been raised, particularly for older vehicles (pre-2023 models not designed for E20). Drivers and forums (e.g., Team-BHP, Reddit) report increased repair visits and potential premature failures, which could theoretically prompt new purchases. There is no direct quantitative data attributing sales increases to ethanol-induced damage. Government and SIAM studies (e.g., Reuters, PIB) assert E20 is safe, with no reported breakdowns or engine failures, though mileage drops by 2-6% (higher in older vehicles). Automakers like those in SIAM confirm warranties remain intact, and internal tests show no major performance loss. Concerns are “largely unfounded” per officials, with minor retrofitting recommended for pre-2023 vehicles. A PIL in the Supreme Court (August 2025) challenges the rollout citing damage risks, but lacks evidence linking to widespread replacements. The E20 rollout was gradual (piloted in 2023, nationwide by 2025), so any damage effects would be more pronounced in 2025. However, sources like Context News and The Federal highlight driver backlash and repair issues but do not connect them to sales spikes. Insurers note non-coverage for wrong-fuel damage, potentially deterring owners rather than accelerating buys. With no breakdowns reported in official data and sales growth slowing in 2025 (e.g., monthly declines in passenger vehicles), it’s unlikely this factor drove significant increases. If anything, it may have suppressed demand via higher running costs (mileage loss equates to 2-4% effective price hike). Thus, 0-5% of the growth is attributable to this, mostly negligible, as EV adoption and incentives for E20-compatible vehicles (post-March 2023) account for any related uptick, not damage-forced replacements.

In summary, the 15/10-year norm likely accounts for a modest 5-15% of the sales increase, acting as a replacement catalyst amid slow implementation, while ethanol fuel damage contributes negligibly (0-5%), with complaints more about efficiency than outright failures leading to mass purchases. Broader economic factors dominate, and better data from SIAM’s FY2025-26 reports could refine these estimates. Policies should focus on education and incentives to mitigate unintended effects.

Percentage Of Auto Sales On Credit, EMI, And Cash; Financing Trends (2023-2025); Percentage Of Debt Due From Auto Purchasers

(a) Percentage on Credit/EMI vs. Cash: Approximately 75-80% of four-wheeler (passenger vehicle) purchases are financed via credit or EMI, with the remainder in cash. For two-wheelers, financing is lower at ~50-60%, as they are more affordable and often bought outright. This share has risen 5-7% since 2023 due to attractive schemes and digital lending.

(b) Financing Trends: EMI dominates (70-80% of financed sales), with banks and NBFCs leading (e.g., HDFC, SBI). Growth in auto loans was ~15-20% YoY from 2023-2025, driven by post-pandemic demand and EV incentives. Digital platforms increased penetration in Tier-II/III cities. Two-wheeler loans market ~Rs 880-1,320 billion (USD 10-15 billion at 1 USD = Rs 88 as on September 2025) by 2025.

(c) Percentage of Debt Due (Outstanding Auto Loans as % of Total Household Debt): Auto loans constitute ~5-8% of India’s household debt (total household debt ~42% of GDP in 2025, or ~Rs 141 trillion / USD 1.6 trillion at 1 USD = Rs 88). Outstanding auto debt rose ~22% YoY to ~Rs 4,400-5,280 billion (USD 50-60 billion) by 2025, with per capita borrower debt at ~INR 4.8 lakh (~Rs 4.8 lakh / USD 5,455). Defaults are low (~2-3%) but rising in unsecured segments.

How Debts Are Enforced Against People Who Cannot Pay Car Loans

In India, enforcement follows the SARFAESI Act 2002 for secured loans (e.g., car hypothecation). Process:

(a) Lender issues a demand notice for overdue payments (60-day cure period).

(b) If unpaid, vehicle repossession via legal process (no forcible seizure without court/tribunal order; Supreme Court prohibits musclemen).

(c) Auction of repossessed vehicle to recover dues; surplus returned to borrower.

