However, there was a 5 percent month-on-month decline in overall vehicle retail sales
The automobile major's exports declined 22 percent at 7,055 units as compared with 9,026 units in the same period last year.
Its agri machinery segment in July sold 3,953 tractors in domestic market, a growth of 17.6 percent compared with 3,362 tractors in same period last fiscal.
M&M sold 13,168 units of commercial vehicles during the month, higher by 8 percent and 4,781 units in 3-wheeler segment, up by 7 percent compared with year-ago period.
Medium & heavy commercial vehicle sales declined 7 percent to 8,182 units while light commercial vehicle sales grew by 4 percent to 2,310 units compared with year-ago period.
Domestic sales increased by 22.5 percent to 1.1 lakh units compared to 90,093 units in the year-ago period while exports grew only 0.2 percent to 11,307 units in July.
Rajiv Bajaj, managing director of Bajaj Auto said that July was the best month as the company had posted double digit growth on strong sales in the domestic as well as export markets.
Ashok Leyland's concerns over falling commercial vehical sales rose for June as numbers declined 4.63% to 8,009 units on a year-on-year basis. Vinod Dasari, managing director of Ashok Leyland said rise in retail interest rates have affected the demand of heavy vehicles and the company is, therefore, planning to hike rates by 1-2% ver soon.