Auto-maker Mahindra & Mahindra on Monday reported 3 per cent decline in total sales at 36,706 vehicles in May.
It had sold 37,869 units in the same month last year, M&M said in a statement.
In the domestic market, its sales were down 6 per cent to 33,369 units last month as against 35,499 units in the same month of last year.
Exports were up 40.8 per cent at 3,337 vehicles as against 2,370 units in the same period a year ago.
Sales of passenger vehicles, including Scorpio , XUV 500, Xylo, Bolero and Verito, stood at 18,135 units as compared to 19,470 units in May 2014, down 6.85 per cent.
Commercial vehicle sales were down 7.23 per cent to 11,407 units last month against 12,297 units in the year-ago period, M&M said.
Commenting on the outlook, M&M Chief Executive (Automotive Division) Pravin Shah said: "The auto industry has been showing signs of recovery and it is important that factors like an interest rate cut if considered, would accelerate growth."
He further said: "At Mahindra we hope to see improved sentiments with higher level of economic activities..."