Tata Motors logos are pictured outside their flagship showroom in Mumbai
Tata Motors on Monday reported a 7.48% increase in total sales at 43,160 units in July.
The company sold 40,154 units in the same month last year.
Domestic sales of Tata Motors' commercial and passenger vehicles grew 8% to 37,789 units in July over the same month of the previous year.
Sales of passenger vehicles in the domestic market grew 31% to 13,547 units last month as against 10,335 in the year-ago period, Tata Motors said in a statement.
Passenger car sales were up 43.29% at 12,209 units in July compared with 8,520 in the year-ago period.
In the commercial vehicles segment, the company's domestic sales were down 2% at 24,242 units, Tata Motors said.
Exports during the month were up 6% at 5,371 units compared with 5,078 sold in July 2015.