(d) For deficits, civil suit or Debt Recovery Tribunal. Criminal action if fraud (e.g., Negotiable Instruments Act for bounced checks). Borrowers have rights to fair valuation and hearing.

    Discussion On Domestic Consumption Declining To 55% Of GDP And Its Debt Basis (2023-2025)

    Based on reliable and true data instead of fudged and manipulated government figures, domestic consumption (private final consumption expenditure, PFCE) stands at 55% of GDP in 2025 (from 58% in 2014 to 55% in FY25). Official government data claims ~61-64% (e.g., 61.5% in 2024), but this is overstated. Household debt rose to 40.2% of GDP in 2023, 42.9% in 2024, and ~42% in 2025, fueling ~55% of consumption (e.g., via personal loans, credit cards). This debt-driven model risks vulnerability if rates rise, but supports growth amid weak exports.

    Items On Which Indians Are Using Loans Or Debt (2023-2025)

    Loans are increasingly for non-housing retail (55% of household debt by 2025). Key categories:

    (a) Travel/Vacations: 27% of personal loan borrowers (up from 21% in 2023).

    (b) Electronics/Consumer Durables: 20-25% (e.g., smartphones, appliances via EMI).

    (c) Home Renovation/Medical: 15-20%.

    (d) Credit Cards/Gold Loans: Surged 20%+ YoY for daily expenses, weddings.

    (e) Autos/Education: 10-15%. Overall, personal loans grew at 18.7% CAGR, with >INR 10 lakh loans rising to 30.9%.

    Impact Of RBI Curb On Credit Card Use For Rent Payments On Paying And Sustaining Capacity

    RBI’s September 2025 ban on credit card rent payments via fintech apps (e.g., Paytm, PhonePe, Cred) disrupts cashflow for ~10-15 million urban tenants who used it for rewards (1-5% cashback) and grace periods (45-50 days). Impacts: Reduced sustaining capacity (higher immediate outflows, potential defaults on other debts); shift to UPI/NEFT (no rewards, straining budgets); affects first-time borrowers/lending ecosystem. Overall, could reduce disposable income by 2-5% for affected households, worsening debt stress amid 42% household debt-to-GDP.

    Negative Impact Of Decreased Foreign Remittances From US Due To Outsourcing Restrictions And H-1B Visa Fee Hike On Indian Economy And Domestic Consumption In 2025

    Trump’s $100,000 H-1B visa fee (effective 2025) and outsourcing curbs could cut Indian IT workers in US by 20-30%, reducing remittances (~USD 35 billion from US in 2024, 25% of India’s total ~USD 125 billion). Impacts: 5-10% drop in remittances, pressuring rupee (depreciation ~2-3%), inflating imports; lower domestic consumption (remittances fuel ~10% of rural/urban spending); GDP growth dip 0.5-1% in 2025; job losses in IT (~5 million dependent), hitting services exports (~USD 300 billion). Humanitarian effects include family disruptions.

    Impact Of Less Than 1% Net FDI In India In 2025 On Domestic Consumption And Growth (2025-26)

    Net FDI inflows plummeted to USD 353 million in FY 2024-25 (~0.01% of GDP), down 98% YoY due to repatriations and global uncertainty. Impacts: Reduced capital for infrastructure/manufacturing, slowing GDP growth; lower job creation (FDI drives ~10% of employment growth), curbing consumption (PFCE growth may slow to 6%); rupee volatility, higher borrowing costs. Positive reforms could reverse, but low FDI risks stagnation in consumption-led sectors like autos/retail.

