Industry observers said that the high cost due to GST, low demand, and lack of adequate liquidity continued to dent purchases.
As per data furnished by the Society of Indian Automobile Manufacturers (SIAM), passenger car sales in the domestic market dropped to 139,628 units from 183,885 units sold during June 2018.
Among the other sub-segments of passenger vehicles, the number of utility vehicles sold in India went down by 0.99 per cent to 72,917 units in June 2019, while 13,187 vans were sold last month, down 18.7 per cent from the corresponding month of 2018.
Overall, passenger vehicle sales declined 17.54 per cent in June to 225,732 units from 273,748 units.
In the commercial vehicle segment, domestic sales were down by 12.27 per cent to 70,771 units last month, SIAM said.
Similarly, the data pointed out that three-wheelers' sales decelerated. The segment's offtake went down by 8.79 per cent to 51,885 units during the month in consideration.
In addition, overall sales of two-wheelers, which include scooters, motorcycles and mopeds, edged lower by 11.69 per cent to 1,649,477 units.
Accordingly, the total sales of the Indian automobile sector declined by 12.34 per cent during June 2019 to 1,997,952 units across segments and categories.
However, exports across categories was higher by 1.03 per cent to 399,228 units.
"Sector continued with a double digit decline primarily due to low passenger vehicle sales, lowest since June 2017, A2W sales and CV sales and has not shown any improvement contrary to belief that things should look up post elections," Grant Thornton India Partner Sridhar V. told .
"The slowdown has resulted in cut down in productions by some of the OEMs. This is a reflection of the continuing tough conditions in terms of tight liquidity, increased pricing and reduced rural spend. In addition, a weak monsoon and no indication of reduction in GST rates will be a challenge for any sign of immediate revival."
According to Anupama Arora, Vice President and Sector Head, Corporate Sector ratings, ICRA, the seventh consecutive month (June) of volume degrowth for two wheelers in domestic market continues to reinforce the weak consumer sentiments.
"Seventh consecutive month of volume degrowth for two wheelers in domestic market during June 2019 continues to reinforce the weak consumer sentiments," Arora said.
"This emanates from limited employment generation in urban areas which coupled with delayed monsoons as well as supressed farm cash flows of rural customers has resulted in post ponement of discretionary purchases."
( With inputs from IANS )