The Indian passenger car market will likely see a flat or marginal growth in sales in the current fiscal year, the Society of Indian Automobile Manufacturers (SIAM) said.

SIAM on Wednesday slashed its October growth forecast for passenger car sales to 0-1 per cent for the fiscal year 2012-13. In October, the industry body had estimated passenger car sales for the current fiscal at 1.3 per cent.

Earlier in the year, SIAM had predicted that passenger car sales would increase by 9 per cent to 11 per cent for the year.

The most recent revision emerged as passenger car sales slipped 12.5 per cent to 141,083 units in December 2012. It was the steepest fall in passenger car sales since August 2012, when sales had fallen 18.56 per cent.

The industry body held the combination of high interest rates, high fuel prices and weak consumer sentiment responsible for the decline in sales.

Speaking on the topic, SIAM President S Sandilya said, "Negative sentiments among consumers at the entry-level due to high interest rates and fuel prices are hurting sales."

SIAM also slashed its sales growth forecasts for two-wheelers and commercial vehicles from 5-7 per cent to 3-5 per cent and from 3-5 per cent to 0-2 per cent, respectively.