Unable to wriggle out of the downturn either by discounts or by launching new products, auto makers have sought a stimulus package for the sector.
Domestic car sales stood at 139,632 units in June against 153,450 units year-on-year.
Market leader Maruti Suzuki posted 8.17% decline in sales at 65,172 units against 70,977 units in the corresponding month last year, while Hyundai Motor India posted a marginal increase in sales to 30,577 units from 30,363 units in the year-ago period.
Tata Motors had a decline of 29.17% to 9,628 units from 13,595 units, while Mahindra & Mahindra posted 17.17% decline in its utility vehicle sales at 15,916 units from 19,348 units in June last year.
“The government needs to take a re-look and bring a stimulus package for the auto industry to help achieve higher growth,” said S Sandilya, president, Society of Indian Automobile Manufacturers (Siam).
The government had announced a stimulus package during the 2008-09 downturn when sales had declined for just three months. It had cut excise duty on two-wheelers, small cars and commercial vehicles (CVs) to 8%.
“This time it is much worse,” said Vishnu Mathur, director general, Siam.
Motorcycle sales last month declined by 9.16% to 799,139 units from 879,721 units in the same month in 2012. Sale of commercial vehicles declined by 13.45% to 56,197 units from 64,928 units in the year-ago period.