New Delhi, Aug. 11: Car sales dropped in July for the first time in three years as the oil price spike and measures to control inflation dampened the mood. Domestic passenger car sales fell 1.71 per cent in July, while two-wheeler sales grew 19.47 per cent. “This is the first time since November 2005 that the passenger vehicle segment registered a decline. The central bank’s measures to contain inflation, the oil price hike and cost of finance has impacted growth in this segment,” said Dilip Chenoy, director-general of the Society of Indian Automobile Manufacturers (SIAM). According to figures released by SIAM, passenger cars clocked sales of 87,724 units during the month against 89,250 units in the same month a year ago. Total sales of domestic vehicles stood at 7,78,907 units compared with 6,81,771 units in the same month last year. The challenges continue to be the availability of finance, specially in semi-urban and rural areas, Chenoy said. According to auto analyst Murad Ali Baig, “Second-quarter sales are traditionally lower than the first quarter since people wait for the festive season. ” Interest rates on auto loans, which were in the range of 10-12 per cent in 2007, increased to 12-15 per cent this year. “Inflation is affecting the affordability of customers and high interest rates are also making it difficult for buyers to get loans. As the trend suggests, it will not be too surprising if we close the fiscal recording single-digit growth,” said Arvind Saxena, vice-president (sales and marketing) of Hyundai Motors India Ltd. In the passenger car segment, sales of Maruti Suzuki India grew 1.45 per cent to 45,757 units in July against 45,101 units in the same month a year ago. Rival Hyundai Motors recorded a flat month by selling 15,061 units in July, while the sales of Tata Motors fell 8.87 per cent to 12,012 units. Motorcycle sales jumped 21.91 per cent to 4,57,178 units against 3,75,004 units in the year-ago month. Hero Honda Motors sold 2,60,324 units, while rival Bajaj Auto sold 1,13,440 units. Sales of TVS Motors jumped 11.95 per cent to 39,448 units from 35,237 units in the same month last year. In the scooter segment, sales were up 6.36 per cent to 97,905 units against 92,048 units in the year-ago month.