Auto major Mahindra & Mahindra on Thursday reported 21.85% decline in total sales at 32,499 units in November.
The company had sold 41,590 units in the same month last year, M&M said in a statement.
In the domestic market, sales were down 24.29% to 29,814 units last month as compared with 39,383 in November 2015, it added.
Exports during the month grew by 22% to 2,685 units as against 2,207 units in November last year, the company said.
Sales of passenger vehicles, including Scorpio, XUV500, Xylo, Bolero and Verito, were down 33% to 13,217 units as compared to 19,662 units in the same month last year.
Commercial vehicle sales were down 15% to 12,644 units in November as against 14,801 units in the year-ago period, M&M said.
M&M Chief Executive (auto division) Pravin Shah said, "While we expected an improved auto industry performance on the back of festive season and other positive parameters such as rural demand and interest rates softening, the sudden announcement of demonetisation has brought in an immediate disruption and uncertainty."
Although, demonetisation is a good and welcoming step in the mid to long term, this has dampened overall sentiments leading to postponed buying thereby resulting in a major dip in volumes during November, he added.
"This is significant as the automotive industry had just started experiencing stability post a long and tough period of uncertainty," Shah said.