The company had sold 35,634 units in the same month last year, a company statement said.
In the domestic market, sales were up 15 per cent at 36,944 units last month compared with 32,122 in August 2015, M&M said.
Exports rose 4 per cent to 3,647 units during the month as against 3,512 in August last year, it added.
Sales of passenger vehicles, including Scorpio, XUV500, Xylo, Bolero and Verito, also went up 29 per cent to 18,246 units, from 14,198 units in the same month last year.
Commercial vehicle sales rose 7 per cent to 13,993 units in August as against 13,023 in the year-ago period, M&M said.
M&M Chief Executive (auto division) Pravin Shah said: "The improved spread of monsoon as well as new product launches have helped the auto industry perform positively."
"Coupled with this, the uncertainty surrounding diesel vehicles has been lifted by the honourable Supreme Court, giving the customer the choice to buy his preferred vehicle which will help improve sentiment, going forward," he added.
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