The Ignis is built on a new generation rigid platform embodying Suzuki Total Effective Control Technology (TECT) for occupant protection.
"Auto sales numbers have not declined. From April to December there has been a growth of 9-10 per cent. We sold 106,000 cars to dealers. The dealers sold 183,000 cars to customers. That reduced inventory to an all time low of 34,000," Mr Bhargava said.
India's fuel demand in 2016 grew at its fastest in at least 16 years as low oil prices boosted demand for gasoline and aviation fuels, but analysts say the country's currency troubles will put the brakes on this year.
The auto maker's bullish forecast comes at a time when the industry has been emphasizing investments in the US following attacks by President-elect Donald Trump for building vehicles in Mexico.
Auto sales have seen an especially big drop in rural areas and regions where cash transactions are typically prevalent.
"Budget is something which we all are hoping that the government will bring measures to boost consumer sentiment," Society of Indian Automobile Manufacturers (SIAM) Director General Vishnu Mathur said.
Vehicle sales across categories registered a decline of 18.66% year-on-year last month at 12,21,929 units, data showed.
Mercedes-Benz India sold 13,231 units in 2016, marginally down from 13,502 units in 2015 when it toppled compatriot Audi to become the No 1 brand in the country.
The company also sold a record 5,83,312 units during 2016 calendar year, up 20 per cent compared to 2015.
Introducing an elegant, sporty design and establishing itself as a pioneer in new technologies like autonomous driving has helped revive the Mercedes brand which analysts say will help keep the Stuttgart-based carmaker ahead of the pack.
The key contributor to Volkswagen group profit increased sales of luxury cars and sport-utility vehicles to 1.87 million units from 1.80 million in 2015, a spokesman said
Car manufacturers are developing connected cars, which use the internet to improve customers' driving experiences and allow vehicles to communicate with each other, in a race with tech giants such as Google.
General Motors has two plants in India and it said in 2015 it planned to stop production at one of its plants in the western state of Gujarat by end-2016 as it consolidates operations at one location.
'Vishwa Kalyan Kamgar Sanghatana' is demanding reinstatement of the workmen from its Chakan plant, who were dismissed in FY 2013-14 from the services, it added.
Tata Motors and Castrol on Thursday inked a three-year agreement under which the lubricants maker would supply commercial vehicle oils to the homegrown auto major in over 50 markets including SAARC and ASEAN region, Middle East, Africa, Russia and Latin America.
The country's largest carmaker, Maruti Suzuki India (MSI), opened online booking for its premium hatchback 'Ignis' that it plans to launch next week.