For the second consecutive month, passenger car sales in India slid in August, declining by 10.08 per cent, according to figures released by the Society of Indian Automobile Manufacturers (SIAM) on Friday.
Passenger car sales stood at 144,516 units in August 2011, as against 160,713 units in August 2010.
The biggest decline was reported by Tata Motors, which saw a 39.45 per cent drop in sales to 13,508 units. It was followed by Maruti Suzuki (19.21 per cent fall to 63,296 units) and Hyundai Motors (7.51 per cent dip to 26,451 units). Labour problems have crippled Maruti's plant at Manesar in Haryana.
In July, domestic passenger car sales fell by 15.76 per cent, the first time they declined after continuous growth over the previous 30 months.
''High interest rates continued to be a big problem for the industry and it is impacting the cost of finance for both companies and customers,'' said Vishnu Mathur, director-general, SIAM. However, he hoped there would be a turnaround in car sales in September because of a good monsoon and the onset of the festive season.
SIAM has scaled down its growth projections for passenger cars, from an earlier forecast of 16 to 18 per cent to just 10 to 12 per cent in the current fiscal. Passenger car sales shot up by 30 per cent in 2010-11.