According to the figures released by the Society of Indian Automobile Manufacturers (SIAM), sales of passenger cars dropped for a second consecutive month during August, as rising interest rates and higher costs kept potential investors at bay.

The SIAM data disclosed that domestic car sales for the month (Aug 2008) fell 4.38% to 94,584 units, as compared to 98,893 units during the corresponding period last year (Aug 2007).

The Indian car sales fell for the first time in over two and a half years in July.

On the other hand, sales of commercial vehicles (CV) declined to 34,294 during August versus 36,615 units in the same month a year earlier.

At 620,927 units two-wheeler sales in August 2008 were down compared to the 543,504 units sold in August 2007.

Total auto sales during August stood at 809,889 units as against 738,861 units in the same period of last year, showing a rejection of 9.6%.

At the same time, exports went up to 140,728 units from 112,105 units in the year-ago period.