Honda Cars India Ltd (HCIL) Saturday reported 27.87 per cent decline in domestic sales to 11,442 units in May as against 15,864 units in the same month last year.

HCIL said it also exported a total of 450 units during last month.

"The market continues to be tough for the auto industry with two consecutive months of such a high de-growth. It is unprecedented in the last two decades.

"After elections, we were expecting an upswing which has not yet come. Factors like liquidity that is affecting capital to auto sector along with increase in fuel prices have remained a challenge to revive consumer sentiments," HCIL Senior Vice President and Director, Sales and Marketing Rajesh Goel said.

The company is still hopeful that sales will revive due to favourable indicators on monsoon and expected actions by the new government, Goel noted.