Falling interest rates and a spate of new models have helped stoke demand in the country of nearly 1.2 billion people, manufacturers say.
Sales of commercial vehicles, seen as an important barometer of economic health, jumped by 9.6 percent to 37,624 units, ending nearly a year of continuous decline.
India’s economy grew by a better-than-expected 5.8 percent in the quarter ended March.
But a weak monsoon has clouded the outlook for growth in the months ahead as rural areas, where some 700 million people live, feel the impact of poor harvests.
Motorcycle sales climbed 19.48 percent to 546,245 units in July from a year earlier.
The country's vehicle makers cut prices following a government reduction in value-added tax last December, part of a stimulus package to help the sector.
Vehicle manufacture