New Delhi, Aug 3 - India's second largest two-wheeler maker Bajaj Auto Monday said its sales dipped 0.7 percent last month to 168,731 units as compared to 169,971 units sold in July last year.

The company said in a statement that its motorcycle sales dipped 0.3 percent to 168,163 units in July from 168,836 units sold in the like period last year.

However, Bajaj's three-wheeler sales rose 1.5 percent to 24,104 from 23,733 units in July 2008.

The company's total sales declined 0.4 percent to 192,835 units from 193,704 units, the statement added.

'The newly launched Discover DTS-SI has been extremely well received, almost 10,000 units were sold since the launch on July 17, 2009, and the plan for August is to double that,' the company said.

Bajaj plans to step up its motorcycle production by 25 percent this month in response to the growing demand.

The company has posted a 67 percent jump in net profit at Rs.293 crore for the first quarter this fiscal from Rs.175 crore in the like period last year.