Sales of the compact segment comprising Swift, Estilo, Ritz, Dzire rose 24.4% to 45,701 units in June this year as against 36,741 units last year.
Domestic car sales were in a slow lane in June with major manufacturers Maruti Suzuki and Hyundai posting single digit growth as the auto industry continued to face challenging times.
Honda Cars India and Tata Motors posted double digit growth while Mahindra & Mahindra and Toyota reported decline in sales during the month.
Country's largest carmaker Maruti Suzuki said its domestic sales increased 1.6% in the month to 1,02,626 units as against 1,00,964 units a year ago.
Sales of the compact segment comprising Swift, Estilo, Ritz, Dzire rose 24.4% to 45,701 units in June this year as against 36,741 units last year.
However, sales of mini segment cars, including Alto and WagonR, declined 27.9% to 34,336 units compared with 47,618 units in the year-ago period.
Rival Hyundai Motor India Ltd (HMIL) sold 36,300 units last month as compared with 33,514 units in June 2014, up 8.3%.
HMIL Senior Vice-President (Sales and Marketing) Rakesh Srivastava said: "In a market bearing low traction consistent demand of Elite i20, Grand, Xcent- Hyundai volume grew by 8.3% and with the upcoming launch of global SUV Creta, we are confident of sustained growth."
Tata Motors sales of passenger vehicles in the domestic market in June rose 30% at 10,281 units as against 7,911 units in the same month previous year.
The sales of the company's passenger cars in June were higher by 44% at 8,516 units as compared to 5,933 units in June 2014.
"For Tata Motors, the growth in sales has been driven by Zest, Bolt and the GenX Nano. We are also seeing a lot of traction in our older models like Indica and Indigo after repositioning them in smaller cities," Tata Motors
President, Passenger Vehicles Business Unit Mayank Pareek told PTI.
He, however, said there was a concern as the sales growth for the overall industry was slowing down from April to June.
"Negative sentiments over poor monsoon and postponement of purchases by customers waiting for reduced interest rates on vehicles loans are primary reasons for the slowdown in car sales," he said.
Honda Cars India reported a 12.65% increase in its domestic sales at 18,380 units in June.
Utility vehicle major Mahindra & Mahindra saw its domestic sales decline 9% to 33,282 units last month as against 36,452 units in the same month of last year.
On the outlook, M&M Chief Executive (Automotive Division) Pravin Shah said: "With a normal monsoon till date, an overall positive sentiment and a slew of new launches in the automotive industry, we expect buoyancy in demand going forward."
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