In line with the industry projections, domestic passenger-car sales increased by 2.48 per cent to 1,13,490 units in May from 1,10,745 units in the same month last year, according to figures released by the Society of Indian Automobile Manufacturers (SIAM).
SIAM had projected a 0-5 per cent growth in passenger car sales for this fiscal.
Motorcycle sales in the country during the month was up 12.34 per cent at 5,76,541 units from 5,13,209 units in May 2008.
Total two-wheeler sales during the month went up by 12.45 per cent to 7,27,937 units against 6,47,358 units last year.
The uptrend in car sales was led largely by market leader Maruti Suzuki India Ltd whose sales grew in double digits last month.
Hyundai and Tata Motors both suffered contraction in the domestic market during the month.
While sales of cars and two wheelers seem to getting back on track, commercial vehicle sales continued to be laggard with a 14.78 per cent contraction in May.
During the month this year, 30,800 units of commercial vehicles were sold against 36,141 units last year.