According to SIAM, carmakers sold 48,091 units in foreign markets last month compared to 34,149 units in the corresponding period last year.
The export growth is in sharp contrast to the situation in the domestic market, where car sales have fallen for the first time after 30 months of continuous growth, with 15.76 percent decline in July this year.
"We have seen a renaissance in automobile exports. Although Europe remains flat, some markets are doing very well," said the director general of SIAM Vishnu Mathur reporters.
Exporters of cars have also ventured into new markets such as Latin America and Africa to boost sales, he added.
Country's largest car exporter Hyundai Motor India sent 24,025 units last month, a 11.23 per cent.
The domestic car market leader Maruti Suzuki India sales in overseas markets, however, decreased by 17.50 percent to 8741 units.
Ford car manufacturer exports soared by more than four times 3202 units because of its small car sales Figo in several new markets.
SIAM said total two-wheeler growth of exports also witnessed robust 29.42 per cent at 1,75,970 units in July, compared to 1,35,973 units in the period last year.
Exports of motorcycles during the month also rose 27.97 percent to 1,66,546 units 1,30,148 units in the same period last year, he said.
Two-wheeler major Bajaj Auto sold 1,15,769 motorcycles in the international markets in July 2011 to 32.09 percent. TVS Motor's exports rose 28.64 percent to 22,079 units.
However, the hero MotoCorp (formerly Hero Honda) saw its exports fall 15.85 percent by bicycle, compared to 9952 units.
During the month, the total commercial vehicle exports grew by 30.64 percent to 7,499 units from 5,740 units in the corresponding month last year, SIAM said.
Exports of vehicles in general at all levels of the country increased by 33.36 percent in July to 2,64,486 units 1,98,331 units in the same month last year.