Domestic passenger vehicle sales grew 16.68 per cent 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 per cent 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 per cent to 10,05,666 units as against 8,23,051 units a year earlier.
Total two-wheeler sales in August grew 26.32 per cent to 16,48,883 units compared with 13,05,348 units in the year-ago month.
Sales of commercial vehicles rose by 1.53 per cent to 52,996 units in August, Siam said.
Vehicle sales across categories registered a growth of 23.72 per cent to 20,10,794 units from 16,25,332 units in August 2015, it added.