The company had sold 13,979 units in the corresponding month of previous year, Toyota Kirloskar Motor (TKM) said in a statement.
In the domestic market, TKM sold 10,100 units in February, 2014 as compared to 12,756 units in February, 2013.
During the month, the company exported 1,184 units of Etios, it added.
"The excise duty cut is a welcome step taken by the government to revive sale. However, other factors like high interest rates, falling value of rupee and unstable fuel pricing still loom large on the market," TKM Senior Vice- President (Sales and Marketing) N Raja said.