Continued decline in car sales could force manufacturers decrease production and cut jobs, according to the Society of Indian Automobile Manufacturers (SIAM).

Data released by the industry body revealed that car sales slipped 12.26 per cent in May, and it was the seventh consecutive month to report a decline in sales.

Manufacturers sold a total of 143,216 passenger cars in the domestic market during the month of May this year, as against 163,222 units in the corresponding month of the previous year.

SIAM said it is the longest stretch of consecutive car sales decline suffered by Indian car industry ever.

Vishnu Mathur, director general of SIAM, "This is the longest stretch of consecutive car sales decline witnessed ever. Even during the 2008-09 downturn car sales dipped for few months and recovered back strongly."

Mathur added that the Indian automobile industry has been suffering worrying times.

Traffic at car showrooms and the conversion to actual sales have been on the decline, despite attractive offers and big discounts.