Mumbai, Jan. 2 -- Domestic passenger car sales rose by 6.05% during a volatile 2018 to over 2.55 million units on the back of a low base before July and a string of new launches after the Auto Expo in February. The carmakers in India have, however, not reported their December sales figures yet.

The trend in car sales was robust during the first half of the calendar year on the back of new launches, expectations of a healthy monsoon and a low base, but weakened since July due to factors such as the devastating floods in Kerala, unfavourable macroeconomic scenario, as well as regulatory changes and high fuel prices, which increased the cost of ownership.

The hardest blow came during the 42-day festive season, which ended with Diwali in earl...