However, motorcycle sales last month dipped 5.22% to 8,59,521 units as against 9,06,901 units a year earlier, according to data released by the Society of Indian Automobile Manufacturers (SIAM).
Total two-wheeler sales in March declined by 0.84% to 13,23,184 units.
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Sales of commercial vehicles were up 2.14% to 65,470 units in March, SIAM said.
Vehicle sales across categories registered a decline of 0.15% to 16,75,432 units from 16,77,890 units in March 2014, it added.
For the entire fiscal 2014-15, ended March 31, domestic car sales grew by 4.99% to 18,76,017 units as compared to 17,86,826 units in the 2013-14 fiscal.
Total two-wheeler sales were up 8.09% for the 2014-15 fiscal at 160,04,581 units, up from 148,06,778 units in 2013-14.
Motorcycle sales for the fiscal ended March 31, were up 2.50% to 107,43,549-units from 104,81,115 units in corresponding fiscal.
Sales of commercial vehicles were down 2.83% to 6,14,961 units in 2014-15.
Vehicle sales across categories were up 7.22% at 197,52,580 units in 2014-15 from 184,23,223 units in 2013-14 fiscal.