Automobile sales in India fell by 41% in August. Consumer sentiment towards buying a new vehicle remain poor, the Financial Times reported.
Passenger car sales fell to 115,957 units compared to 196,847 units in the same month last year, according to the Society of Indian Automobile Manufacturers (SIAM).
This marks the fifth consecutive month of double-digit losses, the largest since the turn of the millennium.
The market for passenger vehicles also declined by around 32% to 196,524 units during last month as against 287,198 units in the corresponding month last year, SIAM statistics showed.
Regarding commercial vehicle sales, these declined by 39% to 51,897 units in August from 84,668 units in August 2018.
SIAM is said to be urging the government to cut the sales tax on automobiles from 28% to 18% in order to encourage car purchases.
The official Goods and Services Tax Council will meet next week. It is widely expected to cut rates, although to what extent is unclear.