New Delhi, Sep 1 (IANS): Automobile major Hyundai Motor India Thursday reported a marginal increase of one percent in its cumulative sales for August at 51,030 units as against 50,6331 units sold in the like period of last year.

"The market continues to be tough and there are no signs of recovery in the immediate future," said Arvind Saxena, director, marketing and sales, Hyundai Motor India.

According to Saxena, the slowdown in sales is due to the rising fuel prices coupled with high interest rates which has dampened consumer sentiments.

"The rising fuel prices and interest rates have been instrumental in this sluggish market trend," Saxena said.

Domestic sales dropped by 6.7 percent in August at 26,677 units as compared to 28,601 units sold in the corresponding month of last year.

Exports grew by 10.5 percent in the month under review at 24,353 units as against 22,032 units in August 2010.

Segment-wise cumulative sales in August were led by the company's best-selling hatchback segment A2, which includes Santro, i10 and i20 at 43,687 units. This was followed by the A3 sedan segment, including Accent and Verna at 7,105 units, luxury sedan Sonata Transform at 12 units and sports utility vehicle (SUV) Santa Fe at 226 units.