The company sold 40,679 units in the same month last year.
Domestic sales of Tata Motors' commercial and passenger vehicles grew 3 per cent to 36,466 units in August over the same month of the previous year.
Sales of passenger vehicles in the domestic market grew 16 per cent to 13,002 units last month as against 11,163 in the year-ago period, Tata Motors said in a statement.
Passenger car sales were up 17 per cent at 11,435 units in August compared with 9,814 in the year-ago period.
Exports during the month were up 27 per cent at 6,595 units compared with 5,201 units sold in August 2015.
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