General Motors India on Tuesday reported a 21.33 per cent decline in total sales for June at 5,172 units.
The carmaker had sold 6,575 units in the same month last year, it said in a statement.
June 2014 sales include 1,776 units of Beat, 1,249 units of Tavera and 987 units of Chevrolet Enjoy.
"Customer sentiment continues to remain negative even with price reduction on account of the continuation of the excise duty cuts till the end of this year," General Motors India vice president P Balendran said.
Going by the market scenario, the company expects the challenging times to continue as the general economic conditions have not improved, he added.
"The buoyancy in the market is still missing and we don't see any sustained market upturn till the new government presents a growth-oriented budget to boost the overall economy."
Unless structural bottlenecks ease and economic fundamentals improve, the market is unlikely to turnaround in the short term, he added.