The BSE Auto index was down 3% to 4,430.28. It underperformed the BSE Sensex, which was down 0.65% at 13,416.87

Mahindra & Mahindra (down 3.31%), Maruti Suzuki India (down 3.68%), Hero Honda Motors (down 2.78%), Bajaj Auto (down 1.25%), Ashok Leyland (down 2.73%), and Tata Motors (down 2.85%), declined

The BSE Auto index had outperformed the market over the past one month till 10 July 2009, falling 8.24% as compared to the Sensex's 12.69% decline. It also outperformed the market in the past one quarter, advancing 38.62% as against the Sensex rise of 24.99%.

As per report by the Indian Meteorological Department (IMD), the country as a whole received 36% less rainfall than the average since the start of the monsoon till 8 July 2009.

India's monsoon rains, which run between June to September, are critical to farm prospects, which account for a sixth of economic output. Up to 70% of Indians are dependent on farm incomes, and about 60% of India's farms depend on rains.

Poor crop resulting from a poor monsoon would mean a decrease in disposable income levels in rural India, thereby curtailing sales at Indian automakers. According to industry estimates, about 40% of the sales of two-wheelers are in semi-urban and rural areas.