Rout may not be over for Indian car stocks after losing $42 bn in value

Passenger vehicle growth in the financial year ended March was the slowest since 2014

India’s car stocks have lost $42 billion in value in the last 16 months, and some analysts say the rout may not be over.

A gauge of automobile companies has fallen 30 percent since reaching a record in December 2017, and is the worst-performer among 19 sector indexes in the nation’s equity market this year. That’s as the benchmark S&P BSE Sensex Index rallied to a fresh peak last month.

A slowdown in consumption amid a cash crunch in the banking system has left carmakers with a pile of unsold vehicles in what was one of the world’s fastest-growing auto