Auto major Mahindra & Mahindra on Thursday reported 3 per cent increase in total sales at 41,895 units in May.
The company had sold 40,656 units in the same month last year, the company said in a statement.
In the domestic market, sales were up 10.89 per cent at 40,602 units last month compared to 36,613 units in May 2016.
Exports were down 68 per cent at 1,293 units in May against 4,043 units in the same month last year.
Sales of passenger vehicles, including Scorpio, XUV500, Xylo, Bolero and Verito, were up 3.33 per cent at 20,290 units compared to 19,635 units in the same month last year.
Commercial vehicle sales were up 23.99 per cent at 16,255 units in May against 13,109 units in the year-ago period, M&M said.
M&M President Automotive Sector Rajan Wadhera said the projections of a good monsoon and focused investments in rural sector is expected to spur demand.
"We have a robust outlook for future...At Mahindra we look forward to growth momentum on the back of our existing product portfolio as well as upcoming new products," he added.
Wadhera further said implementation of GST will be a significant game changer, and hoped it would benefit the auto industry.