    Conclusion

    In conclusion, the Indian automobile sector has exhibited notable resilience from 2023 to September 2025, navigating economic shifts with cumulative sales growth in both two-wheelers and four-wheelers, though decelerating paces highlight mounting macroeconomic challenges. Two-wheeler sales climbed from 15.86 million units in FY 2022-23 (approximating 2023) to 19.61 million in FY 2024-25 (approximating 2025), achieving a 23.6% overall increase propelled by 13.31% YoY growth in 2024 and 9.08% in 2025, bolstered by rural resurgence, affordable options, and festive boosts. However, monthly volatility in 2025—marked by steep YoY drops in April (-16.7%), May (-16.7%), and June (-16.4%), followed by recoveries in July (+8.7%) and August (+7.1%)—underscores uneven demand. Passenger vehicle (four-wheeler) sales advanced from 3.89 million units in 2023 to 4.30 million in 2025, reflecting a 10.5% cumulative rise with 8.45% growth in 2024 tapering to 1.97% in 2025. This slowdown is evident in 2025’s monthly figures, including declines in May (-0.8%), June (-8.2%), July (-2.3%), and August (-8.8%) versus 2024, stemming from market saturation, high base effects, and subdued urban consumption. Partial calendar-year data up to August 2025 (~2.83 million passenger vehicles and ~12.43 million two-wheelers) signals a tempered year-end, potentially stabilising rather than rebounding if headwinds endure. Contributory factors include the 15/10-year vehicle life norm (scrappage policy and regional bans), modestly attributing 5-15% of growth (higher for four-wheelers at 10-15%, lower for two-wheelers at ~5%) through replacement incentives and enforcement in areas like Delhi-NCR, though slow implementation (only ~350,500 vehicles scrapped from 2022-2025) limits its impact. Ethanol-blended fuel (E20 rollout by 2025) adds negligibly (0-5%), with complaints of mileage drops (2-6%) and engine damages in older vehicles.

    This expansion increasingly hinges on debt-financed consumption in a leveraged economy, where household debt reached ~42% of GDP by 2025, underpinning ~55% of domestic spending based on independent analyses rather than official figures. Financing now covers 75-80% of four-wheeler purchases and 50-60% of two-wheelers (up 5-7% since 2023), mirroring broader credit reliance for items like electronics (20-25%), travel (27%), home renovations, medical needs, and even daily essentials via personal loans and credit cards. Auto loans, growing 15-20% YoY, now total USD 50-60 billion outstanding (up 22% YoY), comprising 5-8% of household liabilities with average per-capita borrower debt at INR 4.8 lakh.

    In a consumption-driven economy where PFCE slowed in FY 2025 amid inflation and inequality, this dependency heightens risks: rising defaults (2-3%) could spike if incomes stall or rates rise, amplifying vulnerabilities. Debt enforcement under the SARFAESI Act—via demand notices, repossessions, auctions, and potential civil suits—safeguards lenders but burdens defaulters, risking eroded confidence and suppressed demand. Exacerbating pressures include the RBI’s September 2025 ban on credit card rent payments, disrupting 10-15 million users and cutting disposable income by 2-5%; declining U.S. remittances (down 5-10% from ~USD 35 billion in 2024 due to H-1B fee hikes to $100,000 and outsourcing restrictions), threatening a 0.5-1% GDP drag and rural spending; and negligible net FDI (0.01% of GDP in FY 2024-25), constraining infrastructure, job growth, and consumption-led sectors like autos.

    To steer through this fragile terrain, stakeholders should shift toward sustainable frameworks beyond credit boosts. Enhance financial literacy to promote cash or low-debt buys, especially for two-wheelers, via tax rebates on non-financed purchases. Strengthen lending regulations with EMI caps and rigorous affordability assessments, while scaling low-interest schemes for EVs to advance green objectives without debt inflation. Broaden economic bases by reforming FDI policies and investing in manufacturing/exports to lessen remittance dependence and external risks. Bolster rural resilience through subsidies for climate-smart agriculture, organically sustaining two-wheeler demand. By cultivating a debt-resistant, balanced model, India can evolve its automobile sector into a robust foundation for enduring prosperity, making mobility equitable and economically sound.

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