Bengaluru, September 1: Toyota Kirloskar Motor (TKM) here on Sunday reported a 24 per cent annual decline in car sales for August to 10,701 vehicles from 14,100 during the year-ago month due to economic slowdown.

"The consumer sentiment was muted in August as customers deferred purchasing. Floods across some states also hurt the demand, while unfavourable exchange rate didn't help our cost," TKM deputy managing director N. Raja said in a statement. Economic Crisis Hits Automobile Sector: Tata Motors & Honda Lose Sales By Over 50% in August 2019; Here Are All The Details

Export of its sedan Etios, however, grew 75 per cent to 843 units in the month under review from 481 units a year ago. "We sold 11,544 cars, including export, in August against 14,581 a year ago, registering 21 per cent overall annual decline," said Raja.

"Sale of Glanza vehicles have shown a positive momentum despite the slowdown in the industry impacting our domestic growth," said Raja.

"The government initiative to boost the auto sector growth with cheaper car loans, increasing liquidity through credit expansion to state-run banks, deferring one-time registration fee, higher depreciation for all vehicles and lifting ban on purchase of new vehicles by central and state governments is set to spur demand and growth," he said. Economic Crisis in India: Nirmala Sitharaman Quashes Manmohan Singh's Claims on GDP Data, GST Collections Decline; Here's All the Financial Development From August 2019

Stating that the latest FDI reforms will boost local manufacturing ando propel growth in the industry, Raja said, "We hope the festive cheer ushers in positive sentiments with better retail sales in the upcoming months."

TKM is a subsidiary of Toyota Motor Corporation of Japan for the manufacture and sales of Toyota cars in India.

(The above story first appeared on LatestLY on Sep 01, 2019 05:26 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website