German carmaker BMW posted a 4.2 percent increase in luxury auto sales in July on strong demand from China and Russia, contrasting rival Mercedes-Benz.

Munich-based BMW, the world's biggest luxury carmaker, said yesterday that brand sales rose to a record 113,253 vehicles, driven by demand for models such as the 1-Series hatchback and the X3 compact SUV. Seven-month deliveries gained 7.7 percent to 860,327.

"We're confident that we will continue to make solid gains throughout the second half of the year," said BMW sales chief Ian Robertson, noting the new X1 compact SUV and the revamped 7-Series sedan may add momentum to sales.

Daimler's Mercedes earlier said its premium auto sales fell 3.1 percent in July to 97,327 vehicles.

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