Domestic passenger vehicle sales grew 16.68% to 2,58,722 units in August from 2,21,743 units in the same month last year.
Car sales were also up 9.53% to 1,77,829 units as against 1,62,360 units in August last year, according to the data released by the Society of Indian Automobile Manufacturers (Siam).
Motorcycle sales last month jumped by 22.19% to 10,05,666 units as against 8,23,051 units a year earlier.
Total two-wheeler sales in August grew 26.32% to 16,48,883 units compared with 13,05,348 units in the year-ago month.
Sales of commercial vehicles rose by 1.53% to 52,996 units in August, Siam said.
Vehicle sales across categories registered a growth of 23.72% to 20,10,794 units from 16,25,332 units in August 2015, it added.