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India s auto stocks cheer after Parliamentary Panel agrees that they need more stimulus and the dealers need loans with less collateral

1.62%Source: BSE Auto Index There has been some recovery in auto sales in recent months. But, there is a peculiar situation in India, where the car makers and the dealers can’t agree whether the sales in the month of November were good or not! While the Society of Indian Automobiles, the lobby of car manufacturers, said it has been a great month, the dealers association wasn’t as excited. The recommendation from the Parliamentary panel has come at a time when car makers like Maruti and Mahindra & Mahindra have already announced discounts⁠ a usual fair at the end of every year⁠ after a losing an entire year to the pandemic and its extended impact. The recovery of this segment of industry is important because it employs a large number of people, many unskilled or less-skilled ones, and as per the panel’s estimate, 345,000 people have already lost their jobs.

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