Tata Motors' sales growth remained flat at 40,680 units in August compared to 40,883 vehicles in the same month last year.
Domestic sales of Tata Motors' commercial and passenger vehicles declined by 3 per cent at 35,478 units during the month as against 36,403 units sold in August, 2014.
Sales of passenger vehicles in the domestic market in August this year stood at 11,194 units as against 10,975 units in the same month previous year, up 2 per cent, Tata Motors said in a statement.
As for passenger cars, the sales were 19 per cent higher at 9,814 units in August, as compared to 8,229 units in same period of last year.
Utility Vehicle sales declined by 50 per cent during the last month to 1,380 units, compared to the year-ago period.
"The growth that we are seeing in the industry is because of the new models. If you take out the new models, the industry growth will be in the negative," Tata Motors President (Passenger Vehicles Business Unit) Mayank Pareek told PTI.
This is a concern as August is the time when usually sales start picking up, which hasn't happened this time, he said, adding that the 'pain areas' of the industry were dip in consumer sentiment, with expectation of a cut in interest rates making customers postpone purchases.
He further said the narrowing gap between petrol and diesel fuel prices has hurt demand for utility vehicles, which also had been affected due to the hike in excise duty.
In the commercial vehicles segment, the company's domestic sales stood at 24,284 units, down 4 per cent over August 2014, the company said.
Exports during the month stood at 5,202 units as compared to 4,480 units in August 2014, up 16 per cent.
