Passenger car sales in India grew at an annual rate of 6.7% in July, data from the Society of Indian Automobile Manufacturers (SIAM) showed on Thursday.
The industry body said this was the ninth consecutive monthly increase in car sales but cautioned that high interest rates, elevated fuel prices and increased vehicle prices are weighing on the overall demand.
Indian automakers sold 143,496 cars in the domestic market in July, according to the SIAM data.
Sales of Commercial Vehicles, or trucks and buses, rose 1.2% in July to 65,008 vehicles.
Motorcycle sales were up 5% at 821,821 units.
India's total two-wheeler sales increased by 7.5% to 11,32,696 units from the 10,54,120 units sold in the year-ago period.
Total automotive vehicle sales across categories expanded by 7.5% to 14,46,959 units in July 2012 as against 13,45,644 units sold in the same month of 2011, the SIAM data showed.