The company had sold 10,002 units in 2013.
"We are delighted that we are the first brand to notch up a sale of more than 10,000 cars for two years in a row while maintaining our momentum of growth in India for the seventh consecutive year," Audi India head Joe King said in a statement.
Heavy demand, which far outstripped supply, enabled the company to achieve a stellar sales performance in the last quarter with sale of 3,044 units, registering a growth of 17 per cent, he added.
"We believe for Audi, India is a long journey and it's not just about a month or a year. The strategy that we have implemented in this journey has helped us to not only achieve leadership but also to maintain it," Mr King said.
The company introduced many firsts in 2014, including introduction of segment first products such as Audi A3 Sedan and Audi A3 Cabriolet.
Last week, rival Mercedes Benz India had reported a 13 per cent increase in annual sales in India in 2014 at 10,201 units. It had sold a total of 9,003 units in 2013.
BMW India is yet to come out with the sales figure for 2014.