Bengaluru, Oct 1 (IANS): Japanese car maker Toyota on Tuesday reported an 18 per cent annual sales decline in India for September due to subdued sentiment and economic slowdown.

"We sold 10,203 units in September against 12,512 units in the same month a year ago, registering 18 per cent year-on-year (YoY) decline," said Toyota's joint venture with Kirloskar Motors, in a statement here.

Export of its Etios sedan, however, grew 25 per cent YoY to 708 units from 566 units a year ago (2018).

"In spite of higher exports, the total sales declined 17 per cent YoY to 10,911 units from 13,078 units a year ago," said the statement.

Toyota Kirloskar Motor Deputy Managing Director N. Raja said the consumer sentiment continued to be subdued, reflecting in the sales decline in the industry.

"We expect the demand to pick up during the Dasara and Diwali festivals this month for better sales," said Raja.

To prop up sales during the festive season, the company has rolled out a new version of its sports utility vehicle Fortuner TRD.

"The customer orders have been slightly encouraging since the 10-day Dasara fest began on the weekend. We hope the pace continues in the festive season to improve the demand," added Raja.

The company hopes the recent industry-friendly changes ushered by the government to reduce corporate tax and minimum alternate tax would improve the consumer sentiment to boost sales.

Month-wise, Toyota's car sales improved in September as it reported 24 per cent YoY decline in August when it sold 10,701 units as against 14,100 units in the same month a year ago.

"The consumer sentiment was muted in August, as customers deferred purchasing vehicles. Floods across some states also hurt the demand while unfavourable exchange rate did not help our cost," Raja said in a statement on September 1.