The carmaker had sold 37,538 units in the corresponding month a year ago.
Domestic sales of Tata Motors' commercial and passenger vehicles remained flat at 34,818 units in May, Tata Motors said in a statement.
Sales of passenger vehicles in the domestic market in May stood at 11,138 units as against 9,230 units in the same month previous year, up 20.67 per cent.
The sales of the passenger cars in May 2015 rose 32.37 per cent to 9,176 units as against 6,932 units in May 2014. Utility vehicle sales declined 15 per cent to 1,962 units in May 2015.
Commenting on the performance of the passenger vehicles segment, Tata Motors president (passenger vehicles business unit) Mayank Pareek told PTI, "Our sales have been mainly driven by Zest and Bolt in the passenger cars segment. Utility vehicles continue to be under stress."
He said the automotive market is still on a slow recovery path.
"First time buyers are still not coming out in full to spur sales. Interest rates have not still come down and many customers are still not engaging in taking up loans and are holding back in expectation of rates coming down," he added.
He said the industry could continue to face the slow growth in the first half of the fiscal year and there may be some improvement in the second half depending on a variety of factors such as the growth of economy and monsoon.
In the commercial vehicles segment, domestic sales were at 23,680 units, a decline of 6 per cent over May 2014, the company said.
Exports during the month stood at 4,678 units compared to 3,191 units in May 2014, up 47 per cent.
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