According to the latest figures, the total car sales have fallen 8.25 per cent during the month of November as high interest rates and fuel prices dampened car sales.

Society of Indian Automobile Manufacturers (SIAM) said that the total sale of vehicles across categories registered an increase of 1.79 per cent at 15,15,600 units compared to 14,88,894 units recorded in the same period of the previous year.

The figures released by SIAM showed that the sales in the domestic passenger car market fell 8.25 per cent to 1,58,257 units during the month of November compared to 1,72,493 units in the same month of the previous year. The fall is the sharpest fall since August, 2012 when the sales had fallen 18.56 per cent.

SIAM Director General Vishnu Mathur said, "The carryover from the festive season was not there. Market continues to be tough due to the same reasons such as the high interest rates and fuel prices, and low consumer sentiments." He also said that the month of December is likely to be slower because the industry has never recorded higher sales in December compared to October and November.

Car sales in the country have fallen mainly due to high interest rates on financing and increasing prices of fuel. According to the analysts, the increased fuel costs, expensive loans and long inflationary pressures will continue to put pressure on the sector and demand for new vehicles.