40,085 units, while those of premium compact cars consisting of Swift, Estilo, Ritz rose by 9.3 per cent to 28,285 units in March.
Homegrown Mahindra & Mahindra's also saw its domestic sales down by 1.49 per cent at 48,490 units as against 49,225 in the same month previous year.
"Post the reduction in the excise duty across all segments, the auto industry has seen the level of inquiry going up, but has not witnessed any major surge in sales," M&M Chief Executive (Automotive Division) Pravin Shah said.
He said the company hopes that the buying sentiment will improve and change post the national elections, leading to an increase in demand.
Toyota Kirloskar Motor (TKM), which was impacted by a strike at its Bangalore plant, sold 8,206 units in March 2014 in the domestic market, as compared to 19,452 units in March 2013.
"We started limited operations from March 18, 2014, with the help of our non-unionised team members, majority of whom are supervisors," TKM Senior Vice President (Sales and Marketing),N Raja said.
On the two-wheeler front, Honda Motorcycle & Scooter India (HMSI) and TVS Motor Company posted growth last month.
While HMSI registered 55 per cent increase in sales at 3,92,148 units for March, 2014, TVS Motor Co reported a 16 per cent increase in its domestic sales at 165,482 units in March 2014.
In the interim Budget 2014-15, Finance Minister P. Chidambaram had announced reduction of excise duty on small cars, scooters, motorcycles and commercial vehicles to 8 per cent from 12 per cent earlier; 24 per cent from 30 per cent on SUVs; 24 per cent from 27 per cent on large cars and 20 per cent from 24 per cent in mid sized cars.