“What was an investment-led slowdown has broadened into consumption, driven by financial stress among rural households and weak job creation,” it said adding a credit crunch among non-bank financial institutions (NBFIs), major providers of retail loans in recent years, has compounded the problem.

India’s GDP expansion has slowed to a six-year low of five percent for the June quarter. This has led to a rash of downward revisions in expectations, including from the RBI which now expects GDP growth to come down to 6.1 percent in FY20.

Even the LCV (truck) segment, which was relatively insulated from the impact of revised axle load norms has been impacted over recent months with the weakness in consumption-oriented sectors and subdued rural demand sentiment, it added.