Mumbai : Maruti Suzuki India recorded its highest monthly sales in the domestic market in July as car and bike sales continued to cruise in the country.

With the festival season about to start and good monsoon rains underway, industry insiders and analysts expect automakers to retain the momentum for the rest of the year.

Leading the charge is the country's largest carmaker. Maruti Suzuki posted a 33% year-on-year jump in domestic sales in July, while its overall monthly sales crossed the one-lakh mark for the second time, the company said in a statement.

Maruti Suzuki had reported its highest monthly sales of 1.02 lakh units in May. That record won't last very long. The company is expected to keep up the pace, if not accelerate, with the launch of a new variant of the Alto, India's top-selling car, this week.

Korean auto major Hyundai Motor India, meanwhile, regained its position as the country's second-largest carmaker ahead of Tata Motors as its sales increased 24% in July.

Tata Motors recorded a more impressive 62% year-on-year jump in sales on the back of increased dispatches of the Nano. The fourth largest player Mahindra & Mahindra also reported a 20% rise in sales in July.

Among luxury carmakers, Mercedes Benz India logged a record sales of 521 units in July-its highest-ever monthly sales in its 15-year existence in India.

And the industry is expected to retain the momentum as the festive season and good monsoon are expected to keep consumers buoyant both in urban and rural areas.

"With raw material prices showing signs of softening and a good monsoon, automakers will be able to maintain their margins and a growth rate of 13-15% through the year," said Abdul Majeed, auto practice leader at PricewaterhouseCoopers (PwC).

Toyota Kirloskar, which is expected to roll out its much-awaited Etios hatchback in December, reported a 36% jump in sales due to the success of new launches such as the Fortuner and the Corolla Altis diesel.

The company received more than a thousand bookings for the Altis diesel in the first 11 days after its launch on July 21, said Sandeep Singh, deputy MD, marketing, at Toyota Kirloskar.