New Delhi, May 10 (IANS): Domestic passenger car sales in India increased by only 3.40 percent in April and stood at 168,351 units from 162,813 units sold in the like period of 2011, according to data furnished by an industry body Thursday.

According to the Society of Indian Automobile Manufacturers (SIAM), high interest rates and rising fuel costs affected demand in the entry level segment of cars.

"We expect the sales to pick in the second half of the year, which is also the start of the festive season. High interest rates, fuel cost and inflation has dented the entry level sales of cars," a senior official with SIAM said.

Passenger car exports dwindled in April by 10.45 percent to 37,676 units from 42,073 units shipped out in the corresponding period of 2011.

The total domestic passenger vehicle sales, including those of cars, utility vehicles and vans, grew by 9.30 percent in the month under review at 227,034 units from 207,724 units in the like period of last year.

Exports of passenger vehicles, including cars, utility vehicles and vans, was down by 10.47 percent at 38,178 units from 42,643 units shipped put in April 2011.

However, domestic two-wheeler sales during the month rose by 10.94 percent to 1,157,108 units from 1,043,010 units. Motorcycle sales went up by 6.54 percent at 861,602 units.

Commercial vehicle sales, including those of light commercial vehicles and heavy commercial vehicles, rose by 4.37 percent to 56,257 units in April from 53,903 units in the previous corresponding period, the SIAM data said.

Total sales across categories grew by 10.01 percent to 1,472,385 units in the month under review from 1,338,430 units in the corresponding period of 2011.

Exports across categories increased by 1.29 percent at 265,553 units from 262,172 units which were shipped out in April 2011.