On Friday, the government data showed GDP growth for the second quarter has slowed down to a 26 quarter low of 4.5 per cent.
Two wheelers and three wheelers, were expected to decline by 6-7 pc this fiscal as compared with 2018-19 to around 25 million units.
Sales of commercial vehicles and two wheelers have narrowed down to 7.4 per cent and 0.3 per cent month-on-month.
Due to increased prices of auto parts, taxes and rise in insurance rates are some of the reasons for slow down in automobile industry.
Sales dip for tenth straight month, logging worst-ever fall of 31.57 per cent.
It said the passenger vehicles sales decline would be in the range of 4-7 per cent and M&HCV trucks would drop in the 0-5 per cent range in FY20.
The automobile sector accounts for 49 per cent of India's manufacturing gross domestic product (GDP).
The Niti Aayog has suggested transition to full electric vehicles for three-wheelers by 2023.
The current decline of the automotive industry can be credited to various factors.
The sector has already culled 3.5 lakh jobs since April.