Since the bank lending has remained tight in the recent times, the sales of India's passenger car segment in domestic market declined for the fifth time in the last six months in December. The major reason was the slow economy which forced consumers not to purchase the new vehicles.

There was decline of 7% to 82,105 units in December in car sales from 88,272 sold in the same month last year.

The Indian Automobile Manufacturers (SIAM) said on Monday, "Total automobile sales were down 18.2% at 597,622 units while exports grew by 33% to 138,258 units."

It further added that there was a drop by 58.3% to 17,920 units in December in sales of trucks and buses, while total two-wheeler sales fell 15.4% to 461,302 units.

Last but not the least, the sales of motorcycles too plunged to 23% last month to 335,820 units, where as three-wheeler sales dived 29% to 19,048 units.