Home-grown auto major Tata Motors today reported a 7 per cent increase in total sales at 46,216 units in July.
The company had sold 43,160 units in the same month last year, Tata Motors said in a statement.
Domestic sales of Tata Motors' commercial and passenger vehicles were up by 13.2 per cent at 42,775 units last month as compared to 37,789 in July 2016.
Sales of passenger vehicles in the domestic market grew 10.23 per cent to 14,933 units last month as against 13,547 in July last year.
Tata Motors President, Passenger Vehicles Business Unit, Mayank Pareek said there was an an improved customer buying sentiment, post GST.
He said the company's hatchback Tiago continued to witness strong demand while compact sedan Tigor and SUV Hexa also had strong traction in the market.
On the outlook, Pareek said: "We continue to maintain cautious optimism and will work towards turning around the business, in line with our well-defined strategy."
In the commercial vehicle segment, the company said its domestic sales were up 15 per cent at 27,842 units last month following ramp-up of BS-IV production across segments.
Overall sales of Tata Motors' MHCV (medium and heavy commercial vehicle) trucks were at 8,640 units as against 7,879 in July 2016, a growth of 9.65 per cent.
On the exports front, Tata Motors said its overseas shipments last month were at 3,441 units compared to 5,371 a year ago, down 35.93 per cent, due to a decline in sales in Sri Lanka and Nepal.