"These figures have disappointed all our earlier forecasts, there has been a reversal in buying behaviour, " said Sugato Sen, deputy director general of SIAM.
Mr. Mathur, SIAM's director general, said the authorities need to do a "lot more" to encourage commercial banks to cut interest rates to help revive car sales.
Sugato Sen, SIAM's deputy director general, said the continued slowdown is forcing auto makers to "reschedule" their expansion programs, adding that some may eventually cut their investment plans.