Passenger car sales fell 0.89 per cent in the domestic market in June, the second time in the last six months, to 64,464 units from 65,046 units in the same month last year.
The sales were down with as much as six of the eleven carmakers, including Hyundai India and domestic homegrown major Tata Motors, reporting a decline in numbers, according to figures released by the Society of Indian Automobile Manufacturers.
SIAM director general Dilip Chenoy said the downturn was expected to be a temporary one, though any negative policy decision could have long-term effect.
"We believe that the decline in June may be due to diversion of consumer spending to other areas like foreign travel, housing, et cetera," Shenoy said.
The last time car sales were down was in February this year when they dropped 4.2 per cent to 62,072 units (64,819) on concerns relating to the Budget.
Car sales in the first quarter of this financial year (April-June '05), however, saw a modest 8.24 per cent increase to 1,96,910 units against 1,81,919 units in the same period last fiscal.
Sales of motorcycles continued their growth run in June as well as they moved up 13.67 per cent to 4,15,598 units against 3,65,604 units in the same month last year.
While market leader Hero Honda saw the pace slackening down relatively in June as growth stood at 9.2 per cent at 2,14,048 units, Bajaj Auto led the pack on a 34 per cent jump in numbers which stood at 1,21,448 units (90,402).
Even as the country's third-biggest bike maker TVS Motors improved its numbers, others like Yamaha India, LML and Kinetic continued on the decline path.
Bike sales in the April-June quarter stood at 13,10,439 units, a growth of 21.9 per cent over 10,74,890 units in the first quarter of last fiscal.
Even as sales of mopeds grew a marginal 3.3 per cent in June at 28,244 units (27,339), scooter/scooterette sales dropped as much as 15.79 per cent to 65,035 units against 77,234 units in the same month last year.
This can be attributed to the ongoing strike at the factory of segment leader Honda Motorcycle and Scooter India which saw numbers decline 22.4 per cent to 25,530 units from 32,912 units in June last year.
HMSI is in the grip of a severe labour unrest which hit its production, primarily in June.
Scooter/scooterette sales in the first quarter of this fiscal saw a miniscule 0.22 per cent drop to 2,18,212 units from 2,18,683 units in the same period last fiscal.
Commercial vehicle sales in June were up 15 per cent to 27,035 units (23,609) and the recent decline in demand for medium and heavy commercial vehicles was arrested.
Total M&HCV sales in June stood at 16,208 units, a growth of 16.6 per cent over 13,898 units in the same month last year. On the other hand, light commercial vehicles sales were up 11.49 per cent to 10,827 units (9,711).
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