In the year-ago period, the company had sold 681 cars, Audi India said in a statement.
"Powering ahead with its positive outlook for 2012, the brand with the four rings continued its growth trajectory with a sale of 1,002 cars in March 2012, which nearly equals Audi India's annual sales figure of 2008 (1,050 cars)," the company said.
During January-March period of 2012, the luxury car maker sales rose by 41% to 2,269 units from 1,611 units in the year-ago period.
"Our impressive sales performance this quarter is testimony to the positive customer response to progressive design, world-class services and high qualitative network growth," Audi India Head Michael Perschke said.
"Our business luxury limousine, Audi A6 and the Audi A4 have contributed greatly to this sales performance," he added.
The company is now gearing up to launch the Audi Q3 later this year.
The luxury carmaker said it would further expand its footprint to cover markets like Coimbatore and Lucknow this year, while further consolidating its presence in Mumbai and Delhi.
"Dealerships will be announced in these locations shortly," it said.
Audi India, a part of the European auto major Volkswagen Group, sells various models in India such as premium sedans A4, A6 and A8, sports utility vehicles Q5 and Q7, and sports cars RS5 Coupe, R8 and R8 Spyder.