New Delhi, Dec. 18 -- Fitch Ratings has maintained a 'Neutral' outlook for India's auto loan asset-backed securities (ABS) sector for 2026, citing expectations of stable asset performance supported by resilient domestic economic growth.

According to the rating agency, India's economy is projected to expand by a strong 7.4 per cent in the financial year ending March 2026 (FY26), before moderating to 6.4 per cent in FY27.

Fitch noted that all its rated auto loan ABS transactions are backed by secured loans linked to income-generating assets such as commercial vehicles, which should help sustain steady loan performance amid robust growth conditions. Fitch said domestic demand will remain the key driver of economic momentum despite global t...