Domestic passenger car sales rose 17.47 per cent to 162,022 units in July, from 137,922 units in the same month of last year.
Motorcycle sales last month declined 6.36 per cent to 808,332 units, from 863,188 units a year earlier, according to the data released by the Society of Indian Automobile Manufacturers (SIAM).
Total two-wheeler sales in July rose 0.14 per cent to 1,300,457 units.
Sales of total commercial vehicles rose 8.41 per cent to 51,795 units in July, SIAM said.
Vehicle sales across categories registered an increase of 1.39 per cent to 1,619,771 units from 1,597,493 units in July 2014, it added.