First quarter profits at Maruti Suzuki India rose a healthy 25.3% to INR5.83bn (US$120m) in the three months to 30 June.

Revenue grew 34% during the first quarter of fiscal 2009-10 to INR63.4bn as vehicle unit sales climbed almost 18% to 226,729.

Maruti attributed its gains to strong volume growth in both domestic and export markets. Exports grew 135% to 29,314 units while domestic sales rose 9.6% to 197,415 units, led by the new A-star (Alto) and Ritz (Swift sedan) models.

“The positive response to new models and continued focus on tapping new market segments enabled the company to achieve near double digit volume growth and enhanced market share,” it said.

“In exports, the positive response to the A-star (also exported as the Nissan Pixo), combined with scrappage incentives offered by governments in Europe, led to sharp growth.”

Maruti said net profit growth was helped by an easing of commodity prices, a sales mix favouring of higher end models and favourable foreign exchange. It was continuing to focus on kaizen and cost reduction efforts.

The company added 21 sales outlets and 12 service centres to its network in India during the first fiscal quarter.

In recent months, India’s carmakers have seen demand for vehicles pick up on lower interest rates and stimulus packages from the government, aimed at reviving the industry which was hit by the global downturn.