Car sales in India rose 18 percent in August from a year earlier, according to SIAM.

New models and discounts helped lure buyers in a market battling high interest rates and fierce competition.

But motorcycle sales fell 11 percent, while sales of trucks and buses rose 3.2 percent, the Society of Indian Automobile Manufacturers (SIAM) said in a statement.

Car sales rose to 98,893 units in August from 83,864 in the same month a year earlier, it said.

Maruti Udyog Ltd, India's largest car maker, which reported on Sept. 1 its sales jumped 27 percent in August to 65,958 units, led the way.

The company said last week it could not give discounts forever.

"Our sales are good, but at what cost? I don't know how long I could keep doing this," Managing Director Jagdish Khattar told Reuters, adding the discounts would be offered till Sept. 15.

Cumulative car sales in India rose 13.6 percent to 590,653 units during April-August, SIAM said.