In spite of higher exports, total sales also declined 5 per cent to 12,610 units from 13,245 units a year ago.
Toyota exported 744 vehicles last month as against 639 vehicles same month a year ago.
The company's Etios model constituted 639 of the exported vehicles.
"Demand, however, witnessed a spike in the festive season during Dhanteras and Diwali," said Toyota Kiroloskar Motor deputy Managing Director N. Raja in the statement.
Raja said the boost in customer sentiment enabled an upward trend in the company's sales performance compared to the last few months of slowdown.
Company models Innova, Fortuner edition and Happenin New Yaris witnessed higher retail conversions.
The company follows a 'pull system'-based production, which aims to make dealers receive vehicle stocks when they need to replenish the inventory.
The auto giant sold 14,000 units of the Glanza model, since its launch in June.
Toyota is pinning hopes for sales to continue and pick up beyond the festive season, Raja added.