Indian car sales dip most in 5 years

India's passenger-car sales declined 19 percent last month, the most in more than five years, as tighter lending by banks and a slowing economy hurt demand.

Sales fell to 83,059 from 103,031 a year earlier, the Society of Indian Automobile Manufacturers said in a statement in New Delhi yesterday. That's the biggest drop since a 31 percent decline in February 2003, according to Bloomberg data. The total sales were the lowest level in two years.

Demand in Asia's fourth-largest automotive market has fallen in four of the past five months as banks cut back on automotive loans and the wider economic slowdown kept consumers away from showrooms. Maruti Suzuki India Ltd, the nation's biggest carmaker, and its rivals have cut prices to revive demand as the government slashed taxes to stimulate the economy.