Commerce and Industry Minister Nirmala Sitharaman on Monday met representatives of automobile industry body SIAM and discussed challenges faced by the sector that is reeling under a prolonged demand slump.      

"Discussed issues facing automobile industry with representatives of Society of Indian Automobile Manufacturers (SIAM)," Sitharaman tweeted.            

While comments from SIAM officials could not be immediately obtained, the industry body has been asking the new government to retain the current excise rate beyond June 30 deadline.           

In the interim Budget, excise duty on small cars, scooters, motorcycles and commercial vehicles were cut to 8 per cent from 12 per cent earlier.           

The same for SUVs was slashed to 24 per cent from 30 per cent, while on large cars it was reduced to 24 per cent compared from 27 per cent earlier and mid-sized cars to 20 per cent from 24 per cent previously.           

Ahead of the Budget, SIAM has also been asking for the roll out of GST,  environmental clearance for industrial projects to kick start the economy so that it can have a trickle down impact on the sales of automobiles, particularly the commercial vehicles category, which witnessed 19th successive month of sales decline in May.           

India's automobile industry has been struggling from a prolonged market slump. Car sales in India fell for the second consecutive fiscal in 2013-14 with a drop of 4.65 per cent at 17,86,899 units as compared to 18,74,055 units in the previous fiscal.            

In the 2012-13, car sales in India fell 6.69 per cent, which was the first decline in a decade.  

Last month car sales in India, however, grew 3.08 per cent snapping two successive months of fall riding on positive sentiments over formation of a stable government at the Centre and lower excise duty in the interim Budget.