Amid signs of an economic slowdown, car sales in India fell by a whooping 24 per cent, recording the steepest fall in over a decade, in the month of October.

The demand for cars fell in the country due to rising interest rates, high petrol prices and high inflation. Domestic car sales stood at 138,521 units compared with 181,704 units in October of 2010.

The production of vehicles was also affected following months of slowing sales and about 30,000 less cars, bikes and trucks were manufactured in India. The total production stood at 15,94,780 units compared with 16,24,086 units.

Petrol prices in the country have risen about 25% since the beginning of 2011 increasing the operating cost for petrol vehicles and dampening customer sentiments. The Society of Indian Automobile Manufacturers (SIAM) said that car production in the country fell by almost over 60,000 units last month to 156,090 units.

Most of the loss was at Maruti, which faced a crippling labour unrest. Maruti's production was down to less than half at 50,487 units as the labor continued their protest at its pants in Haryana.