There seems to be no end to lending woes for automakers in India. Not only the entry-level bikes and cars, but even the buyers of premium cars, the high net worth individuals, are kept away by the banks.

Anybody who thought that getting a loan for a new car or bike was a problem only for those going for cheaper products and not those seeking the swankier rides must think again.

When it comes to auto loans, the credit squeeze has hit not just the middle class but even high net worth individuals who are being turned away by finance companies and banks.

Paul De Voijs, MD of Volvo India, said, "The customer who have already bought a Volvo car does not get financing to buy a second car. It is very difficult to get financing. Hopefully things will improve."

Sources at one of the leading private sector banks told NDTV that the finance tightening has started to happen. It was witnessed in some pockets during the month of October due to the overall sentiment and liquidity squeeze in the system, but it may spread to other regions if things did not improve.

So in a situation where the lending situation is showing no signs of improving, what are automakers doing to keep the market excited? Well, carmakers have lined up a slew of launches and the focus is also to reel in buyers through aggressive pricing.

Most carmakers are seen increasing localisation levels on their cars to bring the costs down.

However, with banks still hesitant to lend automakers are hopeful that the recent downtick in inflation does see interest rates come down and lending levels increase. As for now, it looks like a long hard winter ahead for motown.